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Does Trade Foster Employment Growth in Emerging Markets? Evidence from Turkey

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  • Lo Turco, Alessia
  • Maggioni, Daniela

Abstract

This work investigates the impact of importing, exporting, and two-way trading on firm labor demand in Turkish manufacturing. Adopting Multiple Propensity Score Matching techniques and Difference in Difference estimator, we support the positive internationalization impact on firm employment for an emergent country. Our evidence reveals the existence of complementarity effects between exports and imports, which is strengthened for high trade intensity firms. Furthermore, only high intensity exporting seems to promote the workforce skill upgrading in terms of an increase in the R&D worker share. The employment creation effect of firm internationalization reflects its large positive impact on firm production scale.

Suggested Citation

  • Lo Turco, Alessia & Maggioni, Daniela, 2013. "Does Trade Foster Employment Growth in Emerging Markets? Evidence from Turkey," World Development, Elsevier, vol. 52(C), pages 1-18.
    • Handle: RePEc:eee:wdevel:v:52:y:2013:i:c:p:1-18
    DOI: 10.1016/j.worlddev.2013.06.003
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    2. Yasar, Mahmut & Rejesus, Roderick M., 2020. "International linkages, technology transfer, and the skilled labor wage share: Evidence from plant-level data in Indonesia," World Development, Elsevier, vol. 128(C).
    3. Ahmet Sekerkaya & Feyza Nur Ozkan & Gozde Gusan Kose & Dogan Akarsu, 2020. "Consumer Reactions to Technological Attributes in Product Design: A Technology Acceptance Model Perspective," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(2), pages 151-176.
    4. Dong Xuan Nguyen, 2023. "Trade and employment in Vietnam: how firms' trade matters," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(1), pages 20-38, May.
    5. Sanjeev Kumar & Falguni Pattanaik & Ajay K. Singh, 2021. "Modeling Trade–Employment Elasticity Nexus: Evidence from India," Emerging Economy Studies, International Management Institute, vol. 7(1), pages 62-75, May.
    6. 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).
    7. Elena Meschi & Erol Taymaz & Marco Vivarelli, 2016. "Globalization, technological change and labor demand: a firm-level analysis for Turkey," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 655-680, November.
    8. Cebeci, Tolga, 2014. "Impact of export destinations on firm performance," Policy Research Working Paper Series 6743, The World Bank.
    9. Dai, Xiaoyong & Sun, Zao & Liu, Hang, 2018. "Disentangling the effects of endogenous export and innovation on the performance of Chinese manufacturing firms," China Economic Review, Elsevier, vol. 50(C), pages 42-58.
    10. Aparicio-Pérez Daniel & Calatayud Carolina & Rochina-Barrachina María E., 2021. "The Export Strategy and SMEs Employment Resilience During Slump Periods," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 15(1), pages 163-186, January.
    11. 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).
    12. Loreta ISARAJ & Meleq HOXHAJ, 2021. "Macroeconomic factors influencing unemployment in Albania," Romanian Journal of Economics, Institute of National Economy, vol. 53(2(62)), pages 56-67, December.
    13. Mohammad Amin, 2023. "Does competition from informal firms hurt job creation by formal manufacturing SMEs in developing and emerging countries? Evidence using firm-level survey data," Small Business Economics, Springer, vol. 60(4), pages 1659-1681, 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. Adriana Peluffo & Mauricio Suárez & Alvaro Brunini, 2022. "Industrial Policy in Uruguay: Which are the effects?," Asociación Argentina de Economía Política: Working Papers 4584, Asociación Argentina de Economía Política.
    16. Halit Yanikkaya & Abdullah Altun & Pinar Tat, 2019. "Openness and Deindustrialization: A Turkish Case," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 33(2), pages 1-25.
    17. Eralba CELA & Tineke FOKKEMA & Elena AMBROSETTI, 2012. "Links Between Transnationalism Integration and Duration of Residence: The Case of eastern European Migrants in Italy," Working Papers 386, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    18. Fangfang Hou & Elisabetta Magnani & Xinpeng Xu, 2022. "International capital markets and domestic employment: Evidence from worldwide publicly listed large firms," The World Economy, Wiley Blackwell, vol. 45(1), pages 220-250, January.
    19. Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2016. "Globalisation, technology and the labour market: A microeconometric analysis for Turkey," MERIT Working Papers 2016-026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    importer; exporter; two-way trader; employment; firm growth; Turkey;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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