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Exports and Labor Demand : Evidence from Egyptian Firm-Level Data

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  • Berg,Claudia N.
  • Robertson,Raymond
  • Lopez-Acevedo,Gladys C.

Abstract

Unlike many countries, the Arab Republic of Egypt did not experience significant labor market improvements following trade liberalization. This paper investigates why increased Egyptian exports did not directly increase employment. To illustrate the relationship between firm-level exporting and employment, the paper presents a simplified general equilibrium model with two sectors: one able to export and one “reserve” sector. The paper tests the implications of this theory using firm-level data from the World Bank’s Enterprise Surveys in 2013, 2016, and 2020. The firm-level microanalysis demonstrates that although there is a positive employment response to export expansion, it does not occur at a large enough scale to be felt at the macro level. To seize the benefits of trade, Egypt requires deeper business environment reforms to incentivize large export, labor-intensive sector growth and integrate its economy into global value chains.

Suggested Citation

  • Berg,Claudia N. & Robertson,Raymond & Lopez-Acevedo,Gladys C., 2022. "Exports and Labor Demand : Evidence from Egyptian Firm-Level Data," Policy Research Working Paper Series 10213, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10213
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    References listed on IDEAS

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    Cited by:

    1. Roche Rodriguez, Jaime Alfonso & Robertson, Raymond & Lopez-Acevedo, Gladys & Zárate, Daniela Ruiz, 2023. "Trade Liberalization and Local Labor Markets in Morocco," IZA Discussion Papers 16213, Institute of Labor Economics (IZA).

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    JEL classification:

    • F1 - International Economics - - Trade
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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