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Does Trade Liberalization Increase the Labor Demand Elasticities? Evidence from Pakistan

  • Akhter, Naseem
  • Ali, Amanat

This study measure the linkage of trade liberalization and labor demand elasticities. Using Pakistan firm-level data, spanning the course of trade liberalization, study try to determine whether the trade liberalization increase the own price labor demand elasticities in the manufacturing sector of Pakistan. Elasticities are measure for production workers and non-production workers for major eleven industries at individual level at first and later elasticities are measured by pooling data across the industries at aggregate level. However, in most of the industries, study unable to find any empirical support for the hypothesis of no relationship between trade liberalization and labor demand elasticities in case of Pakistan.

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File URL: https://mpra.ub.uni-muenchen.de/3881/1/MPRA_paper_3881.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3881.

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Date of creation: Jun 2007
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Handle: RePEc:pra:mprapa:3881
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  1. 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.
  2. Utsav Kumar & Prachi Mishra, 2008. "Trade Liberalization and Wage Inequality: Evidence from India," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 291-311, 05.
  3. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand andtrade reform in Latin America," Policy Research Working Paper Series 2491, The World Bank.
  4. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan : The Role of Excluded Variables in Poverty Change Analysis," Development Economics Working Papers 22224, East Asian Bureau of Economic Research.
  5. 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.
  6. A. R. Kemal & Rehana Siddiqui & Rizwana Siddiqui, 2001. "Tariff Reduction and Income Distribution: A CGE-based Analysis for Urban and Rural Households in Pakistan," MIMAP Technical Paper Series 2001:11, Pakistan Institute of Development Economics.
  7. Krishna, Pravin & Mitra, Devashish, 1998. "Trade liberalization, market discipline and productivity growth: new evidence from India," Journal of Development Economics, Elsevier, vol. 56(2), pages 447-462, August.
  8. Krishna, Pravin & Mitra, Devashish & Chinoy, Sajjid, 2001. "Trade liberalization and labor demand elasticities: evidence from Turkey," Journal of International Economics, Elsevier, vol. 55(2), pages 391-409, December.
  9. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
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