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Assessing the Impact of Trade Policy on Labour Markets and Production

Author

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  • Joseph F. Francois

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 F. Francois, 2004. "Assessing the Impact of Trade Policy on Labour Markets and Production," Economie Internationale, CEPII research center, issue 99, pages 27-47.
    • Handle: RePEc:cii:cepiei:2004-3qb
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    File URL: http://www.cepii.fr/IE/rev99/rev99b.htm
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    Cited by:

    1. 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.

    More about this item

    Keywords

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    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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