Exporting Firms Create More Jobs Than Domestically Oriented Ones...Study

SEOUL, KOREA - A study said exporting companies tend to create more jobs than those engaged mostly in the domestic market. In terms of wage level and productivity, the study contended, exporters are superior to domestic counterparts. The Institute for International Trade of the Korea International Trade Association published on July 6 a report claiming that the worker growth rate for exporting companies was 3.8 times higher than that for domestically oriented firms.

The report, based on panel data from the National Statistical Office on job figures of 6,573 firms, compared job numbers from 2006 to 2012. Based on the definition of an exporting company with the share of exports in total sales revenue over and above 36.2 percent, the report categorized the firms into exporting (14.9%) and domestically oriented (85.1%) companies.

For example, the number of workers in exporting companies rose 33.3 percent for the six-year period between 2006 and 2012 while that for domestic ones fell short of 8.7 percent. Of the total net increase job number of 373,000 during the period, exporting firms accounted for 53.6 percent (202,000). In terms of regular full-time job numbers, exporting companies (94.8%) were higher than that for domestic ones (86.6%).

As for productivity, exporters were much superior to domestic firms. As of 2012, per-employee sales revenue of exporting firms was 1,040 million won, 2.4 times higher than that for domestic ones (440 million won). Per-capita sales revenue of exporters rose 57.2 percent from 2006 to 2012, compared to 34.2 percent for domestic ones.

Source : The Korea Economic Daily

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