@techreport{c2ec1b243dec4f77a79a70139e7fc123,
title = "Offshoring and skill-upgrading in French manufacturing: A Heckscher-Ohlin-Melitz view",
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, leadingto 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.",
author = "Juan Carluccio and Alejandro Cunat and Harald Fadinger and Christian Fons-Rosen",
year = "2015",
month = oct,
language = "English",
series = "CEPR Discussion Paper Series",
publisher = "Centre for Economic Policy Research CEPR",
number = "No.10864",
type = "WorkingPaper",
institution = "Centre for Economic Policy Research CEPR",
}