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Trade Openness, Relative Demand of Skilled Workers and Technological Change in Tunisia, 1998–2002

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  • Monia Ghazali

    () (Institut Supérieur de Finance et Fiscalité de Sousse)

Abstract

This paper investigates the relationship between technological change and the relative demand of skilled workers in Tunisia. For this purpose, we use a firm level database drawn from the national annual survey report on firms (NASRF) provided by the Tunisian National Institute of Statistics (TNIS). The annual data covers 635 firms from manufacturing and non- manufacturing sectors over the period 1998–2002. The estimation of the demand for skilled labor is based on the estimation of a translog cost function. We control for potential endogeneity issues and we give empirical evidence supporting the trade-induced technological change theoretical intuition. Our empirical results confirm the existence of a trade-induced technological change that contributes to increasing the relative demand for skilled workers. Yet, the relationship between trade and technology deserves deeper interest. Further empirical research on transmission channels would reinforce current studies on skill- biased technological change.

Suggested Citation

  • Monia Ghazali, 2010. "Trade Openness, Relative Demand of Skilled Workers and Technological Change in Tunisia, 1998–2002," Working Papers 554, Economic Research Forum, revised 10 Jan 2010.
  • Handle: RePEc:erg:wpaper:554
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