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Assessing the Impact of Trade Policy on Labor Markets and Production

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  • Joseph Francois

    (Faculty of Economics, Erasmus Universiteit Rotterdam, and CEPR)

Abstract

This paper discusses the measurement of production and employment effects of trade policy, and more broadly the effects of economic integration and globalization. First, it provides a broad-brush overview of the ex-post literature linking trade to performance, such as measures of worker displacement, adjustment costs, and econometric evidence on trade and wages. It then defines structural impact indexes, illustrating their use with a stylized CGE model-based assessment of the impact of EU enlargement on the transition economies. Finally, the last section discusses the gap between our ex-post experience with adjustment costs, and what ex-ante methods actually tell us.

Suggested Citation

  • Joseph Francois, 2004. "Assessing the Impact of Trade Policy on Labor Markets and Production," Tinbergen Institute Discussion Papers 04-058/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040058
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    References listed on IDEAS

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    1. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," The World Bank Economic Review, World Bank, vol. 11(1), pages 33-57, January.
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    6. Takacs, Wendy E & Winters, L Alan, 1991. "Labour Adjustment Costs and British Footwear Protection," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 479-501, July.
    7. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(24), pages 125-176.
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    Cited by:

    1. Hoekman & Bernard & Winters, L. Alan, 2005. "Trade and employment : stylized facts and research findings," Policy Research Working Paper Series 3676, The World Bank.

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    More about this item

    Keywords

    adjustment costs; labour displacement; output effects of trade liberalization;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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