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Analysing the effects of labour standards on US export performance. A time series approach with structural change

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Author Info
Gabriel Rodríguez
Yiagadeesen Samy

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Abstract

The empirical effects of different measures of labour standards on the export performance of the United States are analysed using annual data for the period 1950-1998, applying a time series approach based on the structural change literature. Hence, a model with endogenous breaks is estimated following the methodology proposed by Bai and Perron ( Econometrica , 66 , 47-78, 1998). The results show that the labour standards, represented by the number of hours worked, the rate of occupational injuries and the unionization rate, are all very important to explain the behaviour of exports for the United States. In particular, it is found that low labour standards may both improve or lead to a deterioration in export performance.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 9 (January)
Pages: 1043-1051
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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1043-1051

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Jai S. Mah, 1997. "Core Labour Standards and Export Performance in Developing Countries," The World Economy, Blackwell Publishing, vol. 20(6), pages 773-785, 09. [Downloadable!] (restricted)
  2. Ng, S. & Perron, P., 1994. "Unit Root Tests ARMA Models with Data Dependent Methods for the Selection of the Truncation Lag," Cahiers de recherche 9423, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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  3. Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
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  4. Campbell, J.Y. & Perron, P., 1991. "Pitfalls and Opportunities: What Macroeconomics should know about unit roots," Papers 360, Princeton, Department of Economics - Econometric Research Program.
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  5. Zivot, Eric & Andrews, Donald W K, 1992. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 251-70, July.
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  6. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-36, July. [Downloadable!] (restricted)
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  7. Kenneth A. Swinnerton, 1997. "An Essay on Economic Efficiency and Core Labour Standards," The World Economy, Blackwell Publishing, vol. 20(1), pages 73-86, 01. [Downloadable!] (restricted)
  8. Banerjee, Anindya & Lumsdaine, Robin L & Stock, James H, 1992. "Recursive and Sequential Tests of the Unit-Root and Trend-Break Hypotheses: Theory and International Evidence," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(3), pages 271-87, July.
  9. Goldstein, Morris & Khan, Mohsin S., 1985. "Income and price effects in foreign trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 20, pages 1041-1105 Elsevier. [Downloadable!] (restricted)
  10. Perron, P., 1990. "Further Evidence On Breaking Trend Functions In Macroeconomics Variables," Papers 350, Princeton, Department of Economics - Econometric Research Program.
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  11. Perron, Pierre & Rodriguez, Gabriel, 2003. "GLS detrending, efficient unit root tests and structural change," Journal of Econometrics, Elsevier, vol. 115(1), pages 1-27, July. [Downloadable!] (restricted)
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  12. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22. [Downloadable!]
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  13. Anderson, Kym, 1995. "The Entwining of Trade Policy with Environmental and Labour Standards," CEPR Discussion Papers 1158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  14. Martin, Will & Maskus, Keith E, 2001. "Core Labor Standards and Competitiveness: Implications for Global Trade Policy," Review of International Economics, Blackwell Publishing, vol. 9(2), pages 317-28, May. [Downloadable!] (restricted)
  15. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Vivek Dehejia & Yiagadeesen Samy, 2004. "Trade and labour standards: theory and new empirical evidence," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 13(2), pages 179-198, June. [Downloadable!] (restricted)
  2. Vivek Dehejia & Yiagadeesen Samy, 2006. "Labor Standards and Economic Integration in the European Union: An Empirical Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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