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Technology Adoption, Export Status, and Skill Upgrading: Theory and Evidence

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  • Maria Bas

Abstract

This paper develops a model of trade that features heterogeneous firms, technology choice and different types of skilled labor in a general equilibrium framework to explain within-industry increase in the relative demand for skilled workers. Its main contribution is to investigate the impact of firms' export and technology choice decisions on skill upgrading. Only firms in the upper range of the productivity distribution produce for the foreign market using high-technology. Since this technology is skilled-biased, exporters that resort to modern technologies are more skill intensive. Empirical evidence is also provided to support the model's main predictions using plant-level panel data from Chile's manufacturing sector (1990-1999).
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  • Maria Bas, 2012. "Technology Adoption, Export Status, and Skill Upgrading: Theory and Evidence," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 315-331, May.
  • Handle: RePEc:bla:reviec:v:20:y:2012:i:2:p:315-331
    DOI: j.1467-9396.2012.01024.x
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    File URL: http://hdl.handle.net/10.1111/j.1467-9396.2012.01024.x
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    Cited by:

    1. James Harrigan & Ariell Reshef, 2015. "Skill-biased heterogeneous firms, trade liberalization and the skill premium," Canadian Journal of Economics, Canadian Economics Association, vol. 48(3), pages 1024-1066, August.
    2. Latzer, Hélène & Mayneris, Florian, 2021. "Average income, income inequality and export unit values," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 625-646.
    3. Dewitte, Ruben & Dumont, Michel & Merlevede, Bruno & Rayp, Glenn & Verschelde, Marijn, 2020. "Firm-Heterogeneous Biased Technological Change: A nonparametric approach under endogeneity," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1172-1182.
    4. Michele Battisti & Filippo Belloc & Massimo Del Gatto, 2015. "Unbundling Technology Adoption and tfp at the Firm Level: Do Intangibles Matter?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(2), pages 390-414, June.
    5. Marianne Matthee & Neil Rankin & Carli Bezuidenhout, 2017. "Labour demand and the distribution of wages in South African manufacturing exporters," WIDER Working Paper Series wp-2017-11, World Institute for Development Economic Research (UNU-WIDER).
    6. Koch, Michael & Smolka, Marcel, 2019. "Foreign ownership and skill-biased technological change," Journal of International Economics, Elsevier, vol. 118(C), pages 84-104.
    7. Ulltveit-Moe, Karen Helene & Forslid, Rikard & Okubo, Toshihiro, 2011. "Why are firms that export cleaner? International trade and CO2 emissions," CEPR Discussion Papers 8583, C.E.P.R. Discussion Papers.
    8. Bas, M. & Paunov, C., 2014. "The unequal effect of India's industrial liberalization on firms' decision to innovate: Do business conditions matter?," MERIT Working Papers 2014-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Forslid, Rikard & Okubo, Toshihiro & Ulltveit-Moe, Karen Helene, 2018. "Why are firms that export cleaner? International trade, abatement and environmental emissions," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 166-183.
    10. Bas, Maria, 2020. "The effect of communication and energy services reform on manufacturing firms’ innovation," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 339-362.
    11. Shiyang Li & Huasheng Zhu, 2020. "Agglomeration Externalities and Skill Upgrading in Local Labor Markets: Evidence from Prefecture-Level Cities of China," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
    12. Maria Bas & Ivan Ledezma, 2015. "Trade Liberalization and Heterogeneous Technology Investments," Review of International Economics, Wiley Blackwell, vol. 23(4), pages 738-781, September.
    13. Unjung Whang, 2016. "Skilled-Labor Intensity Differences Across Firms, Endogenous Product Quality, and Wage Inequality," Open Economies Review, Springer, vol. 27(2), pages 251-292, April.
    14. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Wage Inequality in the manufacturing sector of recipient-countries," EconStor Preprints 213936, ZBW - Leibniz Information Centre for Economics.
    15. Marianne Matthee & Neil Rankin & Carli Bezuidenhout, 2017. "Labour demand and the distribution of wages in South African manufacturing exporters," WIDER Working Paper Series 011, World Institute for Development Economic Research (UNU-WIDER).
    16. Wenxiao Wang & Christopher Findlay & Shandre Thangavelu, 2021. "Trade, technology, and the labour market: impacts on wage inequality within countries," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 35(1), pages 19-35, May.

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