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The Impact of International Trade on Labour Markets. The Case of Outward Processing Traffic between the European Union and Central Eastern European Countries

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Abstract

In this paper we are trying to evaluate the differential impact of Outward Processing Traffic (OPT) flows with respect to the final trade flows on the labour markets of EU countries. In particular, two EU countries are investigated, Germany and Italy, because of their relevance on total EU-CEEC OPT flows and because they embody two different models of outsourcing towards CEECs. The factor content of trade (FCT) analysis conducted at both levels of inter-industry trade and intra-industry trade signals a more relevant impact of OPT flows than final flows. In particular, results suggest that the labour market effects of intra-industry trade flows deriving from the vertical disintegration of production add significantly to the estimated factor market impact of trade.

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  • Giuseppe Celi, 2000. "The Impact of International Trade on Labour Markets. The Case of Outward Processing Traffic between the European Union and Central Eastern European Countries," CELPE Discussion Papers 54, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:54
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    1. Kamal Abd-el-Rahman, 1991. "Firms’ competitive and national comparative advantages as joint determinants of trade composition," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 83-97, March.
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    More about this item

    Keywords

    intra-industry trade; EU-CEEC trade; vertical disintegration; quality differentiation; labour market effects of international trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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