Trade Liberalisation and Employment Effects in Ukraine

Atanas Christev, Olga Kupets and Hartmut Lehmann ()

No 506, CERT Discussion Papers from Centre for Economic Reform and Transformation, Heriot Watt University

Abstract: This paper addresses a controversial issue in the current literature, namely the effects of trade liberalisation on labour market job flows. It studies the case of Ukraine where we view the sudden openness of the economy to trade as a quasi-natural experiment. We use disaggregated data on manufacturing industries and customs data on trade flows according to the shifting trade patterns after the disintegration of CMEA trade regime. We provide some first evidence that 3-digit NACE sector job flows are driven by idiosyncratic factors within industries. Other things equal, there is increased labour shedding as larger non-state share in industry relates to less job creation and more job destruction. Trade openness does affect job flows in Ukrainian manufacturing disproportionately according to trade orientation. We find that while trade with CIS decreases job destruction, trade with the EU increases excess reallocation mainly through job creation.

Keywords: Job creation; job destruction; Ukraine; trade flows (search for similar items in EconPapers)
JEL-codes: E24 F14 J63 P23 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-int, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Trade Liberalisation and Employment Effects in Ukraine (2008)
Working Paper: Trade Liberalization and Employment Effects in Ukraine (2005)
Working Paper: Trade Liberalization and Employment Effects in Ukraine (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hwe:certdp:0506

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