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Job creation, job destruction and firms’ international trade involvement

Author

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  • Mauro Pisu

    (National Bank of Belgium, Research Department)

Abstract

One of the most important predictions made in recent international trade literature based on heterogeneous firms concerns the within-industry job reallocation from firms not involved in international markets to those that are. This paper quantifies the extent of this reallocation using a dataset of Belgian manufacturing firms from 1998 to 2004 providing information on their international trading activities. The results suggest that, at three-digit industry levels, the shifts in employment between firms having different trading status account for 6 to 30 percent of total job reallocation. This effect is stronger for large than for small firms.

Suggested Citation

  • Mauro Pisu, 2008. "Job creation, job destruction and firms’ international trade involvement," Working Paper Research 130, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:200803-17
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    File URL: https://www.nbb.be/doc/ts/publications/wp/wp130en.pdf
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    References listed on IDEAS

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    Cited by:

    1. Blessing Atwine & Ibrahim Mike Okumu & John Bosco Nnyanzi, 2023. "What drives the dynamics of employment growth in firms? Evidence from East Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-25, December.
    2. Ch. Piette & M. Pisu, 2008. "Gross job flows and firms’ international activities," Economic Review, National Bank of Belgium, issue ii, pages 39-53, June.
    3. 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.
    4. 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.
    5. Elisabeth Christen & Michael Pfaffermayr & Yvonne Wolfmayr, 2019. "Trade Costs in Services. Firm Survival, Firm Growth and Implied Changes in Employment," WIFO Working Papers 593, WIFO.
    6. repec:zbw:rwirep:0228 is not listed on IDEAS

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    More about this item

    Keywords

    Heterogeneous firms; Job reallocation; Imports; Exports; FDI;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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