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International Trade and Employment: A Quantile Regression Approach

Author

Listed:
  • Ha, Hoi Van

    (University of Economics and Business, Vietnam National University, Hanoi, Vietnam)

  • Tran, Tuyen Quang

    (University of Economics and Business, Vietnam National University, Hanoi, Vietnam)

Abstract

Existing studies on the relationship international trade and manufacturing employment often use a mean regression approach and focus mainly on developed countries. Few studies have applied a quantile regression approach to examine this relationship in developing countries. To fill the gap, this study considers, for the first time, the impact of rising international trade on employment in a developing country, Vietnam. Using an unbalanced panel dataset for the 2010~2015 period, we find a positive linkage between international trade and firm employment when ordinary least square is used. However, by using a fixed-effect quantile approach, we find that international trade is negatively linked with employment for firms in the low employment percentile but positively related with firms in the high employment percentile. Our results also show that previous studies at the national or industry level may have produced biased results by not controlling for the heterogeneity of firm characteristics.

Suggested Citation

  • Ha, Hoi Van & Tran, Tuyen Quang, 2017. "International Trade and Employment: A Quantile Regression Approach," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(3), pages 531-557.
    • Handle: RePEc:ris:integr:0719
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    Citations

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    Cited by:

    1. Quang Tran, Tuyen & Doan, Tinh & Vu, Huong & Nguyen, Hien, 2018. "The Impact of Public Governance on Household Income: A Quantile Panel Analysis," MPRA Paper 90415, University Library of Munich, Germany, revised 08 Mar 2018.
    2. Ayoki, Milton, 2020. "The employment effects of trade policy reform in Myanmar," MPRA Paper 98090, University Library of Munich, Germany.
    3. Gyasi, Genevieve, 2020. "The Impact of Trade Agreement Policy on Employment," MPRA Paper 101307, University Library of Munich, Germany.
    4. Huy Hoang Nguyen & Quang Hoan Truong, 2022. "The Nexus between Inward Foreign Direct Investment and Global Value Chains in Developing Countries: A Case Study of Viet Nam," Working Papers DP-2021-51, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Sèna Kimm Gnangnon, 2020. "Aid for Trade and sectoral employment diversification in recipient-countries," Economic Change and Restructuring, Springer, vol. 53(2), pages 265-295, May.
    6. Maria Llop, 2022. "Quantifying the employment impacts of gross exports: a global accounting perspective," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-17, December.

    More about this item

    Keywords

    International Trade; Labor Demand; Northwest; Vietnam;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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