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Trade, labour market regulations and growth

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  • Matthias Busse
  • Carsten Hefeker

Abstract

We empirically analyse the role of labour market regulations for the impact of trade on growth. The results indicate that countries with flexible labour markets are more likely to harness the gains from trade. This outcome may help to explain the diverse impact of trade on growth.

Suggested Citation

  • Matthias Busse & Carsten Hefeker, 2009. "Trade, labour market regulations and growth," Applied Economics Letters, Taylor & Francis Journals, vol. 16(8), pages 809-812.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:8:p:809-812
    DOI: 10.1080/13504850701221956
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    References listed on IDEAS

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    1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    2. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 20-43, July.
    3. Alfonso Arpaia & Gilles Mourre, 2005. "Labour Market Institutions and Labour Market Performance: A Survey of the Literature," Labor and Demography 0512011, University Library of Munich, Germany.
    4. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    5. MartÌn Rama, 2003. "Globalization and the Labor Market," The World Bank Research Observer, World Bank, vol. 18(2), pages 159-186.
    6. Pedro Portugal & Olivier Blanchard, 2001. "What Hides Behind an Unemployment Rate: Comparing Portuguese and U.S. Labor Markets," American Economic Review, American Economic Association, vol. 91(1), pages 187-207, March.
    7. Eichengreen, Barry & Iversen, Torben, 1999. "Institutions and Economic Performance: Evidence from the Labour Market," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 15(4), pages 121-138, Winter.
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    Cited by:

    1. Burçak Polat & Antonio Rodríguez Andrés, 2017. "Trade openness, labour market rigidity and economic growth: A dynamic panel data analysis," The Economic and Labour Relations Review, , vol. 28(4), pages 555-564, December.
    2. Vasileios A. Vlachos & Dimitris Kalimeris, 2010. "International business spillovers in emerging markets: the Visegrad group," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(4), pages 330-345.

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