International Trade, Offshoring and Heterogeneous Firms
---- Acknowledgements ----
We thank the Swiss National Science Foundation for support (Grant No. 100012-105675/1). This paper was mainly worked while Okubo was Ph.D. student at Graduate Institute, Geneva. The first version was published as CEPR DP, Baldwin and Okubo (2006a). An early draft was presented at the Vth Spring School in Economic Geography, Cagliari, Italy 24th May 2005 and at the annual conference of the European Trade Study Group, Dublin 10th September 2005 (see http://www.etsg.org); we thank the participants for useful and insightful comments especially Thierry Mayer, Pierre-Philippe Combes, Holger Breinlich and Peter Neary. We also thank Jota Ishikawa, Taiji Furusawa and other participants at the 2005 presentation of this paper at Hitotsubashi University. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.