Trade costs in services: Firm survival, firm growth and implied changes in employment

Arbeitspapier

This paper provides new insight into the firm-level employment impacts of trade cost changes at the industry level in the Austrian services sector. We apply a two-part model of firm survival (exit) and firm growth. Separate regressions for firm entry rates at the industry-region level complete the picture of total trade-induced net job creation. We implement the trade cost measure introduced by Chen and Novy (2011) and base it on own estimates of industry specific substitution elasticities. Falling trade costs in the Austrian services sector over the period 2000 to 2014 resulted in net job creation of about 19,000 jobs accounting for 9.5 percent of overall job flows in the sector. The smallest and least productive firms contract while large and productive firms expand as predicted by theory. Most adjustments occur at the extensive margin due to changes in the probability of firm survival.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: WIFO Working Papers ; No. 593

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Statistical Simulation Methods: General ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation ; Empirical Studies of Trade ; Trade and Labor Market Interactions ; Economic Impacts of Globalization: Labor ; Labor Force and Employment, Size, and Structure ; Firm Behavior: Theory ; Firm Objectives, Organization, and Behavior: General ; Industry Studies: Services: General
• Thema: Services trade ; Trade costs ; Elasticity of substitution ; Firm-level evidence ; Heterogenous firms ; Gravity model ; Job ows ; Trade and employment

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Christen, Elisabeth ; Pfaffermayr, Michael ; Wolfmayr, Yvonne
• Ereignis: Veröffentlichung
• (wer): Austrian Institute of Economic Research (WIFO)
• (wo): Vienna
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/220076
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