Job Creation and Trade in Manufactures: Industry Level Analysis Across Countries

Admasu Shiferaw () and Degol Hailu
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Degol Hailu: United Nations Development Program (UNDP), New York

No 167, Working Papers from Department of Economics, College of William and Mary

Abstract: This paper examines industry level responses of manufacturing employment in the context of globalization using a large sample of developed, developing and transition economies. We find that developing countries need atypically high rates of value added growth (about 10%) to increase manufacturing employment appreciably (about 4%). The employment benefits of export-orientation are also modest even in "comparative advantage" industries of developing countries. However, diversifying the export basket contributes significantly to employment growth, particularly in the medium- and high-technology industries. Import-competition does not undermine employment growth in low-technology industries of developing countries while it displaces jobs in the same industries in OECD and transition economies. For developing countries, import-induced job losses are higher in the more capital-intensive medium-technology industries. Jobs in high-technology industries are less sensitive to imports with positive relationships observed in the OECD. Investment also complements job creation in lowtechnology industries of developing countries that have yet to industrialize.

Keywords: Labor Demand; Employment Elasticity; Manufacturing; Export Orientation; Import Competition (search for similar items in EconPapers)
JEL-codes: J21 L60 O14 O25 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2015-09-02
New Economics Papers: this item is included in nep-int and nep-tid
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http://economics.wm.edu/wp/cwm_wp167.pdf (application/pdf)

Related works:
Journal Article: Job creation and trade in manufactures: industry-level analysis across countries (2016)
Journal Article: Job creation and trade in manufactures: industry-level analysis across countries (2016)
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