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Labor markets, foregin investment and trade policy reform

Ann Harrison () and Ana Revenga

MPRA Paper from University Library of Munich, Germany

Abstract: This chapter reviews the available evidence on the linkages between trade reform, labor markets, and FDI. We begin by drawing on studies of sixteen countries that underwent trade reforms in the 1980s and 1990s. These sixteen countries were chosen because of their inclusion in the United Nations Development Programme (UNDP)-World Bank Trade Expansion Program (YEP). Wherever possible, we supplement these studies with additional studies and empirical evidence. The evidence suggests that the employment and wage effects of trade reforms are generally small. The only exceptions are in the transitional econo¬mies, such as Czechoslovakia, Mongolia, Poland, and Romania, where trade reforms were accompanied by a restructuring of the entire economy. In these countries, however, it is difficult to distinguish the effects of trade reform from the overall transformation of the economy.

Keywords: trade reform; labor markets; foreign investment (search for similar items in EconPapers)
JEL-codes: F1 F13 F16 F23 (search for similar items in EconPapers)
Date: 1997
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Published in Trade policy reform: lessons and implications (1998): pp. 247-276

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