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Impact of Trade on Productivity of Skilled and Unskilled Intensive Industries: A Cross-Country Investigation

Author

Listed:
  • Sohrab Abizadeh

    () (Department of Economics, University of Winnipeg)

  • Manish Pandey

    () (Department of Economics, University of Winnipeg)

  • Mehmet Serkan Tosun

    () (University of Nevada, Reno)

Abstract

This paper examines the effect of trade openness on the productivity of skilled labor intensive and unskilled labor intensive industries in the group of 20 OECD countries. Using panel data and fixed effects approach, we find that skilled workers’ relative gains in productivity exceed those of their unskilled counterpart. Given this differential impact of trade openness on the relative productivity of the skilled and unskilled intensive industries, our findings lend support to the conclusions of past studies that skilled labor is likely to be more pro trade than unskilled labor.

Suggested Citation

  • Sohrab Abizadeh & Manish Pandey & Mehmet Serkan Tosun, 2007. "Impact of Trade on Productivity of Skilled and Unskilled Intensive Industries: A Cross-Country Investigation," Working Papers 07-007, University of Nevada, Reno, Department of Economics;University of Nevada, Reno , Department of Resource Economics.
  • Handle: RePEc:unr:wpaper:07-007
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    File URL: http://www.business.unr.edu/econ/wp/papers/UNRECONWP07007.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
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    2. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    4. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 613-646.
    5. Rodrik, Rani, 1995. "Trade and industrial policy reform," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 45, pages 2925-2982 Elsevier.
    6. Beñat Bilbao-Osorio & Andrés Rodríguez-Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Wiley Blackwell, vol. 35(4), pages 434-455.
    7. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    8. Atul Dar & Sal Amirkhalkhali, 2003. "On the impact of trade openness on growth: further evidence from OECD countries," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1761-1766.
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    11. Sohrab Abizadeh & Mehmet Serkan Tosun, 2007. "Open trade and skilled and unskilled labor productivity in developing countries: A panel data analysis," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(3), pages 383-399.
    12. Zhu, Susan Chun & Trefler, Daniel, 2005. "Trade and inequality in developing countries: a general equilibrium analysis," Journal of International Economics, Elsevier, vol. 65(1), pages 21-48, January.
    13. Edward E. Leamer, 1996. "In Search of Stolper-Samuelson Effects on U.S. Wages," NBER Working Papers 5427, National Bureau of Economic Research, Inc.
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    Cited by:

    1. repec:bla:worlde:v:40:y:2017:i:7:p:1494-1512 is not listed on IDEAS
    2. Basant Kapur, 2015. "A symmetric Heckscher–Ohlin model of endogenous growth," Journal of Economics, Springer, vol. 116(3), pages 183-209, November.

    More about this item

    Keywords

    Trade openness; Skilled intensive industries; Unskilled intensive industries; Productivity;

    JEL classification:

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

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