Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz ViewJuan Carluccio, Alejandro Cunat, Harald Fadinger and Christian Fons-Rosen No 22, CeFiG Working Papers from Center for Firms in the Global Economy 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 empiri- cal support for the factor proportions channel through which offshoring to labor-abundant countries affects the firm-level skill intensities of French manufacturers. Date: 2015-09-29, Revised 2015-09-29 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cfg:cfigwp:22 Access Statistics for this paper More papers in CeFiG Working Papers from Center for Firms in the Global Economy Contact information at EDIRC. |
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