Uploaded on 2020-07-24 by SHRUTHI. S

A rise in the number of jobs in the tradable sector – either because a new firm comes in or an existing firm increases its operations – might affect local employment of both non-tradable and tradable industries. First, more local jobs imply an increase in the local demand for nontradables (such as restaurants, real estate, cleaning services, legal services, retail, personal services, construction, etc.)……. Second, more local jobs in one industry might also affect employment in the remaining part of the local tradable sector. Local demand for intermediate inputs grows and this might foster employment in some other industries, if input providers are located in the same area.