Exports, Export Destinations, and Skills
This paper explores the links between exports, export destinations and skill utilization by firms. The authors identify two mechanisms behind these links, which we integrate into a unified theory of export destinations and skills. First, exporting...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English |
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2013
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| Online Access: | http://documents.worldbank.org/curated/en/2010/05/16400586/exports-export-destinations-skills-exports-export-destinations-skills http://hdl.handle.net/10986/13261 |
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okr-10986-132612021-04-23T14:03:03Z Exports, Export Destinations, and Skills World Bank ACCOUNTING AGGREGATE DEMAND AGRICULTURAL COMMODITIES BILATERAL TRADE CAPACITY CONSTRAINTS COMMODITIES COMPARATIVE ADVANTAGE CONSTANT RETURNS TO SCALE CONSUMERS CURRENCY CURRENCY DEVALUATION DELIVERY OF GOODS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLES ECONOMETRICS ECONOMIC GROWTH ECONOMIC RESEARCH EFFICIENCY WAGES EMPLOYMENT ENDOGENOUS VARIABLES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT EXPORT MARKET EXPORT MARKETS EXPORT SHARE EXPORT SHARES EXPORTER EXPORTERS EXPORTS EXPOSURE FINANCIAL CRISIS FIRM PERFORMANCE FIXED COSTS FOREIGN MARKETS FOREIGN TRADE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION HOMOGENEOUS GOODS INCOME INCOME GROUPS INSTRUMENT INTERNATIONAL BUSINESS INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR TURNOVER LABOR UTILIZATION LOCAL MARKETS LOW-INCOME COUNTRIES MACROECONOMIC EFFECTS MARGINAL COST MARGINAL COSTS MARGINAL UTILITY MARKET ENTRY MARKET PENETRATION MARKET SIZE MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MONOPOLISTIC COMPETITION NEW MARKETS OPTIMIZATION OUTPUT OUTSOURCING POLITICAL ECONOMY PRICE DISCRIMINATION PRODUCT DIFFERENTIATION PRODUCTION PROCESS PRODUCTIVITY PROFIT SHARING REGRESSION ANALYSIS RETURNS RETURNS TO SCALE SEMISKILLED WORKERS SKILLED LABOR SKILLED WORKERS TAX TRADE LIBERALIZATION TRADING UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION VALUATIONS VALUE ADDED VARIABLE COST WAGES This paper explores the links between exports, export destinations and skill utilization by firms. The authors identify two mechanisms behind these links, which we integrate into a unified theory of export destinations and skills. First, exporting to high-income countries requires quality upgrades that are skill-intensive (Verhoogen, 2008). Second, exporting in general, and exporting to high-income destinations in particular, requires services like distribution, transportation, and advertising, activities that are also intensive in skilled labor (Matsuyama, 2007). Both theories suggest a skill-bias in export destinations: firms that export to high-income destinations hire more skills and pay higher wages than firms that export to middle-income countries or that sells domestically. The authors test the theory using a panel of manufacturing Argentine firms. The data cover the period 1998-2000 and thus span the Brazilian currency devaluation of 1999. The authors use the exogenous changes in exports and export destinations brought about by this devaluation in a major export partner to identify the causal effect of exporting and of exporting to high-income countries on skill utilization. The authors fine that Argentine firms exporting to high-income countries hired a higher proportion of skilled workers and paid higher average wages than other exporters (to non high-income countries) and domestic firms. Instead, the authors cannot identify any causal effect of exporting per se on either skill utilization or average wages. 2013-04-23T15:40:37Z 2013-04-23T15:40:37Z 2010-05 http://documents.worldbank.org/curated/en/2010/05/16400586/exports-export-destinations-skills-exports-export-destinations-skills http://hdl.handle.net/10986/13261 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work Latin America & Caribbean Latin America |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING AGGREGATE DEMAND AGRICULTURAL COMMODITIES BILATERAL TRADE CAPACITY CONSTRAINTS COMMODITIES COMPARATIVE ADVANTAGE CONSTANT RETURNS TO SCALE CONSUMERS CURRENCY CURRENCY DEVALUATION DELIVERY OF GOODS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLES ECONOMETRICS ECONOMIC GROWTH ECONOMIC RESEARCH EFFICIENCY WAGES EMPLOYMENT ENDOGENOUS VARIABLES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT EXPORT MARKET EXPORT MARKETS EXPORT SHARE EXPORT SHARES EXPORTER EXPORTERS EXPORTS EXPOSURE FINANCIAL CRISIS