Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment

ILR Review ◽  
2001 ◽  
Vol 55 (1) ◽  
pp. 95 ◽  
Author(s):  
Zadia M. Feliciano
Keyword(s):  
Trade Liberalization ◽  
Trade Reforms ◽  
The Impact

Workers and Trade Liberalization: The Impact of Trade Reforms in Mexico on Wages and Employment

ILR Review ◽  
2001 ◽  
Vol 55 (1) ◽  
pp. 95-115 ◽  
Author(s):  
Zadia M. Feliciano
Keyword(s):  
Trade Liberalization ◽  
Wage Inequality ◽  
Trade Reform ◽  
Trade Reforms ◽  
Relative Wages ◽  
Relative Employment ◽  
Level Data ◽  
Mexican Government ◽  
Micro Level ◽  
The Impact

Between 1986 and 1990, the Mexican government reduced tariffs and import license coverage by more than 50%. The author, using micro-level data, analyzes the impact of trade reform on Mexican wages and employment. Industries that had greater reductions in protection levels, she finds, had a larger percentage of low-skill workers. Wage dispersion increased in both the non-tradables sector and, to a much greater degree, the tradables sector. This pattern suggests that trade reform increased wage inequality. The decline in import license coverage appears to have reduced relative wages of workers in reformed industries by 2%, but did not affect relative employment. Reductions in tariffs had no statistically significant effect on relative wages or relative employment.

The Impact of Trade Reforms on Employment and Welfare in ECOWAS Countries: The Case of Senegal

2016 ◽  
Author(s):  
Sokhna Diarra Mboup ◽  
Racky Baldd ◽  
Thierno Malick Diallo ◽  
Christian Arnault Emini
Keyword(s):  
Trade Reforms ◽  
The Impact

scholarly journals Reciprocal Trade Agreements in Asia: Credible Commitment to Trade Liberalization or Paper Tigers?

2012 ◽  
Vol 12 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Raymond Hicks ◽  
Soo Yeon Kim
Keyword(s):  
Cold War ◽  
Trade Liberalization ◽  
Trade Agreements ◽  
Primary Objective ◽  
Trade Flows ◽  
Institution Building ◽  
Credible Commitment ◽  
Coding Scheme ◽  
The Cold War ◽  
The Impact

Reciprocal trade agreements (RTAs) have proliferated rapidly in Asia in recent years, an unprecedented phenomenon in a region in which state-led institution-building efforts were largely unsuccessful during the Cold War years. In this article, we investigate the qualitative provisions of RTAs in Asia, focusing on agreements that are professedly geared toward trade liberalization through reciprocal exchanges of trade concessions. We build on the concept of credible commitment—that states “tie their hands” through international agreements and thus signal strong commitment to trade liberalization. We argue that a broad range of agreement provisions will affect an RTA's ability to achieve its primary objective: trade liberalization. We present a coding scheme that measures the strength of a wide variety of provisions in the legal texts of RTAs. Using quantitative analysis, we analyze the impact of various components of Asia's RTAs on participants' trade flows.

scholarly journals THE IMPACT OF TRADE LIBERALIZATION BETWEEN UKRAINE AND EU ON TRADE AND INVESTMENT

2021 ◽  
Author(s):  
Volodymyr Olefir ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Trade Liberalization ◽  
Direct Investment ◽  
Free Trade Area ◽  
Comparison Method ◽  
Trade Area ◽  
European Standards ◽  
The Government ◽  
The Impact ◽  
The Eu

The benefits and costs of the implementation of the Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU have been studied. The study aimed to find out to what extent the implementation of DCFTA has helped increase exports and attract foreign direct investment into Ukraine’s economy. A comparison method was used to conduct the study. The period of implementation of the DCFTA (2016-2020) was compared with the period before the implementation of the DCFTA (2010- 2014). Due to trade liberalization, exports of Ukrainian goods to the EU and imports of goods from the EU to Ukraine have increased. Trade liberalization has not contributed to further attracting foreign direct investment from the EU to Ukraine’s economy. The urgent task of the Government of Ukraine is to create a business regulatory environment according to European standards and protect foreign investment.

scholarly journals Trade, skill premium and the gender wage gap: Evidence from manufacturing industries

2021 ◽  
Author(s):  
Kore Marc Antoine Guei
Keyword(s):  
Labour Market ◽  
Trade Liberalization ◽  
Monopolistic Competition ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Skill Premium ◽  
Moderate Increase ◽  
Skill Levels ◽  
Unskilled Labour ◽  
The Impact

Abstract The paper assesses the impact of trade liberalization on the labour market by focusing on skill wage premium. The paper tests these effects by developing a monopolistic competition model with two factors of production characterized by their skill levels (skilled and unskilled labour). The paper finds that tariff’s level reductions cause a moderate increase in the wage gap. Thus, our analysis shows that a 10% decrease in tariffs is accompanied by a 16.1 % increase in the skill premium. Also, the same level of tariffs’ cut will on average increase the gender wage gap by 26.8%. The study implies that trade liberalization tends to benefit more workers in the skilled labour market compared to workers in the unskilled labour market.

Organizational Form and Trade Liberalization: Plant-Level Evidence

2021 ◽  
Author(s):  
John (Jianqiu) Bai
Keyword(s):  
Trade Liberalization ◽  
Core Competency ◽  
Extensive Margin ◽  
Trade Policies ◽  
Trade Shocks ◽  
Internal Organization ◽  
Level Data ◽  
Plant Level ◽  
The Impact ◽  
Aggregate Industry

This paper studies how firms’ internal organization shapes the impact of international trade. Using establishment-level data from the U.S. Census and a difference-in-difference specification, I find that, relative to standalone firms, conglomerates are more likely to restructure after trade liberalization episodes, focusing on their core competency and improving firm productivity and product market performance. Adjustments through the extensive margin account for the majority of the productivity growth differential between conglomerates and standalones experiencing trade shocks. Aggregate industry productivity remains relatively unchanged in industries dominated by conglomerates’ core business but decreases significantly in others. My findings suggest that firms’ internal organization has important consequences on the effects of trade policies. This paper was accepted by Gustavo Manso, finance.

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