Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 09-9: Employment Growth and International Trade: A Small Open Economy Perspective

Rikke Ibsen , Frederic Warzynski () and Niels Westergård-Nielsen ()
Additional contact information
Rikke Ibsen: Department of Economics, Aarhus School of Business, Postal: Frichshuset Hermodsvej 22, 8230 Åbyhøj, Denmark
Frederic Warzynski: Department of Economics, Aarhus School of Business, Postal: Frichshuset Hermodsvej 22, 8230 Åbyhøj, Denmark
Niels Westergård-Nielsen: Department of Economics, Aarhus School of Business, Postal: Frichshuset Hermodsvej 22, 8230 Åbyhøj, Denmark

Abstract: In this paper, we use a detailed dataset containing information about all international trade transactions of the population of Danish firms over more than a decade to analyze the relationship between export and import decisions and employment growth. We further distinguish between imports of final goods and imports of intermediate products. We find that both imports and exports decisions are positively related to employment growth. Interestingly, both finished goods and intermediate goods imports have a positive link. We also control for the re-exporting process, i.e. firms importing final goods to re-export them afterwards.

Keywords: international trade; employment growth; offshoring

JEL-codes: F16

33 pages, May 1, 2009

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09-9_fwanwn.pdf PDF-file 

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