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

Juan Carluccio, Alejandro Cunat, Harald Fadinger and Christian Fons-Rosen

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

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.

Keywords: offshoring; heterogeneous firms; firm-level factor intensities; Heckscher-Ohlin (search for similar items in EconPapers)
JEL-codes: F11 F12 F14 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-eur, nep-int and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View (2015)
Working Paper: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View (2015)
Working Paper: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View (2015)
Working Paper: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View (2015)
Working Paper: Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View (2015)
Working Paper: Offshoring and skill-upgrading in French manufacturing: a Heckscher-Ohlin-Melitz view (2015)
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