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          Institute: MPI für Ökonomik     Collection: Entrepreneurship, Growth and Public Policy Group     Display Documents

ID: 458948.0, MPI für Ökonomik / Entrepreneurship, Growth and Public Policy Group
The Role of “Skill enhancing Trade” in Brazil : Some Evidence from Microdata
Authors:Araújo, Bruno Cesar; Bogliacino, Francesco; Vivarelli, Marco
Date of Publication (YYYY-MM-DD):2009-06
Total Number of Pages:22
Title of Series:Jena economic research papers (JERP)
Issue / Number:2009-038
Corporate Body (Series Editor):Friedrich Schiller Universität Jena; Max-Planck-Institut für Ökonomik
Review Status:Internal review
Audience:Not Specified
Abstract / Description:Brazil was characterised by a marked process of trade liberalisation in the ‘90s, resulting in a dramatic increase in the volumes of exports and imports since the year 2000.Over the same period, the relative demand for skilled labour has increased substantially. To investigate whether these two simultaneous phenomena are linked is the purpose of this paper.
More in particular, this study focuses on the impact of trade openness and technology transfer on the relative demand for skilled labour in Brazilian manufacturing firms, using a unique panel database (resulting from merging three different statistical sources) of Brazilian manufacturing firms over the period 1997-2005.
Descriptive statistics show that the increase in the relative demand for skilled labour was mainly driven by the within-industry variation, supporting the hypothesis that technology (and in particular technological transfer from richer countries) may have played a role in determining the skill-upgrading of Brazilian manufacturing firms.
The econometric results further support this hypothesis. Indeed, the estimations show that domestic capital is a complement of the skilled workers and that imported capital goods clearly act as a skill-enhancing component of trade. Hence, our results support the view that embodied technological change through the importation of capital goods has involved a clear skill-biased impact in Brazilian manufacturing.
Free Keywords:skill-enhancing trade; skill-bias; panel data; Brazil
Classification / Thesaurus:JEL Classification: O33; O54; F16
External Publication Status:published
Document Type:Paper
Communicated by:David B. Audretsch
Affiliations:MPI für Ökonomik/Abteilung Entrepreneurship, Growth and Public Policy
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