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Employment Growth and International Trade: A Small Open Economy Perspective

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Abstract

In this paper, we use a detailed dataset containing information about all international trade transactions of the population of Danish firms over more than a decade to analyze the relationship between export and import decisions and employment growth. We further distinguish between imports of final goods and imports of intermediate products. We find that both imports and exports decisions are positively related to employment growth. Interestingly, both finished goods and intermediate goods imports have a positive link. We also control for the re-exporting process, i.e. firms importing final goods to re-export them afterwards.

Suggested Citation

  • Ibsen, Rikke & Warzynski, Frederic & Westergård-Nielsen, Niels, 2009. "Employment Growth and International Trade: A Small Open Economy Perspective," Working Papers 09-9, University of Aarhus, Aarhus School of Business, Department of Economics.
  • Handle: RePEc:hhs:aareco:2009_009
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    File URL: http://www.hha.dk/nat/wper/09-9_fwanwn.pdf
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    Cited by:

    1. Daniel Baumgarten, 2010. "International Trade and Worker Turnover – Empirical Evidence for Germany," Ruhr Economic Papers 0228, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Joachim Wagner, 2011. "Productivity and International Firm Activities: What do we know?," Working Paper Series in Economics 194, University of Lüneburg, Institute of Economics.
    3. Jose Luis Groizard & Priya Ranjan & Jose Antonio Rodriguez-Lopez, 2013. "Offshoring, Exporting, and Jobs," Working Papers 121312, University of California-Irvine, Department of Economics.
    4. Joachim Wagner, 2016. "A survey of empirical studies using transaction level data on exports and imports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 215-225, February.
    5. Groizard, Jose L. & Ranjan, Priya & Rodriguez-Lopez, Antonio, 2014. "Offshoring and jobs: The myriad channels of influence," European Economic Review, Elsevier, vol. 72(C), pages 221-239.
    6. Baumgarten, Daniel, 2010. "International Trade and Worker Turnover – Empirical Evidence for Germany," Ruhr Economic Papers 228, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. repec:zbw:rwirep:0228 is not listed on IDEAS
    8. Ben Salha, Ousama, 2013. "Does economic globalization affect the level and volatility of labor demand by skill? New insights from the Tunisian manufacturing industries," Economic Systems, Elsevier, vol. 37(4), pages 572-597.

    More about this item

    Keywords

    international trade; employment growth; offshoring;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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