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

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  • Akhter, Naseem
  • Ali, Amanat

Abstract

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.

Suggested Citation

  • Akhter, Naseem & Ali, Amanat, 2007. "Does Trade Liberalization Increase the Labor Demand Elasticities? Evidence from Pakistan," MPRA Paper 3881, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3881
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    References listed on IDEAS

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    1. Muhammad Ali Chaudhary & Eatzaz Ahmad & Abid A. Burki & Mushtaq A. Khan, 1999. "Industrial Sector Input Demand Responsiveness and Policy Interventions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1083-1100.
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    4. 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.
    5. Rizwana Siddiqui & A. R. Kemal, 2006. "Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 383-415.
    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. Ms. Prachi Mishra & Mr. Utsav Kumar, 2005. "Trade Liberalization and Wage Inequality: Evidence From India," IMF Working Papers 2005/020, International Monetary Fund.
    8. 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.
    9. Fajnzylber, Pablo & Maloney, William F., 2005. "Labor demand and trade reform in Latin America," Journal of International Economics, Elsevier, vol. 66(2), pages 423-446, July.
    10. Slaughter, Matthew J., 2001. "International trade and labor-demand elasticities," Journal of International Economics, Elsevier, vol. 54(1), pages 27-56, June.
    11. 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.
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    Cited by:

    1. Nazier, Hanan, 2020. "Female labor in Egyptian manufacturing sector: The demand side story," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 1-11.
    2. Hanan Nazier, 2019. "Estimating Labor Demand Elasticities and Elasticities of Substitution in Egyptian Manufacturing Sector: A Firm-Level Static Analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 549-575, December.

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    More about this item

    Keywords

    Trade liberalization; elasticities; Production and non Production worker; Pakistan;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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