Reassessing the Impacts of Exports on Local Labor Market Outcomes: A Supply Chain Perspective — Evidence from the Arab Republic of Egypt

Pablo Antonio Tillan, Deeksha Kokas, Carlos Andre Bezerra De Goes and Gladys C. Lopez-Acevedo
Authors registered in the RePEc Author Service: Gladys Lopez-Acevedo

No 10614, Policy Research Working Paper Series from The World Bank

Abstract: This paper examines the overall impact of exports while accounting for supply chain linkages on local labor market outcomes in the Arab Republic of Egypt between 2007 and 2018. The paper assesses the effects not only on directly exporting industries, but also on industries indirectly affected by rising export demand. Furthermore, it examines potential impacts on specific groups of workers, such as high-skilled individuals and female workers. The results show that trade does not lead to the same connection with domestic labor markets in Egypt as observed in other countries, as highlighted in the existing literature explaining the adverse effects of imports on developing countries. Despite being more open to trade, trade-intensive industries in Egypt have not experienced a significant increase in their share of employment within the overall workforce. To harness the benefits of trade, Egypt must undertake deeper reforms aimed at significantly expanding the export sector.

Date: 2023-11-21
New Economics Papers: this item is included in nep-ara and nep-int
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