IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v11y2005i4p417-43210.1007-s11294-005-2278-4.html
   My bibliography  Save this article

Trade liberalization and the Labor Market Revisited

Author

Listed:
  • Priniti Panday

Abstract

This paper provides new insights in understanding the adjustments of the labor market to trade liberalization policies in an economy producing tradeables and nontradeables. The results of the paper indicate that the short-run effects of trade liberalization on wages, labor allocation and worker welfare is contingent on certain explicit production and demand conditions that exist in an economy. The production condition is related to the slope of the labor demand curve in a given economy and the demand condition is related to the difference in the cross-price elasticity of demand of nontradeables to the price of importables and exportables. The necessary combination of these conditions needed for trade liberalization to be welfare improving in the short run is explored. Copyright International Atlantic Economic Society 2005

Suggested Citation

  • Priniti Panday, 2005. "Trade liberalization and the Labor Market Revisited," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(4), pages 417-432, November.
    • Handle: RePEc:kap:iaecre:v:11:y:2005:i:4:p:417-432:10.1007/s11294-005-2278-4
    DOI: 10.1007/s11294-005-2278-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11294-005-2278-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11294-005-2278-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Njinkeu, Dominique, 1996. "Evaluation of the incentive structure: A survey and application to Cameroon," World Development, Elsevier, vol. 24(3), pages 557-568, March.
    2. Navaratne, N. M. C., 1991. "Who bears the incidence of import protection? Evidence from Sri Lanka," World Development, Elsevier, vol. 19(10), pages 1409-1419, October.
    3. Christopher Clague & David Greenaway, 1994. "Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 36-43, March.
    4. Mayer, Wolfgang, 1974. "Short-Run and Long-Run Equilibrium for a Small Open Economy," Journal of Political Economy, University of Chicago Press, vol. 82(5), pages 955-967, Sept./Oct.
    5. Greenaway, David, 1989. "Commercial Policy and Policy Conflict: An Evaluation of the Incidence of Protection in a Non-industrialized Economy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 57(2), pages 125-141, June.
    6. L.A. Sjaastad & K.W. Clements, 1981. "The Incidence of Protection: Theory and measurement," Economics Discussion / Working Papers 81-04, The University of Western Australia, Department of Economics.
    7. Neary, J Peter, 1978. "Short-Run Capital Specificity and the Pure Theory of International Trade," Economic Journal, Royal Economic Society, vol. 88(351), pages 488-510, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:kap:iaecre:v:11:y:2005:i:4:p:417-432 is not listed on IDEAS
    2. Clements, Kenneth W. & Fry, Renée, 2008. "Commodity currencies and currency commodities," Resources Policy, Elsevier, vol. 33(2), pages 55-73, June.
    3. Priniti Panday, 2003. "Incidence theory and the shifting of protection across sectors: the South Asian experience," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 125-132.
    4. Sabine Engelmann, 2014. "International trade, technological change and wage inequality in the UK economy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(2), pages 223-246, May.
    5. Sebastian Edwards, 1987. "Economics Liberalization and the Equilibrium Real Exchange Rate in Developing Countries," UCLA Economics Working Papers 433, UCLA Department of Economics.
    6. Feeney, JoAnne & Hillman, Arye L., 1995. "Asset markets and individual trade policy preferences," Discussion Papers, Series II 282, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    7. Jin, Keyu, 2009. "Industrial structure and financial capital flows," LSE Research Online Documents on Economics 25827, London School of Economics and Political Science, LSE Library.
    8. Bettendorf, Leon J.H. & Heijdra, Ben J., 2006. "Population ageing and pension reform in a small open economy with non-traded goods," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2389-2424, December.
    9. Sugata Marjit & Saibal Kar, 2019. "International Capital Flows, Land Conversion and Wage Inequality in Poor Countries," Open Economies Review, Springer, vol. 30(5), pages 933-945, November.
    10. Gokhan Akay & Can Dogan, 2013. "The effect of labor supply changes on output: empirical evidence from US industries," Journal of Productivity Analysis, Springer, vol. 39(2), pages 123-130, April.
    11. Ronald W. Jones, 2010. "Production Possibility Frontiers," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 33, Edward Elgar Publishing.
    12. T. Huw Edwards & John Whalley, 2002. "Short and Long Run Decompositions of OECD Wage Inequality Changes," NBER Working Papers 9265, National Bureau of Economic Research, Inc.
    13. Guren, Adam & Hémous, David & Olsen, Morten, 2015. "Trade dynamics with sector-specific human capital," Journal of International Economics, Elsevier, vol. 97(1), pages 126-147.
    14. Ronald W. Jones, 2018. "Heckscher–Ohlin and Specific-Factors Trade Models for Finite Changes: How Different Are They?," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 8, pages 117-136, World Scientific Publishing Co. Pte. Ltd..
    15. Christopher Clague & David Greenaway, 1994. "Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model," The Economic Record, The Economic Society of Australia, vol. 70(208), pages 36-43, March.
    16. Feenstra, Robert C. & Lewis, Tracy R., 1994. "Trade adjustment assistance and Pareto gains from trade," Journal of International Economics, Elsevier, vol. 36(3-4), pages 201-222, May.
    17. repec:ilo:ilowps:250014 is not listed on IDEAS
    18. Magee, Christopher S.P. & Davidson, Carl & Matusz, Steven J., 2005. "Trade, turnover, and tithing," Journal of International Economics, Elsevier, vol. 66(1), pages 157-176, May.
    19. Chris Milner, 1995. "Relative Incentives and Trade Strategies: Typologies and Possibilities," The Economic Record, The Economic Society of Australia, vol. 71(3), pages 230-239, September.
    20. repec:elg:eechap:15325_12 is not listed on IDEAS
    21. Debaere, Peter & Li, Tianshu, 2017. "The Effects of Water Markets: Evidence from the Rio Grande," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259187, Agricultural and Applied Economics Association.
    22. Shoya Ishimaru & Soo Hyun Oh & Seung-Gyu Sim, 2017. "Trade preferences and political equilibrium associated with trade liberalization," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(3), pages 361-384, April.

    More about this item

    Keywords

    F16;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:11:y:2005:i:4:p:417-432:10.1007/s11294-005-2278-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.