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Trade Liberalization and Employment

Author

Listed:
  • Eddy Lee
Abstract
This paper reviews both multi-country and country studies on the impact of trade liberalization on growth and employment in developing countries. These studies reveal sharply contrasting effects of trade liberalization on employment, suggesting that country-specific and contingent factors are important. In particular, differences in how trade liberalization is implemented are particularly important. In order to be successful, trade liberalization needs to be embedded within a coherent set of macroeconomic, structural and social policies.

Suggested Citation

  • Eddy Lee, 2005. "Trade Liberalization and Employment," Working Papers 5, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:5
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    File URL: http://www.un.org/esa/desa/papers/2005/wp5_2005.pdf
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    References listed on IDEAS

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    1. Pierre-Richard Agénor & Mr. Joshua Aizenman, 1995. "Trade Liberalization and Unemployment," IMF Working Papers 1995/020, International Monetary Fund.
    2. Levinsohn, James, 1999. "Employment responses to international liberalization in Chile," Journal of International Economics, Elsevier, vol. 47(2), pages 321-344, April.
    3. Rattso, Jorn & Torvik, Ragnar, 1998. "Zimbabwean Trade Liberalisation: Ex Post Evaluation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(3), pages 325-346, May.
    4. Rodrik, Dani & van Ypersele, Tanguy, 2001. "Captial mobility, distributive conflict and international tax coordination," Journal of International Economics, Elsevier, vol. 54(1), pages 57-73, June.
    5. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    6. Janet Currie & Ann Harrison, 2022. "Sharing the Costs: The Impact of Trade Reform on Capital and Labor in Morocco," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 2, pages 15-42, World Scientific Publishing Co. Pte. Ltd..
    7. Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
    8. Feenstra, Robert C. & Hanson, Gordon H., 1997. "Foreign direct investment and relative wages: Evidence from Mexico's maquiladoras," Journal of International Economics, Elsevier, vol. 42(3-4), pages 371-393, May.
    9. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
    10. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
    11. Greenaway, David & Morgan, Wyn & Wright, Peter W, 1998. "Trade Reform, Adjustment and Growth: What Does the Evidence Tell Us?," Economic Journal, Royal Economic Society, vol. 108(450), pages 1547-1561, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Justina A.V. Fischer, 2015. "Globalized Markets, Globalized Information, and Female Employment: Accounting for Regional Differences in 30 OECD Countries," AIEL Series in Labour Economics, in: Chiara Mussida & Francesco Pastore (ed.), Geographical Labor Market Imbalances. Recent Explanations and Cures, edition 1, chapter 13, pages Universit, AIEL - Associazione Italiana Economisti del Lavoro.
    2. Kemboi Michael Kipkorir & Martine Oleche, 2020. "Short and Long-Run Impact of Trade Liberalization on Agricultural Growth in Kenya," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(3), pages 117-131.
    3. Ha Thi Thanh Doan & Trinh Quang Long, 2019. "Technical Change, Exports, and Employment Growth in China: A Structural Decomposition Analysis," Asian Economic Papers, MIT Press, vol. 18(2), pages 28-46, Summer.
    4. Stojčić, Nebojša & Vojinić, Perica & Aralica, Zoran, 2018. "Trade liberalization and export transformation in new EU member states," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 114-126.
    5. Mehmet Huseyin Bilgin, 2019. "Trade Liberalization: Is It Desirable for All Developing Economies?: A Literature Review," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 199-204, December.
    6. Vashisht, Pankaj, 2016. "Creating manufacturing jobs in India: Has openness to trade really helped?," Journal of Asian Economics, Elsevier, vol. 42(C), pages 53-64.
    7. Sèna Kimm Gnangnon, 2020. "Aid for Trade and sectoral employment diversification in recipient-countries," Economic Change and Restructuring, Springer, vol. 53(2), pages 265-295, May.
    8. Xiao-Jun Goh & Wen-Qi Tong & Tuck-Cheong Tang, 2019. "Financial Openness and Trade Openness Nexus: Empirical Evidence from Global Data," Capital Markets Review, Malaysian Finance Association, vol. 27(1), pages 1-18.

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    More about this item

    Keywords

    employment; wage differentials; trade liberalization; developing countries;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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