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An Empirical Analysis Of The Determinants Of Earning And Employment: Does Trade Protection Matter?

Author

Listed:
  • Priniti Panday

    (Gabelli School of Business, Roger Williams University)

Abstract

Empirical studies that directly analyze the effect of trade policies on earnings and employment across countries is notably absent in the international trade literature. Most of the previous work focuses on the effects of trade policy on income distribution and economic growth. This paper differs from the earlier studies in that it directly analyzes the effect of trade policies on earnings in the manufacturing and agricultural sectors, and on the unemployment rate. A theoretical model that accounts for cross-sector labor migration and urban unemployment is developed. Reduced form equations derived from the model are analyzed empirically via cross-country regression analysis. Besides trade policy, machine use in the agricultural sector, per capita land holdings, capital investments in the manufacturing sector and the adult literacy rate are the other explanatory variables incorporated in the empirical analysis.

Suggested Citation

  • Priniti Panday, 2003. "An Empirical Analysis Of The Determinants Of Earning And Employment: Does Trade Protection Matter?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 35-47, June.
    • Handle: RePEc:jed:journl:v:28:y:2003:i:1:p:35-47
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    References listed on IDEAS

    as
    1. Priniti Panday, 2003. "Incidence theory and the shifting of protection across sectors: the South Asian experience," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 125-132.
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    3. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921, April.
    4. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    5. Edwards, Sebastian, 1997. "Trade Policy, Growth, and Income Distribution," American Economic Review, American Economic Association, vol. 87(2), pages 205-210, May.
    6. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    7. Harrison, Ann, 1996. "Openness and growth: A time-series, cross-country analysis for developing countries," Journal of Development Economics, Elsevier, vol. 48(2), pages 419-447, March.
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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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