IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-14-00713.html

The Effect of International Trade on Labor Demand in ASEAN5

Author

Listed:
  • Kaung Myat Ko

    (University of the Thai Chamber of Commerce)

  • Poomthan Rangkakulnuwat

    (University of the Thai Chamber of Commerce)

  • Sasiwimon W. Paweenawat

    (University of the Thai Chamber of Commerce)

Abstract

This paper assesses the effects of ASEAN5's international trade on their level of employment. By applying the labor demand model of Greenaway et al. (1999), we classified ASEAN5's international trade into two cases: (1) intra-ASEAN5 trade and (2) trade with the world market. Our estimated results show that an increase in intra-ASEAN5 imports reduces their level of employment, but that intra-ASEAN5 exports have no effect on employment. In the case of world market trade, ASEAN5's world imports (exports) have a positive (negative) effect on employment depending on the sort of trade.

Suggested Citation

  • Kaung Myat Ko & Poomthan Rangkakulnuwat & Sasiwimon W. Paweenawat, 2015. "The Effect of International Trade on Labor Demand in ASEAN5," Economics Bulletin, AccessEcon, vol. 35(2), pages 1034-1041.
    • Handle: RePEc:ebl:ecbull:eb-14-00713
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I2-P105.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Céline CARRERE & Marco FUGAZZA & Marcelo OLARREAGA & Frédéric ROBERT-NICOUD, 2014. "Trade in Unemployment," Working Papers P101, FERDI.
    2. Slaughter, Matthew J., 2001. "International trade and labor-demand elasticities," Journal of International Economics, Elsevier, vol. 54(1), pages 27-56, June.
    3. 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.
    4. Biscourp, Pierre & Kramarz, Francis, 2007. "Employment, skill structure and international trade: Firm-level evidence for France," Journal of International Economics, Elsevier, vol. 72(1), pages 22-51, May.
    5. Bushra Yasmin & Aliya H. Khan, 2011. "Trade Openness: New Evidence for Labor-Demand Elasticity in Pakistan's Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(2), pages 55-85, Jul-Dec.
    6. Hasan, Rana & Mitra, Devashish & Ranjan, Priya & Ahsan, Reshad N., 2012. "Trade liberalization and unemployment: Theory and evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 269-280.
    7. Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
    8. Filip Abraham & Ellen Brock, 2003. "Sectoral employment effects of trade and productivity in Europe," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 223-238.
    9. Erhan Artuç & Shubham Chaudhuri & John McLaren, 2010. "Trade Shocks and Labor Adjustment: A Structural Empirical Approach," American Economic Review, American Economic Association, vol. 100(3), pages 1008-1045, June.
    10. Kunal Sen, 2009. "International Trade and Manufacturing Employment: Is India following the Footsteps of Asia or Africa?," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 765-777, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hande Aksoz Yilmaz, 2021. "Panel Data Model Analysis on the Relationship Between Export and Employment: The Case of OECD Countries," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(2), pages 115-139, July.
    2. Boker Poumie & Herve Kaffo Fotio & Guy P. Dazoue Dongue, 2022. "The employment effects of intra‐African exports," African Development Review, African Development Bank, vol. 34(4), pages 541-555, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Admasu Shiferaw & Degol Hailu, 2016. "Job creation and trade in manufactures: industry-level analysis across countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-36, December.
    2. David Hummels & Jakob R. Munch & Chong Xiang, 2018. "Offshoring and Labor Markets," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 981-1028, September.
    3. Karishma Banga, 2017. "Impact of Linking into Global Value Chains on Indian Employment," Working Papers 1701, Council on Economic Policies.
    4. Alkhateeb, Tarek Tawfik Yousef & Mahmood, Haider & Sultan, Zafar Ahmad & Ahmad, Nawaz, 2017. "Trade Openness and Employment Nexus in Saudi Arabia," MPRA Paper 109451, University Library of Munich, Germany.
    5. Ludo Cuyvers & Emmanuel Dhyne & Reth Soeng, 2010. "The effects of internationalisation on domestic labour demand by skills : Firm-level evidence for Belgium," Working Paper Research 206, National Bank of Belgium.
    6. Nazia Anjum & Zahid Perviz, 2016. "Effect of Trade Openness on Unemployment in Case of Labour and Capital Abundant Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(1), pages 44-58, March.
    7. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1799-1860.
    8. Giovanni S.F. Bruno & Anna M. Falzoni & Rodolfo Helg, 2004. "Measuring the effect of globalization on labour demand elasticity: An empirical application to OECD countries," KITeS Working Papers 153, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Feb 2004.
    9. Devashish Mitra, 2019. "Responses to Trade Opening: Evidence and Lessons from Asia," Working Papers id:12977, eSocialSciences.
    10. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2015. "The own-wage elasticity of labor demand: A meta-regression analysis," European Economic Review, Elsevier, vol. 80(C), pages 94-119.
    11. Xavier Cirera & Dirk Willenbockel & Rajith W.D. Lakshman, 2014. "Evidence On The Impact Of Tariff Reductions On Employment In Developing Countries: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 449-471, July.
    12. Huong Vu & Steven Lim & Mark Holmes & Tinh Doan, 2013. "Firm Exporting and Employee Benefits: First Evidence from Vietnam Manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(1), pages 519-535.
    13. Céline CARRERE & Marco FUGAZZA & Marcelo OLARREAGA & Frédéric ROBERT-NICOUD, 2014. "Trade in Unemployment," Working Papers P101, FERDI.
    14. Hanan Nazier, 2019. "Estimating Labor Demand Elasticities and Elasticities of Substitution in Egyptian Manufacturing Sector: A Firm-Level Static Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 549-575, December.
    15. Njikam, Ousmanou, 2016. "Trade liberalization, labor market regulations and labor demand in Cameroon," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 525-541.
    16. Kondo, Illenin O., 2018. "Trade-induced displacements and local labor market adjustments in the U.S," Journal of International Economics, Elsevier, vol. 114(C), pages 180-202.
    17. Robertson,Raymond & Kokas,Deeksha & Cardozo,Diego & Lopez-Acevedo,Gladys C., 2020. "Short and Long-Run Labor Market Effects of Developing Country Exports : Evidence from Bangladesh," Policy Research Working Paper Series 9176, The World Bank.
    18. Nihar Shembavnekar, . "Did India’s economic reforms generate jobs? Essays on economic liberalisation, labour market flexibility and employment in the Indian manufacturing sector (1990-2006)," Economics PhD Theses, Department of Economics, University of Sussex Business School, number 0917, December.
    19. Elias Dinopoulos & Bulent Unel, 2017. "Managerial capital, occupational choice and inequality in a global economy," Canadian Journal of Economics, Canadian Economics Association, vol. 50(2), pages 365-397, May.
    20. Vu, Van Huong, 2012. "Does export participation affect wages and employment quality? the case of Vietnamese SMEs," MPRA Paper 38696, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • F1 - International Economics - - Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-14-00713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.