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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Bibliographic Details
Main Author: World Bank
Format: Foreign Trade, FDI, and Capital Flows Study
Language:English
Published: 2013
Subjects:
TAX
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
id okr-10986-13261
recordtype oai_dc
spelling 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
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building 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
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