Citation

Discussion Paper Details

Please find the details for DP10864 in an easy to copy and paste format below:

Full Details | Bibliographic Reference

Full Details

Title: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View

Author(s): Juan Carluccio, Alejandro Cu�at, Harald Fadinger and Christian Fons-Rosen

Publication Date: October 2015

Keyword(s): firm-level factor intensities, Heckscher-Ohlin, heterogeneous firms and offshoring

Programme Area(s): Industrial Organization and International Trade and Regional Economics

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10864

Bibliographic Reference

Carluccio, J, Cu�at, A, Fadinger, H and Fons-Rosen, C. 2015. 'Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10864