FIRM PERFORMANCE FIXED COSTS FOREIGN MARKETS FOREIGN TRADE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION HOMOGENEOUS GOODS INCOME INCOME GROUPS INSTRUMENT INTERNATIONAL BUSINESS INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR TURNOVER LABOR UTILIZATION LOCAL MARKETS LOW-INCOME COUNTRIES MACROECONOMIC EFFECTS MARGINAL COST MARGINAL COSTS MARGINAL UTILITY MARKET ENTRY MARKET PENETRATION MARKET SIZE MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MONOPOLISTIC COMPETITION NEW MARKETS OPTIMIZATION OUTPUT OUTSOURCING POLITICAL ECONOMY PRICE DISCRIMINATION PRODUCT DIFFERENTIATION PRODUCTION PROCESS PRODUCTIVITY PROFIT SHARING REGRESSION ANALYSIS RETURNS RETURNS TO SCALE SEMISKILLED WORKERS SKILLED LABOR SKILLED WORKERS TAX TRADE LIBERALIZATION TRADING UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION VALUATIONS VALUE ADDED VARIABLE COST WAGES |
| spellingShingle |
ACCOUNTING AGGREGATE DEMAND AGRICULTURAL COMMODITIES BILATERAL TRADE CAPACITY CONSTRAINTS COMMODITIES COMPARATIVE ADVANTAGE CONSTANT RETURNS TO SCALE CONSUMERS CURRENCY CURRENCY DEVALUATION DELIVERY OF GOODS DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLES ECONOMETRICS ECONOMIC GROWTH ECONOMIC RESEARCH EFFICIENCY WAGES EMPLOYMENT ENDOGENOUS VARIABLES EQUIPMENT EXCHANGE RATE EXCHANGE RATES EXPORT EXPORT MARKET EXPORT MARKETS EXPORT SHARE EXPORT SHARES EXPORTER EXPORTERS EXPORTS EXPOSURE FINANCIAL CRISIS FIRM PERFORMANCE FIXED COSTS FOREIGN MARKETS FOREIGN TRADE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GLOBALIZATION HOMOGENEOUS GOODS INCOME INCOME GROUPS INSTRUMENT INTERNATIONAL BUSINESS INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR FORCE LABOR MARKET LABOR TURNOVER LABOR UTILIZATION LOCAL MARKETS LOW-INCOME COUNTRIES MACROECONOMIC EFFECTS MARGINAL COST MARGINAL COSTS MARGINAL UTILITY MARKET ENTRY MARKET PENETRATION MARKET SIZE MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MONOPOLISTIC COMPETITION NEW MARKETS OPTIMIZATION OUTPUT OUTSOURCING POLITICAL ECONOMY PRICE DISCRIMINATION PRODUCT DIFFERENTIATION PRODUCTION PROCESS PRODUCTIVITY PROFIT SHARING REGRESSION ANALYSIS RETURNS RETURNS TO SCALE SEMISKILLED WORKERS SKILLED LABOR SKILLED WORKERS TAX TRADE LIBERALIZATION TRADING UNSKILLED LABOR UNSKILLED WORKERS UTILITY FUNCTION VALUATIONS VALUE ADDED VARIABLE COST WAGES World Bank Exports, Export Destinations, and Skills |
| geographic_facet |
Latin America & Caribbean Latin America |
| description |
This paper explores the links between
exports, export destinations and skill utilization by firms.
The authors identify two mechanisms behind these links,
which we integrate into a unified theory of export
destinations and skills. First, exporting to high-income
countries requires quality upgrades that are skill-intensive
(Verhoogen, 2008). Second, exporting in general, and
exporting to high-income destinations in particular,
requires services like distribution, transportation, and
advertising, activities that are also intensive in skilled
labor (Matsuyama, 2007). Both theories suggest a skill-bias
in export destinations: firms that export to high-income
destinations hire more skills and pay higher wages than
firms that export to middle-income countries or that sells
domestically. The authors test the theory using a panel of
manufacturing Argentine firms. The data cover the period
1998-2000 and thus span the Brazilian currency devaluation
of 1999. The authors use the exogenous changes in exports
and export destinations brought about by this devaluation in
a major export partner to identify the causal effect of
exporting and of exporting to high-income countries on skill
utilization. The authors fine that Argentine firms exporting
to high-income countries hired a higher proportion of
skilled workers and paid higher average wages than other
exporters (to non high-income countries) and domestic firms.
Instead, the authors cannot identify any causal effect of
exporting per se on either skill utilization or average wages. |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Exports, Export Destinations, and Skills |
| title_short |
Exports, Export Destinations, and Skills |
| title_full |
Exports, Export Destinations, and Skills |
| title_fullStr |
Exports, Export Destinations, and Skills |
| title_full_unstemmed |
Exports, Export Destinations, and Skills |
| title_sort |
exports, export destinations, and skills |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2010/05/16400586/exports-export-destinations-skills-exports-export-destinations-skills http://hdl.handle.net/10986/13261 |
| _version_ |
1764420926253826048 |