Trade and Human Capital Accumulation [electronic resource] : Evidence From U.S. Immigrants / Domeland, Dorte
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TextPublication details: Washington, D.C., The World Bank, 2007Description: 1 online resource (54 p.)Subject(s): Capital Accumulation | Comparative Advantage | Cost | Country Strategy and Performance | Debt Markets | Demand | Economic Growth | Economic Theory and Research | Economics | Education | Educational Sciences | Emerging Markets | Finance and Financial Sector Development | Financial Literacy | Free Trade | GDP | Gross Domestic Product | Health, Nutrition and Population | Home Country | Human Capital | International Trade | Investment | Labor | Labor Markets | Macroeconomics and Economic Growth | Market | Political Economy | Population Policies | Poverty Reduction | Private Sector Development | Pro-Poor Growth | Production | Productivity | Resources | Social Protections and Labor | SupplyAdditional physical formats: Domeland, Dorte.: Trade and Human Capital Accumulation.Online resources: Click here to access online Abstract: This study provides empirical evidence that trade increases on-the-job human capital accumulation by estimating the effect of home country openness on estimated returns to home country experience of U.S. immigrants. The positive effect of trade on on-the-job human capital accumulation remains significant when controlling for GDP, educational attainment, and institutional quality. It is not the result of self-selection, heterogeneity in returns to experience, English-speaking origin, or cultural background. The effect persists when restricting the sample to non-OECD countries, thereby resolving the theoretical ambiguity of whether trade increases or decreases learning-by-doing. The role of trade in generating economic growth is therefore likely to be more important than generally considered.
This study provides empirical evidence that trade increases on-the-job human capital accumulation by estimating the effect of home country openness on estimated returns to home country experience of U.S. immigrants. The positive effect of trade on on-the-job human capital accumulation remains significant when controlling for GDP, educational attainment, and institutional quality. It is not the result of self-selection, heterogeneity in returns to experience, English-speaking origin, or cultural background. The effect persists when restricting the sample to non-OECD countries, thereby resolving the theoretical ambiguity of whether trade increases or decreases learning-by-doing. The role of trade in generating economic growth is therefore likely to be more important than generally considered.
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