Trade and agricultural employment linkages in general equilibrium modelling
AbstractTrade negotiators are frequently concerned about the possible negative effects of trade liberalisation on employment in specific sectors. The agricultural sector in developing countries has characteristics that make it different from industrial or service sectors. These characteristics are an informal labour force, low productivity, absence of regulations and a tie to land. These features affect adjustment costs. A global computable general equilibrium model, GTAP, is used to analyse employment and wage effects of trade liberalization in three developing countries — Indonesia, Bangladesh and Guatemala. The ability to fully utilize all resources, including labour, is important. The results highlight the advantage of a functioning and flexible labour market that can readily adjust to trade shocks.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2013 Conference (57th), February 5-8, 2013, Sydney, Australia with number 152182.
Date of creation: Feb 2013
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agriculture; trade; employment; Agricultural and Food Policy; International Relations/Trade; F13; Q17;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-07-15 (Agricultural Economics)
- NEP-ALL-2013-07-15 (All new papers)
- NEP-CMP-2013-07-15 (Computational Economics)
- NEP-SEA-2013-07-15 (South East Asia)
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