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Exports, Price Transmission and Wage Inequality: Evidence using the Case of the Impact of AGOA in Ghanaian Manufacturing Firms

Author

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  • Francis Mulangu

    (African Center for Economic Transformation (ACET))

Abstract

The paper presents evidence of the relationship between exports and wage inequality using manufacturing firm-level data from Ghana. After contextualizing the Ghanaian manufacture sector a dynamic difference-in-differences model was used to compare exporting firms to matched non-exporting ones before and after the African Growth Opportunity Act (AGOA) was enacted. Robustness tests were used to verify if the estimated export premium is associated with AGOA. After estimating the heterogeneous change in wages associated with the export premium, the paper finds that exporting per se may not necessarily lead to wage inequality, but the mechanism by which export premium is transmitted to workers and this mechanism has primarily benefited unskilled male workers with relatively lower pre-AGOA wages working in smaller firms.

Suggested Citation

  • Francis Mulangu, 2015. "Exports, Price Transmission and Wage Inequality: Evidence using the Case of the Impact of AGOA in Ghanaian Manufacturing Firms," Journal of African Development, African Finance and Economic Association (AFEA), vol. 17(1), pages 45-73.
    • Handle: RePEc:afe:journl:v:17:y:2015:i:1:p:45-73
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    More about this item

    Keywords

    Exports; Ghana; Wage Inequality;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F6 - International Economics - - Economic Impacts of Globalization

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