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"The buck stops with the executives": Assessing the impact of workforce composition and cultural distance on French firms' exports

Author

Listed:
  • Raphaël Chiappini

    (UB - Université de Bordeaux, Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Yves Jégourel

    (UB - Université de Bordeaux, Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux, Policy Center for the New South)

Abstract

This article analyzes the impact of firms' workforce composition on cultural distance and export performance. On the one hand, empirical literature has shown that there are dark trade costs that hinder trade performance, among which is cultural distance; on the other hand, the literature has shown that firms' export performance is positively correlated with employees’ qualifications. Using a unique database of 59,606 French firms, we reconcile these two streams of literature by estimating a structural gravity model. We demonstrate that hiring more executives decreases the negative impact of cultural distance and that firms with a higher share of executives have a higher probability of exporting and a higher level of recorded exports. As exporting involves practicing foreign languages or managing intercultural differences, firms with a greater reliance on skilled workers who exhibit this “export culture” have a higher probability of exporting, export more products and benefit from higher export values.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Raphaël Chiappini & Yves Jégourel, 2021. ""The buck stops with the executives": Assessing the impact of workforce composition and cultural distance on French firms' exports," Post-Print halshs-03118475, HAL.
    • Handle: RePEc:hal:journl:halshs-03118475
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    Cited by:

    1. Zhou, Ying & Fan, Zhaobin & Anwar, Sajid, 2023. "Birthplace diversity of immigrants, capabilities and export structure transformation," Economic Modelling, Elsevier, vol. 119(C).
    2. Raphaël Chiappini & Cyrielle Gaglio, 2024. "Digital intensity, trade costs and exports' quality upgrading," The World Economy, Wiley Blackwell, vol. 47(2), pages 709-747, February.
    3. repec:bcp:journl:v:9:y:2025:i:10:p:7075-7089 is not listed on IDEAS
    4. Liu, Ailan & Lu, Cuicui & Wang, Zhixuan, 2021. "Does cultural distance hinder exports?: A comparative study of China and the United States," Economic Modelling, Elsevier, vol. 105(C).

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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