Trade and Productivity: The Family Connection Redux
Klaus Prettner () and
Holger Strulik ()
No 148, FIW Working Paper series from FIW
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)
New Economics Papers: this item is included in nep-bec, nep-eff, nep-gro and nep-int
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Journal Article: Trade and productivity: The family connection redux (2018)
Working Paper: Trade and productivity: The family connection redux (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:wsr:wpaper:y:2015:i:148
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