When the Floodgates Open: “Northern” Firms' Response to Removal of Trade Quotas on Chinese Goods
利用中国加入WTO后纺织品配额取消，研究丹麦企业如何调整劳动力结构以应对低工资竞争，发现竞争导致就业、附加值和无形资产下降，企业转向中国优势较小的产品。
Using the dismantling of the Multi-fibre Arrangement quotas on Chinese textile products in conjunction with China's accession to the World Trade Organization (WTO), within firms adjustments to intensified low-wage competition is analyzed. Employing Danish employer-employee matched data covering from 1995 to 2007, the analysis shows a significant change in the workforce composition of firms in response to heightened competition. Competition is found to negatively affect employment, value-added, and intangible assets of the Danish firms, and firms refocus away from products, where China's competitive advantage becomes higher. The results show an important role of the distributional impact of low-wage competition within firms in restructuring the industry.