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The Impact of International Trade on Labour Markets. The Case of Outward Processing Traffic between the European Union and Central Eastern European Countries

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Author Info
Giuseppe Celi () (University of Sussex and University of Bari)

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Abstract

In this paper we are trying to evaluate the differential impact of Outward Processing Traffic (OPT) flows with respect to the final trade flows on the labour markets of EU countries. In particular, two EU countries are investigated, Germany and Italy, because of their relevance on total EU-CEEC OPT flows and because they embody two different models of outsourcing towards CEECs. The factor content of trade (FCT) analysis conducted at both levels of inter-industry trade and intra-industry trade signals a more relevant impact of OPT flows than final flows. In particular, results suggest that the labour market effects of intra-industry trade flows deriving from the vertical disintegration of production add significantly to the estimated factor market impact of trade.

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Publisher Info
Paper provided by CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy in its series CELPE Discussion Papers with number 54.

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Date of creation: Jun 2000
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Handle: RePEc:sal:celpdp:54

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Related research
Keywords: intra-industry trade; EU-CEEC trade; vertical disintegration; quality differentiation; labour market effects of international trade;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F15 - International Economics - - Trade - - - Economic Integration

References listed on IDEAS
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  1. Feenstra, R.C. & Hanson, G.H., 1995. "Foreign Investment, Outsourcing and Relative Wages," Department of Economics 95-14, California Davis - Department of Economics.
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  2. David Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 79-99. [Downloadable!]
  3. Deardorff, A.V., 1998. "Fragmentation in Simple Trade Models," Papers 98-11, Michigan - Center for Research on Economic & Social Theory.
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  4. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 80-104, March. [Downloadable!] (restricted)
  5. Paul Krugman & Robert Lawrence, 1993. "Trade, Jobs, and Wages," NBER Working Papers 4478, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Roemer, John E, 1977. "The Effect of Sphere of Influence and Economic Distance on the Commodity Composition of Trade in Manufactures," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 318-27, August. [Downloadable!] (restricted)
  7. Giuseppe Celi & Maria Luigia Segnana, 2000. "Trade and Labour Markets: Vertical and Regional Differentiation in Italy," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(3), pages 441-472, 09. [Downloadable!] (restricted)
  8. Corado, Cristina, 1994. "Textiles and Clothing Trade with Central and Eastern Europe: Impact on Members of the EC," CEPR Discussion Papers 1004, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  9. repec:fth:michin:422 is not listed on IDEAS
  10. Johnson, George E, 1997. "Changes in Earnings Inequality: The Role of Demand Shifts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 41-54, Spring. [Downloadable!] (restricted)
  11. Giuseppe Celi & Alasdair Smith, 1999. "Quality Differentiation and the Labour Market Effects of International Trade," CELPE Discussion Papers 50, CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy. [Downloadable!]
  12. Feenstra, Robert C, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall. [Downloadable!] (restricted)
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