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Imported Inputs and Skill Upgrading

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  • Rosario Crinò

    (University of Brescia, Centro Studi Luca d'Agliano and IAE-CSIC)

Abstract

This paper studies the effect of imported inputs on relative skilled labor demand. To this purpose, it uses firm-level data for 27 transition countries and propensity score matching techniques. The results show that importing inputs induces skill upgrading: according to a conservative estimate, it explains roughly one-quarter of the higher share of skilled employment observed at importers. The paper discusses possible mechanisms behind this result. In particular, it reports suggestive evidence that importing may lead firms to engage in skill-intensive activities, such as production of new goods, improvements in product quality and, to a lesser extent, R&D and technology adoption.

Suggested Citation

  • Rosario Crinò, 2011. "Imported Inputs and Skill Upgrading," Development Working Papers 323, Centro Studi Luca d'Agliano, University of Milano, revised 27 Dec 2011.
  • Handle: RePEc:csl:devewp:323
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    Cited by:

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    2. Irene Iodice & Chiara Tomasi, 2015. "Skill upgrading, wage gap and international trade: firm-level evidence for Italian manufacturing firms," LEM Papers Series 2015/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Bernhard Dachs & Bernd Ebersberger & Steffen Kinkel & Oliver Som, 2015. "The effects of production offshoring on R&D and innovation in the home country," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 9-31, March.
    4. Chin‐Yoong Wong & Yoke‐Kee Eng, 2022. "Renminbi Appreciation and China's Industrial Upgrading," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(3), pages 1-22, May.
    5. Fritsch, Ursula, 2015. "Is Offshoring Beneficial or Detrimental to Innovation in Developed Countries?," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112973, Verein für Socialpolitik / German Economic Association.
    6. David Aristei & Davide Castellani & Chiara Franco, 2013. "Firms’ exporting and importing activities: is there a two-way relationship?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(1), pages 55-84, March.
    7. Görg, Holger & Fritsch, Ursula, 2013. "Outsourcing, Offshoring and Innovation: Evidence from Firm-level Data for Emerging Economies," CEPR Discussion Papers 9603, C.E.P.R. Discussion Papers.
    8. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Does global value chain participation enhance domestic value‐added in exports? Evidence from emerging market economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1681-1694, April.

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    More about this item

    Keywords

    Imported Inputs; Relative Skilled Labor Demand; Firm-Level Data; Transition Countries; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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