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Changes in Global Trade Patterns and Women's Employment in Manufacturing: an Analysis over the Period of Asianization and De-industrialization

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Author Info

  • Burca Kizilirmak

    ()
    (Department of Economics, Ankara University)

  • Emel Memis

    ()
    (Department of Economics, Ankara University)

  • Sirin Saracoglu

    ()
    (Department of Economics, METU)

  • Ebru Voyvoda

    ()
    (Department of Economics, METU)

Abstract

The purpose of this study is to explore the employment effects of changes in manufacturing output resulting from changes in trade patterns over the period 1995-2006. For 30 countries (21 OECD and 9 non-OECD countries) we estimate the changes in embodied labor content due to trade using the factor-content analysis by breaking up the sources of these changes between the trade with the North, the South and China. We also decompose changes in employment into its components as changes within and across sectors. Our results present a net negative impact of trade on total employment in 30 countries over the period of analysis (despite employment gains in 17 countries). In all countries (except for Philippines and Republic of Korea) trade with China has a negative impact on total employment with a stronger negative effect on women’s employment. Employment losses in the South due to surge in imports from China are coupled with declining exports to the North as many countries in the North shift their imports to emerging economies in Asia. Decomposition results indicate that decline in the share of women’s employment is mainly due to shifts between sectors rather than within sector changes. Changes in women’s employment are still highly dependent on the movements in ‘traditional’ manufacturing sectors including food, textiles and wearing apparel.

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File URL: http://www.erc.metu.edu.tr/menu/series14/1401.pdf
File Function: First version, 2014
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Bibliographic Info

Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 1401.

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Length: 41 pages
Date of creation: Jan 2014
Date of revision: Jan 2014
Handle: RePEc:met:wpaper:1401

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Keywords: North-South trade; decomposition analysis; factor content analysis; gender bias.;

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  1. David Kucera & William Milberg, 2003. "Deindustrialization and changes in manufacturing trade: Factor content calculations for 1978–1995," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 139(4), pages 601-624, December.
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  7. Robert Rowthorn & Ramana Ramaswamy, 1999. "Growth, Trade, and Deindustrialization," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 2.
  8. Koujianou Goldberg, Pinelopi & Pavcnik, Nina, 2003. "The response of the informal sector to trade liberalization," Journal of Development Economics, Elsevier, vol. 72(2), pages 463-496, December.
  9. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
  10. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162.
  11. Cagatay, Nilufer & Ozler, Sule, 1995. "Feminization of the labor force: The effects of long-term development and structural adjustment," World Development, Elsevier, vol. 23(11), pages 1883-1894, November.
  12. Shafaeddin, S. M., 2004. "Is China's accession to WTO threatening exports of developing countries?," China Economic Review, Elsevier, vol. 15(2), pages 109-144, January.
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