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Labor markets, foregin investment and trade policy reform

  • Harrison, Ann
  • Revenga, Ana

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.

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File URL: https://mpra.ub.uni-muenchen.de/36593/1/MPRA_paper_36593.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36593.

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Date of creation: 1997
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Handle: RePEc:pra:mprapa:36593
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  1. 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 S20-43, July.
  2. 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 243-75, April.
  3. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, October.
  4. 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, 01.
  5. 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 S102-35, July.
  6. Jonathan Gruber, 1995. "The Incidence of Payroll Taxation: Evidence from Chile," NBER Working Papers 5053, National Bureau of Economic Research, Inc.
  7. 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 S44-71, July.
  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 S136-65, July.
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