Globalization, Productivity Growth, and Labor Compensation

Christian Dreger, Marius Fourné () and Oliver Holtemöller
Additional contact information
Marius Fourné: IWH Halle

No 16010, IZA Discussion Papers from IZA Network @ LISER

Abstract: We analyse how changes in international trade integration affect productivity and the functional income distribution. To account for endogeneity, we construct a leave-out measure for international trade integration for country-industry pairs using international input-output tables. First, we corroborate on the country-industry level that international trade integration increases productivity. Second, we show that international trade integration is associated with higher labour shares in advanced countries but with lower labour shares in manufacturing industries in emerging markets. Finally, we briefly discuss the implications of our results for a possible throwback in international trade integration due to experiences from recent crises.

Keywords: global value chains; income distribution; globalization; labor share; productivity (search for similar items in EconPapers)
JEL-codes: F4 F6 J3 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2023-03
New Economics Papers: this item is included in nep-eff, nep-ifn, nep-int, nep-lma and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp16010.pdf (application/pdf)

Related works:
Working Paper: Globalization, productivity growth, and labor compensation (2025)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp16010

Access Statistics for this paper

More papers in IZA Discussion Papers from IZA Network @ LISER Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().