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Trade and Employment: Evidence from Latin America and the Caribbean

  • Carmen Pagés-Serra

    ()

  • Gustavo Márquez

    ()

This paper examines the impact of the recent wave of trade liberalization and economic reform on employment. Four alternative measures of openness and four measures of the real exchange rate are used to measure the impact of trade reforms on manufacturing and economy-wide employment. Across a wide range of specifications, trade reforms have had a negative, albeit small, effect on employment growth. This effect has been reinforced by real exchange rate appreciation.

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File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=WP-366&pub_file_name=pubWP-366.pdf
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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4108.

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Date of creation: Jan 1998
Date of revision:
Handle: RePEc:idb:wpaper:4108
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  1. Eduardo Fernández-Arias & Peter Montiel, 2002. "Reform and Growth in Latin America: All Pain, No Gain?," Department of Economics Working Papers 2001-06, Department of Economics, Williams College.
  2. Sebastian Edwards, 1994. "Macroeconomic Stabilization in Latin America: Recent Experience and Some Sequencing Issues," NBER Working Papers 4697, National Bureau of Economic Research, Inc.
  3. Harrison, Ann, 1991. "Openness and growth : a time series, cross-country analysis for developing countries," Policy Research Working Paper Series 809, The World Bank.
  4. Easterly, William & Loayza, Norman & Montiel, Peter, 1997. "Has Latin America's post-reform growth been disappointing?," Policy Research Working Paper Series 1708, The World Bank.
  5. Jeffrey A. Frankel & David Romer, 1996. "Trade and Growth: An Empirical Investigation," NBER Working Papers 5476, National Bureau of Economic Research, Inc.
  6. Ann Harrison & Ana Revenga, 1995. "The Effects of Trade Policy Reform: What Do We Really Know?," NBER Working Papers 5225, National Bureau of Economic Research, Inc.
  7. Sebastian Edwards, 1991. "Trade Orientation, Distortions and Growth in Developing Countries," NBER Working Papers 3716, National Bureau of Economic Research, Inc.
  8. Simon Burgess & Michael M. Knetter, 1996. "An International Comparison of Employment Adjustment to Exchange Rate Fluctuations," NBER Working Papers 5861, National Bureau of Economic Research, Inc.
  9. Anderson, Patricia M, 1993. "Linear Adjustment Costs and Seasonal Labor Demand: Evidence from Retail Trade Firms," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 1015-42, November.
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