TY  - GEN
AB  - Using the dismantling of the Multi-fibre Arrangement quotas on Chinese textile and clothing
products in conjunction with China's accession to WTO, within firms adjustments to intensified
low-wage competition is analyzed. Employing Danish employer-employee matched data supple-
mented with transaction-level data from between 1995 and 2007, the analysis shows a significant
increase in skill and capital intensity associated with downsizing in response to heightened com-
petition. Competition is found to negatively affect employment, value-added and intangible assets
of the Danish firms, and firms are found to refocus their innovative efforts away from goods where
China's competitive advantage becomes higher. The results show an important role of the distri-
butional impact of low-wage competition within firms in restructuring the industry and support
theories that indicate compositional changes in the scopes and operations of \Northern" firms in
response to competition from \South".
DA  - 2013
DO  - 10.4119/unibi/2631406
KW  - Worker Characteristics
KW  - Intangibles and Product Churning
KW  - Low-Wage Country Competition
KW  - Within Firm Adjustments
KW  - Denmark
KW  - China
KW  - Multi-fibre Arrangement
KW  - Textile and Clothing Industry
LA  - eng
PY  - 2013
SN  - 2196-2723
TI  - When the Floodgates Open: 'Northern' Firms' Response to Removal of Trade Quotas on Chinese Goods
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-26314068
Y2  - 2024-11-22T04:17:13
ER  -