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The impact of external factors on job creation and destruction in the Colombian manufacturing sector

Author

Listed:
  • Ligia Melo

    (Banco de la República de Colombia)

  • Carlos Ballesteros

    (Banco de la República de Colombia)

Abstract

The aim of this paper is to study the impact of external factors on employment in the manufacturing sector in Colombia, using the job flows approach. In particular, we analyze the effects of the real exchange rate, foreign direct investment and the degree of openness of firms on job creation and destruction. We find that an increment in the real exchange rate increases job creation and decreases job destruction, suggesting a positive impact on net employment growth in the sector. Also, manufacturing firms that trade actively in the international market magnify the effect of the real exchange rate on employment flows. Finally, manufacturing employment is negatively affected by the Dutch disease phenomenon.

Suggested Citation

  • Ligia Melo & Carlos Ballesteros, 2014. "The impact of external factors on job creation and destruction in the Colombian manufacturing sector," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 81, pages 155-186, Julio - D.
    • Handle: RePEc:lde:journl:y:2014:i:81:p:155-186
    DOI: 10.17533/udea.le.n81a6
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    References listed on IDEAS

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    Cited by:

    1. Melo, Ligia & Ballesteros, Carlos, 2014. "Impacto de los factores externos sobre la creación y destrucción de empleo en el sector manufacturero colombiano," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 81, pages 155-186, April.

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    More about this item

    Keywords

    Job flows; real exchange rate; manufacturing sector; Colombia;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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