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Labor markets, foregin investment and trade policy reform

Author

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  • Harrison, Ann
  • Revenga, Ana

Abstract

This chapter reviews the available evidence on the linkages between trade reform, labor markets, and FDI. We begin by drawing on studies of sixteen countries that underwent trade reforms in the 1980s and 1990s. These sixteen countries were chosen because of their inclusion in the United Nations Development Programme (UNDP)-World Bank Trade Expansion Program (YEP). Wherever possible, we supplement these studies with additional studies and empirical evidence. The evidence suggests that the employment and wage effects of trade reforms are generally small. The only exceptions are in the transitional econo¬mies, such as Czechoslovakia, Mongolia, Poland, and Romania, where trade reforms were accompanied by a restructuring of the entire economy. In these countries, however, it is difficult to distinguish the effects of trade reform from the overall transformation of the economy.

Suggested Citation

  • Harrison, Ann & Revenga, Ana, 1997. "Labor markets, foregin investment and trade policy reform," MPRA Paper 36593, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:36593
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    File URL: https://mpra.ub.uni-muenchen.de/36593/1/MPRA_paper_36593.pdf
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    References listed on IDEAS

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    1. Carrington, William J & Zaman, Asad, 1994. "Interindustry Variation in the Costs of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 12(2), pages 243-275, April.
    2. Bell, Linda A, 1997. "The Impact of Minimum Wages in Mexico and Colombia," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 102-135, July.
    3. Gruber, Jonathan, 1997. "The Incidence of Payroll Taxation: Evidence from Chile," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 72-101, July.
    4. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 20-43, July.
    5. Noel Gaston & Daniel Trefler, 1994. "The Role of International Trade and Trade Policy in the Labour Markets of Canada and the United States," The World Economy, Wiley Blackwell, vol. 17(1), pages 45-62, January.
    6. Currie, Janet & Harrison, Ann E, 1997. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 44-71, July.
    7. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, December.
    8. MacIsaac, Donna & Rama, Martin, 1997. "Determinants of Hourly Earnings in Ecuador: The Role of Labor Market Regulations," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 136-165, July.
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    Citations

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    Cited by:

    1. Anwar, Tilat, 2002. "Impact of Globalization and Liberalization on Growth, Employment and Poverty: A Case Study of Pakistan," WIDER Working Paper Series 017, World Institute for Development Economic Research (UNU-WIDER).
    2. Lord, Montague, 2000. "Macroeconomic Dynamics of Egypt: An Integrated Approach to Trade and Exchange Rate Policy Reforms," MPRA Paper 50642, University Library of Munich, Germany.
    3. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex.
    4. Winters, L. Alan, 2000. "Trade, Trade Policy and Poverty: What Are The Links?," CEPR Discussion Papers 2382, C.E.P.R. Discussion Papers.
    5. Khan, haider, 2008. "Analyzing Poverty Impact of Trade Liberalization Policies in CGE Models: Theory and Some Policy Experiments in Agricultural and Non-agricultural Sectors in South Asia," MPRA Paper 7609, University Library of Munich, Germany, revised Mar 2008.
    6. Bernard Hoekman & Alan L. Winters, 2005. "Trade and Employment: Stylized Facts and Research Findings," Working Papers 7, United Nations, Department of Economics and Social Affairs.

    More about this item

    Keywords

    trade reform; labor markets; foreign investment;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F1 - International Economics - - Trade

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