Offshoring and skill-upgrading in French manufacturing: A Heckscher-Ohlin-Melitz view
- Author(s)
- Juan Carluccio, Alejandro Cunat, Harald Fadinger, Christian Fons-Rosen
- Abstract
We present a factor-proportions trade model in which heterogeneous firms can offshore intermediate inputs subject to fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor-intensive inputs to the labor-abundant countries than low-productivity firms. Differently from the traditional versions of factor-proportions trade theory, Heckscher-Ohlin forces operate at the within-industry level, leading
to endogenous variation in skill intensity across firms that is positively correlated with firm productivity. Using French firm-level data for the years 1996 to 2007, we provide empirical support for the factor proportions channel through which offshoring to labor-abundant countries affects the firm-level skill intensities of French manufacturers.- Organisation(s)
- Department of Economics
- External organisation(s)
- Foundation Banque de France, University of Surrey, Universität Mannheim, University Pompeu Fabra
- No. of pages
- 54
- Publication date
- 2015
- Austrian Fields of Science 2012
- 502013 Industrial economics, 502003 Foreign trade
- Portal url
- https://ucris.univie.ac.at/portal/en/publications/offshoring-and-skillupgrading-in-french-manufacturing-a-heckscherohlinmelitz-view(31c6cdb9-78ae-43ef-810f-c97fc3b77a45).html