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Trade Policies, Wage Level and Profitability in the Manufacturing Sector in Jordan (1976-1998)

Author

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  • Ibrahim Saif

    (Center for Strategic Studies, University of Jordan)

Abstract

The impact of trade liberalization on the manufacturing sector in the developing countries has long been debated. The most important issues have been efficiency and enhancing competitiveness. Welfare implications received less attention, in particular income distribution and the impact on wage level and profitability. This study focuses on the relationship between trade liberalization, as part of the structural adjustment program, and profitability and wages and salaries in the manufacturing sector in Jordan over the period 1976-1998. The study makes no claim regarding the direction of causality, it has never the less shows that wages and salaries have declined in real terms during the period of ?trade liberalization? while in the meantime manufacturers achieved almost the same level of profit margin suggesting that wage earners became worse off during the period under investigation.

Suggested Citation

  • Ibrahim Saif, 2002. "Trade Policies, Wage Level and Profitability in the Manufacturing Sector in Jordan (1976-1998)," Working Papers 0233, Economic Research Forum, revised 07 Nov 2002.
    • Handle: RePEc:erg:wpaper:0233
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    References listed on IDEAS

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    1. Anne O. Krueger, 1983. "Trade and Employment in Developing Countries, Volume 3: Synthesis and Conclusions," NBER Books, National Bureau of Economic Research, Inc, number krue83-1.
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    3. Hall, Robert E, 1988. "The Relation between Price and Marginal Cost in U.S. Industry," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 921-947, October.
    4. Funke, Michael, 1986. "Influences on the Profitability of the Manufacturing Sector in the UK--An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(2), pages 165-187, May.
    5. Caves, Richard E, 1980. "International Trade and Industrial Organization: Introduction," Journal of Industrial Economics, Wiley Blackwell, vol. 29(2), pages 113-117, December.
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