Employment effects of trade in intermediate and final goods: An empirical assessment

Abstract

The steady growth of international trade in intermediate goods and services has made the relationship between trade and the international division of labour more complex. For 39 countries, the author decomposes the employment effects of international trade into five components, namely, the labour content of - or employment generated by - (1) exports; (2) imports; (3) the import content of exports; (4) the export content of imports; and (5) the third-country import content of imports. He shows that in 2009, trade in intermediate goods accounted for some 88 million jobs - 14 per cent of all jobs generated by international trade - while the import content of exports accounted for 44 million jobs.