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Does Trade Liberalization Increase the Labor Demand Elasticities? Evidence from Pakistan

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  • Akhter, Naseem
  • Ali, Amanat

Abstract

This study measure the linkage of trade liberalization and labor demand elasticities. Using Pakistan firm-level data, spanning the course of trade liberalization, study try to determine whether the trade liberalization increase the own price labor demand elasticities in the manufacturing sector of Pakistan. Elasticities are measure for production workers and non-production workers for major eleven industries at individual level at first and later elasticities are measured by pooling data across the industries at aggregate level. However, in most of the industries, study unable to find any empirical support for the hypothesis of no relationship between trade liberalization and labor demand elasticities in case of Pakistan.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3881.

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Date of creation: Jun 2007
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Handle: RePEc:pra:mprapa:3881

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Keywords: Trade liberalization; elasticities; Production and non Production worker; Pakistan;

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  1. A.R. Kemal & Rehana Siddiqui & Rizwana Siddiqui, 2001. "Triff Reduction and Income Destribution A CGE-based Analysis for Urban and Rural Households in Pakistan," PIDE-Working Papers 2001:181, Pakistan Institute of Development Economics.
  2. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages S44-71, July.
  3. Prachi Mishra & Utsav Kumar, 2005. "Trade Liberalization and Wage Inequality," IMF Working Papers 05/20, International Monetary Fund.
  4. Ann Harrison & Ana Revenga, 1995. "The Effects of Trade Policy Reform: What Do We Really Know?," NBER Working Papers 5225, National Bureau of Economic Research, Inc.
  5. Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics.
  6. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," PIDE-Working Papers 2006:1, Pakistan Institute of Development Economics.
  7. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 57, July.
  8. Krishna, Pravin & Mitra, Devashish & Chinoy, Sajjid, 2001. "Trade liberalization and labor demand elasticities: evidence from Turkey," Journal of International Economics, Elsevier, Elsevier, vol. 55(2), pages 391-409, December.
  9. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand andtrade reform in Latin America," Policy Research Working Paper Series 2491, The World Bank.
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