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Impacts Of Trade Liberalization On Employment In Vietnam: A System Generalized Method Of Moments Estimation

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  • Tran Nhuan KIEN
  • Yoon HEO

Abstract

Using a system generalized method of moments model, the present paper investigates the impacts of trade liberalization on employment in Vietnam from 1999 to 2004. The results show that the increase in industrial output increased labor demand, whereas the increasing wage rate led to a decline in the employment level. The impact of export expansion on derived labor demand was positive and statistically significant, indicating that the higher level of exports than previously presented employment opportunities for the country's large labor surplus. As far as imports are concerned, empirical observations indicate that imports did not necessarily negatively impact Vietnam's employment level.

Suggested Citation

  • Tran Nhuan KIEN & Yoon HEO, 2009. "Impacts Of Trade Liberalization On Employment In Vietnam: A System Generalized Method Of Moments Estimation," The Developing Economies, Institute of Developing Economies, vol. 47(1), pages 81-103, March.
    • Handle: RePEc:bla:deveco:v:47:y:2009:i:1:p:81-103
    DOI: 10.1111/j.1746-1049.2009.00077.x
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