The Role of International Trade in Employment Growth in Micro- and Small Enterprises: Evidence from Developing Asia
Krüger, Jens | August 2013
Abstract
This paper examines the role of international trade in employment growth in micro- and
small enterprises using a representative sample of manufacturing firms in six Southeast
Asian countries. After controlling for firm and individual characteristics as well as country
and sector dummies, participation in international trade plays a significant role in
explaining this growth, boosting firm-level growth by 3% per year on average. The fact
that firms start exporting quickly after their foundation suggests that reverse causality is
not an issue for our estimates. However, biases arising from unobserved heterogeneity
cannot be ruled out. Therefore, we exploit the fact that firms were exposed to
unexpected variation in real exchange rates between 2005 and 2008 to investigate the
causal relationship between trade and employment growth. The results are not
conclusive, but they do not suggest that the relationship is driven by unobserved
heterogeneity.
Citation
Krüger, Jens. 2013. The Role of International Trade in Employment Growth in Micro- and Small Enterprises: Evidence from Developing Asia. © Asian Development Bank. http://hdl.handle.net/11540/2307. License: CC BY 3.0 IGO.Keywords
Asian Development Bank
Development
Trade
Development Goals
Skills Development
Sustainable Development
Trade Flows
Trade And Development
Food Security And Trade
Trade Volume
Trade Potential
Trade Flows
External Trade
Industrial policy
New technology
Innovations
Industry
Export policy
Import policy
Development assistance
ADB
Curriculum development
Development assistance
Development aid
Development indicators
Development potential
Development models
Project appraisal
Performance appraisal
Regional development bank
Trade development
Import volume
Export volume
Capital
Business
Communication in rural development
Social participation
Occupational training
Partnership
Joint venture
System analysis
Labor and globalization
Labor policy
Regional trading blocs
Foreign trade and employment
Developing countries
Industrial priorities
Technological innovation
Technology transfer
Foreign trade regulation
Industrial relations
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Citable URI
http://hdl.handle.net/11540/2307Metadata
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