Job Creation, Job Destruction and Firms’ International Trade Involvement
OECD; Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium
March 17, 2008
National Bank of Belgium Working Paper No. 130
One of the most important predictions made in recent international trade literature based on heterogeneous firms concerns the within-industry job reallocation from firms not involved in international markets to those that are. This paper quantifies the extent of this reallocation using a dataset of Belgian manufacturing firms from 1998 to 2004 providing information on their international trading activities. The results suggest that, at three-digit industry levels, the shifts in employment between firms having different trading status account for 6 to 30 percent of total job reallocation. This effect is stronger for large than for small firms.
Number of Pages in PDF File: 46
Keywords: Heterogeneous firms, Job reallocation, Imports, Exports, FDI
JEL Classification: F16, J63
Date posted: October 3, 2010
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