Offshoring and skill-upgrading in French manufacturing : a Heckscher-Ohlin-Melitz view


Carluccio, Juan ; Cun͂at, Alejandro ; Fadinger, Harald ; Fons-Rosen, Christian


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URL: https://ub-madoc.bib.uni-mannheim.de/39658
URN: urn:nbn:de:bsz:180-madoc-396584
Document Type: Working paper
Year of publication: 2015
The title of a journal, publication series: Working Paper Series
Volume: 15-13
Place of publication: Mannheim
Publication language: English
Institution: School of Law and Economics > VWL, Internat. Handel, Makroökonomik, Entwicklungsökonomik (Fadinger 2014-)
MADOC publication series: Department of Economics > Working Paper Series
Subject: 330 Economics
Classification: JEL: F11 , F12 , F14,
Keywords (English): offshoring , heterogeneous firms , firm-level factor intensities , Heckscher-Ohlin
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-abundantcountries affects the firm-level skill intensities of French manufacturers

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Carluccio, Juan ; Cun͂at, Alejandro ; Fadinger, Harald ; Fons-Rosen, Christian (2015) Offshoring and skill-upgrading in French manufacturing : a Heckscher-Ohlin-Melitz view. Open Access Working Paper Series Mannheim 15-13 [Working paper]
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