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Openness and Technological Innovation in East Asia: Have They Increased the Demand for Skills?

Rita K. Almeida ()
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Rita K. Almeida: World Bank

No 4474, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: This paper asks whether the increased openness and technological innovation in East Asia have contributed to an increased demand for skills in the region. We explore a unique firm level data set across eight countries. Our results strongly support the idea that greater openness and technology adoption have increased the demand for skills, especially in middle income countries. Moreover, while the presence in international markets has been skill enhancing for most middle income countries, this has not been the case for manufacturing firms operating in China and in low-income countries. If international integration in the region intensifies further and technology continues to be skilled biased, policies aimed at mitigating skills shortages in the region should produce continual and persistent increases in skills.

Keywords: demand for skills; foreign direct investment; exports; firm level data (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-int and nep-sea
Date: 2009-10

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