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Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?

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  • Almeida, Rita K.

    (World Bank)

Abstract

This paper asks whether the increased openness and technological innovation in East Asia have contributed to an increased demand for skills in the region. We explore a unique firm level data set across eight countries. Our results strongly support the idea that greater openness and technology adoption have increased the demand for skills, especially in middle income countries. Moreover, while the presence in international markets has been skill enhancing for most middle income countries, this has not been the case for manufacturing firms operating in China and in low-income countries. If international integration in the region intensifies further and technology continues to be skilled biased, policies aimed at mitigating skills shortages in the region should produce continual and persistent increases in skills.

Suggested Citation

  • Almeida, Rita K., 2009. "Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?," IZA Discussion Papers 4474, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4474
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    More about this item

    Keywords

    firm level data; exports; foreign direct investment; demand for skills;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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