Trade and Productivity: The Family Connection Redux

Klaus Prettner and Holger Strulik

No 148, FIW Working Paper series from FIW

Abstract: We investigate the effects of human capital accumulation on trade and productivity by integrating a micro-founded education and fertility decision of households into a model of international trade with firm heterogeneity. Our theoretical framework leads to two testable implications: i) the export share of a country increases with the education level of its population, ii) the average profitability of firms located in a country also increases with the education level of its population. We find that these implications are supported by empirical evidence for a panel of OECD countries from 1960 to 2010.

Keywords: firm heterogeneity; international competiveness; education; fertility decline (search for similar items in EconPapers)
JEL-codes: F12 F14 I20 J11 (search for similar items in EconPapers)
Pages: 36
Date: 2015-03
New Economics Papers: this item is included in nep-bec, nep-eff, nep-gro and nep-int
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Related works:
Journal Article: Trade and productivity: The family connection redux (2018)
Working Paper: Trade and productivity: The family connection redux (2013)
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