Asian Dynamics Initiative

I am Asian Dynamics Initiative Professor in International Economics at Department of Economics, University of Copenhagen.

Asian Dynamics Initiative is a cross-faculty Asia focus at the University of Copenhagen. ADI aims at coordinating existing research and teaching on Asia as well as creating a common platform for new, interdisciplinary Asian studies and research.


My research is centered around two topics under 'The economics of the Asian challenge' headline. First, the increasing role of countries such as China and India in world trade means that firms in developed countries may better exploit comparative advantages and become more productive by offshoring parts of the production process to the emerging economies. On the other hand, this may lead to adjustment costs as domestic workers become unemployed and experience earnings losses in the short run. Second, import competition from emerging Asian countries in final goods markets may affect firms through declining goods prices. This, in turn, may lead to lower wages of employed workers. If emerging economies specialize in producing low priced and low-quality goods, strategies for domestic firms may be to adjust their product mix or differentiate their products in the quality dimension by employing higher skilled workers.

Some of my recent papers and ongoing research related to these two themes are listed below:

1. Offshoring:

The Wage Effects of Offshoring: Evidence from Danish Matched Worker-Firm Data (with D. Hummels, R. Jørgensen and C. Xiang), American Economic Review 104, pp. 1597-1629, 2014. 

Education and Labor Market Policies in an Offshoring Global Economy (with D. Hummels and C. Xiang), Nordic Economic Policy Review 1/2013, pp. 75-98, 2013.

Offshoring, Transition and Training: Evidence from Danish Matched Worker-Firm Data (with D. Hummels, L. Skipper and C. Xiang), American Economic Review Papers & Proceedings 102, pp. 424-428, 2012.

Whose Job Goes Abroad? International Outsourcing and Individual Job Separations, Scandinavian Journal of Economics 112, pp. 339-360, 2010.

2. Import competition, quality differentiation and human capital:

The Impact of Chinese Import Penetration on Danish Firms and Workers (with D. Ashournia and D. Nguyen), IZA Discussion Paper No. 8166.

Human Capital and Wages in Exporting Firms (with J. R. Skaksen), Journal of International Economics 75, pp. 363-372, 2008.

Dissemination activities

1. Conference organization

ADI hosted conferences on Asian Diversity in a Global Context at University of Copenhagen 11-13 November 2010 and on Rising Asia, Anxious Europe at University of Copenhagen 2-3 May 2012.

2. Profile magazine for the Asian Dynamics Initiative

Some of my research has been described in a recent ADI profile magazine, which is available here.

3. In the media

Press coverage of inaugural lecture, Berlingske Tidende November 2010: Virksomheder spinder guld på udflytning

Short popular version of NBER wp 17496 in VoxEU: Offshoring, inequality, and the value of college degrees

Politiken Analyse: Humant: Outsourcing gør ikke alle til tabere

Magisterbladet: Outsourcing giver højere løn

Press coverage of IZA Discussion Paper No. 8166: Ugebrevet A4

Popular version in Danish by Kraks Fond Byforskning: Øget importkonkurrence fra lavtlønslande Hvad er effekten af kinesisk import på den danske produktion og det danske arbejdsmarked?