IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v50y2014i2p226-243.html
   My bibliography  Save this article

The Impact of Trade Liberalisation on Household Welfare in a Developing Country with Imperfect Labour Markets

Author

Listed:
  • Ganesh K. Seshan

Abstract

I develop an empirical methodology to assess the distributional impact of trade-induced price shocks when labour markets are imperfect. The proposed methodology relates exogenous variations in prices to changes in household welfare using a separable agricultural household model that flexibly allows the data to determine the degree of labour market imperfections. Applying this approach to Vietnam, I investigate the impact of agriculture trade liberalisation between 1993 and 1998 on overall household welfare, measured using per capita household expenditure. I find that accounting for labour market imperfections results in welfare gains that are nearly four times larger than those found when assuming complete labour markets.

Suggested Citation

  • Ganesh K. Seshan, 2014. "The Impact of Trade Liberalisation on Household Welfare in a Developing Country with Imperfect Labour Markets," Journal of Development Studies, Taylor & Francis Journals, vol. 50(2), pages 226-243, February.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:2:p:226-243
    DOI: 10.1080/00220388.2013.833324
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220388.2013.833324
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220388.2013.833324?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. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
    2. Pinelopi K. Goldberg & Nina Pavcnik, 2004. "Trade, Inequality, and Poverty: What Do We Know? Evidence from Recent Trade Liberalization Episodes in Developing Countries," NBER Working Papers 10593, National Bureau of Economic Research, Inc.
    3. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI).
    4. repec:pru:wpaper:30 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Devashish Mitra, 2019. "Responses to Trade Opening: Evidence and Lessons from Asia," Working Papers id:12977, eSocialSciences.
    2. Peter Brummund & Joshua D. Merfeld, 2022. "Should farmers farm more? Comparing marginal products within Malawian households," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 289-306, March.
    3. Han, Jun & Liu, Runjuan & Ural Marchand, Beyza & Zhang, Junsen, 2016. "Market structure, imperfect tariff pass-through, and household welfare in Urban China," Journal of International Economics, Elsevier, vol. 100(C), pages 220-232.
    4. Thang T. Vo & Dinh X. Nguyen, 2021. "Impact of Trade Liberalization on Household Welfare: An Analysis Using Household Exposure-to-Trade Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 503-531, January.

    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. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade Liberalization And Poverty Dynamics in Vietnam 2002-2006," PSE - G-MOND WORKING PAPERS halshs-00966364, HAL.
    2. Jonathan Gershuny & John Robinson, 1988. "Historical changes in the household division of labor," Demography, Springer;Population Association of America (PAA), vol. 25(4), pages 537-552, November.
    3. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "The Effects of the Colombian Trade Liberalization on Urban Poverty," NBER Chapters, in: Globalization and Poverty, pages 241-290, National Bureau of Economic Research, Inc.
    4. Ahn T. Le, 2003. "Female Labour Market Participation: Differences Between Primary and Tied Movers," Economics Discussion / Working Papers 03-17, The University of Western Australia, Department of Economics.
    5. Zsófia L. Bárány, 2016. "The Minimum Wage and Inequality: The Effects of Education and Technology," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 237-274.
    6. Elizabeth Jane Casabianca, 2012. "Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay," FIW Working Paper series 083, FIW.
    7. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
    8. Almeida, Alexandre N. & Bravo-Ureta, Boris E., 2019. "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua," Economic Systems, Elsevier, vol. 43(1), pages 99-110.
    9. François Gardes, 2021. "Endogenous Prices in a Riemannian Geometry Framework," Post-Print halshs-03325414, HAL.
    10. Rania Gihleb & Osnat Lifshitz, 2022. "Dynamic Effects of Educational Assortative Mating on Labor Supply," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 46, pages 302-327, October.
    11. Dipankar Purkayastha, 1999. "Patriarchal Monopoly and Economic Development," Feminist Economics, Taylor & Francis Journals, vol. 5(2), pages 61-78.
    12. Billari, Francesco C. & Giuntella, Osea & Stella, Luca, 2018. "Broadband internet, digital temptations, and sleep," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 58-76.
    13. Huffman, Wallace, 2004. "Marketizing U.S. Production in the Post-War Era: Implications for Estimating CPI Bias and Real Income from a Complete-Household-Demand System," Staff General Research Papers Archive 11987, Iowa State University, Department of Economics.
    14. Puja Vasudeva Dutta, 2007. "Trade Protection and Industry Wages in India," ILR Review, Cornell University, ILR School, vol. 60(2), pages 268-286, January.
    15. Dagmar Brožová, 2010. "Individual Labour Supply Decisions with Respect To Household Production and Over the Life Cycle [Rozhodování o individuální nabídce práce s ohledem na produkci domácnosti a v průběhu životního cykl," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2010(1), pages 21-33.
    16. James J. Heckman, 2015. "Introduction to A Theory of the Allocation of Time by Gary Becker," Economic Journal, Royal Economic Society, vol. 0(583), pages 403-409, March.
    17. Philippe Aghion & Robin Burgess & Stephen J. Redding & Fabrizio Zilibotti, 2008. "The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India," American Economic Review, American Economic Association, vol. 98(4), pages 1397-1412, September.
    18. repec:pru:wpaper:8 is not listed on IDEAS
    19. Olivier Donni & Eleonora Matteazzi, 2012. "On the Importance of Household Production in Collective Models: Evidence from U.S. Data," Annals of Economics and Statistics, GENES, issue 105-106, pages 99-125.
    20. Catherine Sofer & Claire Thibout, 2019. "Women’s investment in career and the household division of labour," Applied Economics, Taylor & Francis Journals, vol. 51(60), pages 6535-6557, December.
    21. Rosen, Harvey S, 1980. "What Is Labor Supply and Do Taxes Affect It?," American Economic Review, American Economic Association, vol. 70(2), pages 171-176, May.

    More about this item

    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:taf:jdevst:v:50:y:2014:i:2:p:226-243. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    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.