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Job Creation, Job Destruction and Firms’ International Trade Involvement

National Bank of Belgium Working Paper No. 130

46 Pages Posted: 3 Oct 2010  

Mauro Pisu

OECD; Leverhulme Centre for Research on Globalisation and Economic Policy; National Bank of Belgium

Date Written: March 17, 2008

Abstract

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.

Keywords: Heterogeneous firms, Job reallocation, Imports, Exports, FDI

JEL Classification: F16, J63

Suggested Citation

Pisu, Mauro, Job Creation, Job Destruction and Firms’ International Trade Involvement (March 17, 2008). National Bank of Belgium Working Paper No. 130. Available at SSRN: https://ssrn.com/abstract=1685280 or http://dx.doi.org/10.2139/ssrn.1685280

Mauro Pisu (Contact Author)

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

Leverhulme Centre for Research on Globalisation and Economic Policy ( email )

University of Nottingham
School of Economics
Nottingham, NG7 2RD
United Kingdom

National Bank of Belgium ( email )

Research Department
Boulevard de Berlaimont 14
Brussels, 1000
Belgium

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