International Trade and Employment: A Quantile Regression Approach

Abstract

Existing studies on the relationship between international trade and manufacturing employment often use a mean regression approach and focus mainly on developed countries. Few studies have applied a quantile regression approach to examine this relationship in developing countries. To fill the gap, this study considers, for the first time, the impact of rising international trade on employment in a developing country, Vietnam. Using an unbalanced panel dataset for the 2010~2015 period, we find a positive linkage between international trade and firm employment when ordinary least square is used. However, by using a fixed-effect quantile approach, we find that international trade is negatively linked with employment for firms in the low employment percentile but positively related with firms in the high employment percentile. Our results also show that previous studies at the national or industry level may have produced biased results by not controlling for the heterogeneity of firm characteristics. JEL Classifications: F1, F14

The Impact of Export on Employment: Panel Data Analysis for Regional Base in Turkey

“…ECM results revealed a positive relationship between exports and female employment. Similarly, Ha and Tran (2017), investigated the relationship between the number of employees of the firms operating in manufacturing and manufacturing via the panel data method for the period 2010-2015. The results showed that exports affected employment positively.…”

Heterogeneous impacts of provincial governance on household welfare in Vietnam

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Aid for Trade and Employment in Developing Countries: An Empirical Evidence

“…Recent studies include for example, Djankov and Ramalho (), Aydiner‐Avsar and Onaran (), Hollweg et al . (), Gozgor (), Ha and Tran (), Fugazza et al . ().…”

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