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International Trade and Labour Market Adjustment in Developing Countries

In: Trade, Investment, Migration and Labour Market Adjustment


  • Augustin Kwasi Fosu

    (African Economic Research Consortium)


The current school of thought in the growth literature appears to favour openness as the appropriate strategy for generating sustainable growth in developing countries. Correspondingly, the import-substituting (IS) paradigm that seemed to dominate much of the 1950s and 1960s has now given way to export-promoting (EP) strategies.1 Policies based on these trade-related modes of development are credited with promoting the relatively spectacular growth especially in East Asian economies. More recently, in the mid-1980s, many developing economies have engaged in trade liberalisation programmes, and there appears to be some evidence that such programmes have aided growth. What remains unclear, however, is the role of labour market adjustments in transmitting growth to improving the welfare of the population, at least in the short run. Such transmission has become particularly important as the current focus of the debate seems to have shifted from just economic growth to poverty reduction in developing countries.

Suggested Citation

  • Augustin Kwasi Fosu, 2002. "International Trade and Labour Market Adjustment in Developing Countries," International Economic Association Series, in: David Greenaway & Richard Upward & Katharine Wakelin (ed.), Trade, Investment, Migration and Labour Market Adjustment, chapter 8, pages 137-156, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-4039-2018-8_8
    DOI: 10.1057/9781403920188_8

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