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Labor markets, foregin investment and trade policy reform

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  • Harrison, Ann
  • Revenga, Ana

Abstract

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.

Suggested Citation

  • Harrison, Ann & Revenga, Ana, 1997. "Labor markets, foregin investment and trade policy reform," MPRA Paper 36593, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36593
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    References listed on IDEAS

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    Cited by:

    1. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2005. "Short‐term Consequences of Trade Reform for Industry Employment and Wages: Survey of Evidence from Colombia," The World Economy, Wiley Blackwell, vol. 28(7), pages 923-939, July.
    2. Atif Khan Jadoon & Ambreen Sarwar, 2020. "Is Trade Liberalisation Pro‐Poor in Pakistan? Evidence from Large‐Scale Manufacturing," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 360-394, September.
    3. Ashmita Gupta, 2021. "Effect of Trade Liberalization on Gender Inequality: The Case of India," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 69(4), pages 682-720, December.
    4. Hoekman & Bernard & Winters, L. Alan, 2005. "Trade and employment : stylized facts and research findings," Policy Research Working Paper Series 3676, The World Bank.
    5. Tilat Anwar, 2002. "Impact of Globalization and Liberalization on Growth, Employment and Poverty: A Case Study of Pakistan," WIDER Working Paper Series DP2002-17, World Institute for Development Economic Research (UNU-WIDER).
    6. Lord, Montague, 2000. "Macroeconomic Dynamics of Egypt: An Integrated Approach to Trade and Exchange Rate Policy Reforms," MPRA Paper 50642, University Library of Munich, Germany.
    7. repec:pru:wpaper:7 is not listed on IDEAS
    8. Winters, L Alan, 2000. "Trade, Trade Policy and Poverty: What Are The Links?," CEPR Discussion Papers 2382, C.E.P.R. Discussion Papers.
    9. Khan, haider, 2008. "Analyzing Poverty Impact of Trade Liberalization Policies in CGE Models: Theory and Some Policy Experiments in Agricultural and Non-agricultural Sectors in South Asia," MPRA Paper 7609, University Library of Munich, Germany, revised Mar 2008.

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    More about this item

    Keywords

    trade reform; labor markets; foreign investment;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F1 - International Economics - - Trade

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