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Is International Trade Always Beneficial to Labor Markets ? A Case Study from Egypt

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  • Robertson,Raymond
  • Vergara Bahena,Mexico Alberto
  • Lopez-Acevedo,Gladys C.

Abstract

The Arab Republic of Egypt’s industries rely heavily on imported goods for production.Thus, an increase in imports could have a potentially positive effect on the labor market as it means more inputsfor the production of exporting goods. Alternatively, minimal backward linkages in global value chains could alsomean that increasing imports substitute for domestic production and, thus, lost employment opportunities. Thispaper evaluates the relationship between regional trade agreements using a gravity model and import flows to testwhether rising imports have impacted wages, informality, and female labor force participation. The results suggest thatimports are not to blame for disappointing labor market outcomes in Egypt.

Suggested Citation

  • Robertson,Raymond & Vergara Bahena,Mexico Alberto & Lopez-Acevedo,Gladys C., 2022. "Is International Trade Always Beneficial to Labor Markets ? A Case Study from Egypt," Policy Research Working Paper Series 10219, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10219
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    References listed on IDEAS

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    JEL classification:

    • F1 - International Economics - - Trade
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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