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Department of Economics, Copenhagen Business School Working Paper Series, Department of Economics, Copenhagen Business School

No 19-2007:
Skill-Upgrading and Internationalization: Country-of-Origin or End-Use of Products

Anders Sørensen

Abstract: This paper investigates the empirical consequences for the relationship between skill upgrading and internationalization by decomposing import after country-of-origin and after the end-use of products. I find that the break-down after country-of-origin is of crucial importance, implying that international trade with low-wage countries leads to comprehensive skill upgrading, whereas international trade with high-wage countries leads to skill downgrading in Danish Manufacturing. The empirical literature on skill-upgrading and internationalization has mainly focused on international outsourcing and has to a large extent disregarded import penetration. By splitting import after country-of-origin, this reintroduces import penetration as an important explanation for skill upgrading. skill upgrading, import, country-of-origin, end-use of products

Keywords: na; (follow links to similar papers)

JEL-Codes: G10; (follow links to similar papers)

11 pages, January 1, 2007

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