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Article: Worker Training, Firm Productivity, and Trade Liberalization: Evidence from Chinese Firms

TitleWorker Training, Firm Productivity, and Trade Liberalization: Evidence from Chinese Firms
Authors
KeywordsWorker training
Firm productivity
Trade liberalization
JEL classification: F13, P51
Issue Date2017
PublisherWiley-Blackwell Publishing Ltd. The Journal's web site is located at http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1746-1049
Citation
The Developing Economies, 2017, v. 55 n. 3, p. 189-209 How to Cite?
AbstractThis paper discusses a novel mechanism—worker training—in relation to the effect of output trade liberalization on firm productivity. Using disaggregated Chinese firm‐level production data from 2004 to 2006, we find strong evidence that output trade liberalization boosts firm productivity. More importantly, after controlling for the firm's self‐selection in regards to investment in worker training, our extensive empirical research suggests the following findings. First, with fiercer import competition, firms experience a decrease in profitability and hence are less likely to invest in worker training. Second, less productive firms are more likely to train their workers, as otherwise they would collapse and exit from the market. The lower the firm productivity, the more is invested in the firm's worker training. Finally, the effect of output trade liberalization on firm productivity is more pronounced for firms with more training investment. Such results are robust regardless of various empirical specifications and different measures.
Persistent Identifierhttp://hdl.handle.net/10722/279023
ISSN
2019 Impact Factor: 0.84
2015 SCImago Journal Rankings: 0.200

 

DC FieldValueLanguage
dc.contributor.authorLiu, Q-
dc.contributor.authorQiu, L-
dc.contributor.authorYu, M-
dc.date.accessioned2019-10-21T02:18:12Z-
dc.date.available2019-10-21T02:18:12Z-
dc.date.issued2017-
dc.identifier.citationThe Developing Economies, 2017, v. 55 n. 3, p. 189-209-
dc.identifier.issn0012-1533-
dc.identifier.urihttp://hdl.handle.net/10722/279023-
dc.description.abstractThis paper discusses a novel mechanism—worker training—in relation to the effect of output trade liberalization on firm productivity. Using disaggregated Chinese firm‐level production data from 2004 to 2006, we find strong evidence that output trade liberalization boosts firm productivity. More importantly, after controlling for the firm's self‐selection in regards to investment in worker training, our extensive empirical research suggests the following findings. First, with fiercer import competition, firms experience a decrease in profitability and hence are less likely to invest in worker training. Second, less productive firms are more likely to train their workers, as otherwise they would collapse and exit from the market. The lower the firm productivity, the more is invested in the firm's worker training. Finally, the effect of output trade liberalization on firm productivity is more pronounced for firms with more training investment. Such results are robust regardless of various empirical specifications and different measures.-
dc.languageeng-
dc.publisherWiley-Blackwell Publishing Ltd. The Journal's web site is located at http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1746-1049-
dc.relation.ispartofThe Developing Economies-
dc.rightsPreprint This is the pre-peer reviewed version of the following article: [FULL CITE], which has been published in final form at [Link to final article using the DOI]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. Postprint This is the peer reviewed version of the following article: [FULL CITE], which has been published in final form at [Link to final article using the DOI]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.-
dc.subjectWorker training-
dc.subjectFirm productivity-
dc.subjectTrade liberalization-
dc.subjectJEL classification: F13, P51-
dc.titleWorker Training, Firm Productivity, and Trade Liberalization: Evidence from Chinese Firms-
dc.typeArticle-
dc.identifier.emailQiu, L: larryqiu@hku.hk-
dc.identifier.authorityQiu, L=rp01093-
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1111/deve.12136-
dc.identifier.scopuseid_2-s2.0-85028539126-
dc.identifier.hkuros308104-
dc.identifier.volume55-
dc.identifier.issue3-
dc.identifier.spage189-
dc.identifier.epage209-
dc.publisher.placeUnited Kingdom-

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