A model of firm heterogeneity in factor intensities and international trade
Empirical evidence suggests that exporters – besides being more productive – are significantly more skilled labor intensive than non–exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export g...
| Main Authors: | , , |
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| Format: | Article |
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Wiley
2015
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| Online Access: | https://eprints.nottingham.ac.uk/32922/ |
| _version_ | 1848794520030806016 |
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| author | Emami Namini, Julian Facchini, Giovanni Lopez, Ricardo |
| author_facet | Emami Namini, Julian Facchini, Giovanni Lopez, Ricardo |
| author_sort | Emami Namini, Julian |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Empirical evidence suggests that exporters – besides being more productive – are significantly more skilled labor intensive than non–exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export growth increases competition for skilled labor. This leads to the exit of some of the skilled labor intensive firms, while benefitting unskilled labor intensive ones. Second, within the group of firms with the same factor intensities, the reallocation of factors is towards the exporters. We show that the increased competition for skilled labor dampens the positive effect of trade liberalization on sector–wide TFP and real income. |
| first_indexed | 2025-11-14T19:17:29Z |
| format | Article |
| id | nottingham-32922 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:17:29Z |
| publishDate | 2015 |
| publisher | Wiley |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-329222020-05-04T20:06:22Z https://eprints.nottingham.ac.uk/32922/ A model of firm heterogeneity in factor intensities and international trade Emami Namini, Julian Facchini, Giovanni Lopez, Ricardo Empirical evidence suggests that exporters – besides being more productive – are significantly more skilled labor intensive than non–exporters. In a setting which captures both these features, we show that the firm selection induced by trade liberalization works along two dimensions. First, export growth increases competition for skilled labor. This leads to the exit of some of the skilled labor intensive firms, while benefitting unskilled labor intensive ones. Second, within the group of firms with the same factor intensities, the reallocation of factors is towards the exporters. We show that the increased competition for skilled labor dampens the positive effect of trade liberalization on sector–wide TFP and real income. Wiley 2015-11 Article PeerReviewed Emami Namini, Julian, Facchini, Giovanni and Lopez, Ricardo (2015) A model of firm heterogeneity in factor intensities and international trade. Canadian Journal of Economics, 48 (4). pp. 1456-1480. ISSN 1540-5982 Firm dynamics two–factor trade model firm heterogeneity in factor intensities http://onlinelibrary.wiley.com/doi/10.1111/caje.12150/full doi:10.1111/caje.12150 doi:10.1111/caje.12150 |
| spellingShingle | Firm dynamics two–factor trade model firm heterogeneity in factor intensities Emami Namini, Julian Facchini, Giovanni Lopez, Ricardo A model of firm heterogeneity in factor intensities and international trade |
| title | A model of firm heterogeneity in factor intensities and international trade |
| title_full | A model of firm heterogeneity in factor intensities and international trade |
| title_fullStr | A model of firm heterogeneity in factor intensities and international trade |
| title_full_unstemmed | A model of firm heterogeneity in factor intensities and international trade |
| title_short | A model of firm heterogeneity in factor intensities and international trade |
| title_sort | model of firm heterogeneity in factor intensities and international trade |
| topic | Firm dynamics two–factor trade model firm heterogeneity in factor intensities |
| url | https://eprints.nottingham.ac.uk/32922/ https://eprints.nottingham.ac.uk/32922/ https://eprints.nottingham.ac.uk/32922/ |