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Trade with China and India and Manufacturing Labour Demand in Argentina

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Author Info
Castro, Lucio
Saslavsky, Daniel

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Abstract

For many in Latin America, the increasing participation of China and India in international markets is seen as a looming shadow of two ?mighty giants? on the region?s manufacturing sector. Are they really mighty giants when it comes to their impact on manufacturing employment? This paper attempts to answer this question by estimating the effects of trade with China and India on Argentina?s industrial employment. We use a dynamic econometric model and industry level data to estimate the effects of trade with China and India on the level of employment in Argentina?s manufacturing sector. Results suggest that trade with China and India only had a small negative effect on industrial employment, even during the swift trade liberalization of the 1990s.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2008/rp2008-108.pdf
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Publisher Info
Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Research Paper RP2008/108.

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Length: 28 pages
Date of creation: 2008
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Handle: RePEc:unu:wpaper:rp2008-108

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Related research
Keywords: China; Latin America; trade; import competition; trade and labour market interactions; employment;

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  1. Levinsohn, James, 1999. "Employment responses to international liberalization in Chile," Journal of International Economics, Elsevier, vol. 47(2), pages 321-344, April. [Downloadable!] (restricted)
  2. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages S20-43, July. [Downloadable!] (restricted)
  3. Pabo Sanguinetti & Sebastian Galiani, 2003. "The impact of trade liberalizationon wage inequality:Evidence from Argentina," Department of Economics Working Papers 011, Universidad Torcuato Di Tella. [Downloadable!]
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  4. Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs. [Downloadable!]
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  5. Castro, Lucio & Olarreaga, Marcelo & Saslavsky, Daniel, 2007. "The impact of trade with China and India on Argentina's manufacturing employment," Policy Research Working Paper Series 4153, The World Bank. [Downloadable!]
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  6. Lionel Fontagne & Michael Freudenberg, 1997. "Intra-Industry Trade : Methodological Issues Reconsidered," Working Papers 1997-01, CEPII research center. [Downloadable!]
  7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  8. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July. [Downloadable!] (restricted)
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