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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
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    References listed on IDEAS

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    1. 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.
    2. Céline CARRERE & Marco FUGAZZA & Marcelo OLARREAGA & Frédéric ROBERT-NICOUD, 2014. "Trade in Unemployment," Working Papers P101, FERDI.
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    4. 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.
    5. 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.
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    9. 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.
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    Cited by:

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    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.

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    JEL classification:

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

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