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Trade and productivity: The family connection redux

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  • Prettner, Klaus
  • Strulik, Holger

Abstract

We investigate the effects of human capital accumulation and declining fertility on international trade by integrating a micro-founded education and fertility decision of households into a model of trade with firm heterogeneity. The theory implies that the export share of a country increases with the education level of its population and decreases with fertility. These implications explain the empirically observable relations between the birth rate, eduction, and the export share in OECD countries from 1960 to 2010.

Suggested Citation

  • Prettner, Klaus & Strulik, Holger, 2018. "Trade and productivity: The family connection redux," Journal of Macroeconomics, Elsevier, vol. 56(C), pages 276-291.
  • Handle: RePEc:eee:jmacro:v:56:y:2018:i:c:p:276-291
    DOI: 10.1016/j.jmacro.2018.04.002
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    1. Prettner, Klaus & Strulik, Holger, 2016. "Technology, Trade, And Growth: The Role Of Education," Macroeconomic Dynamics, Cambridge University Press, vol. 20(05), pages 1381-1394, July.

    More about this item

    Keywords

    Trade; Firm heterogeneity; Export share; Education; Fertility decline;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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