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Does trade foster employment growth in emerging markets? Evidence from Turkey

  • Alessia LO TURCO

    ()

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Daniela MAGGIONI

    ()

    (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

This work investigates the impact of importing, exporting and two-way trading on the firm labour demand in Turkish manufacturing. Adopting multiple propensity score matching techniques and Difference in Difference estimator, we support the positive internationalisation effects on the firm employment growth 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, as measured by the R&D worker share. The disclosed employment effect reflects the large positive impact of firminternationalisation on its production scale.

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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 383.

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Date of creation: Oct 2012
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Handle: RePEc:anc:wpaper:383
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