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Export Liberalization, Job Creation, and the Skill Premium: Evidence from the US–Vietnam Bilateral Trade Agreement (BTA)

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  • Fukase, Emiko

Abstract

This paper explores how the expansion of labor-intensive manufacturing exports resulting from the 2001 US–Vietnam Bilateral Trade Agreement affected changes in wages in Vietnam through the channel of labor demand. Using the data on panel individuals from the Vietnam Household Living Standards Surveys of 2002 and 2004, and addressing the issue of endogeneity, the results confirm the existence of a Stolper–Samuelson type effect, i.e., those provinces more exposed to the increase in exports experienced a relatively larger wage growth for unskilled workers and a decline of (or a smaller increase in) the relative wage of skilled and unskilled workers.

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  • Fukase, Emiko, 2013. "Export Liberalization, Job Creation, and the Skill Premium: Evidence from the US–Vietnam Bilateral Trade Agreement (BTA)," World Development, Elsevier, vol. 41(C), pages 317-337.
    • Handle: RePEc:eee:wdevel:v:41:y:2013:i:c:p:317-337
    DOI: 10.1016/j.worlddev.2012.05.035
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    6. Emiko Fukase & Will Martin, 2016. "Agro-processing and horticultural exports from Africa," WIDER Working Paper Series 174, World Institute for Development Economic Research (UNU-WIDER).
    7. Yessi Vadila & Budy P. Resosudarmo, 2020. "Tariff reform and income inequality in Indonesia," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 455-475, June.
    8. Fukase,Emiko & Martin,William J. & Fukase,Emiko & Martin,William J., 2015. "Economic implications of a potential free trade agreement between India and the United States," Policy Research Working Paper Series 7212, The World Bank.
    9. Poole, Jennifer & Santos-Paulino, Amelia & Sokolova, Maria & DiCaprio, Alisa, 2017. "The Impact of Trade and Technology on Skills in Viet Nam," ADBI Working Papers 770, Asian Development Bank Institute.
    10. Cali,Massimiliano & Hollweg,Claire Honore & Ruppert Bulmer,Elizabeth N., 2015. "Seeking shared prosperity through trade," Policy Research Working Paper Series 7314, The World Bank.
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    14. Johannes Schwarzer, 2016. "Trade and Employment. An Overview," Discussion Notes 1601, Council on Economic Policies.
    15. Prodyumna Goutam & Italo A. Gutierrez & Krishna B. Kumar & Shanthi Nataraj, 2017. "Does Informal Employment Respond to Growth Opportunities? Trade-Based Evidence from Bangladesh," Working Papers WR-1198, RAND Corporation.
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    21. Woocheol Lee, 2023. "Trade Liberalization, Distributional Coalitions and Economic Growth: A Case of Vietnam," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
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    23. Diep Phan & Ian Coxhead, 2020. "Persistent Privilege? Institutional Education Gaps during Vietnam's Economic Boom," Working Papers 2020-023, Human Capital and Economic Opportunity Working Group.
    24. Prodyumna Goutam & Italo A. Gutierrez & Krishna B. Kumar & Shanthi Nataraj, 2017. "Does Informal Employment Respond to Growth Opportunities? Trade-Based Evidence from Bangladesh," Working Papers 1198, RAND Corporation.

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