Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data?
reviews the micro-level evidence on the effects of trade and investment liberalization in the developing world. He focuses, in particular, on the effects of the 1991 trade reform in India since it provides an excellent controlled experiment in whic...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2003/05/2378823/trade-liberalization-firm-performance-labor-market-outcomes-developing-world-can-learn-micro-level-data http://hdl.handle.net/10986/18220 |
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okr-10986-18220 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGGREGATE DEMAND ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BILATERAL TARIFF CAPACITY BUILDING CAPITAL GOODS CAPITAL STOCK CAPITAL-OUTPUT RATIO COMPARATIVE ADVANTAGE COMPETITIVE MARKETS CONSUMER PRICES DEMAND CURVE DEMAND ELASTICITIES DEMAND ELASTICITY DEVELOPED COUNTRIES DEVELOPMENT DIVISION OF LABOR DOMESTIC FIRMS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PRODUCTION DYNAMIC EFFECTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXPLOITATION EXPORTERS EXTERNALITIES FIXED COSTS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN STANDARDS FOREIGN TARIFF FREE ENTRY FREE TRADE FULL EMPLOYMENT GROWTH RATE HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT COMPETITION IMPORT PENETRATION IMPORT-COMPETING SECTORS IMPORTS INCOME INCOME INEQUALITY INCREASING COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL EXPANSION INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INVESTMENT LIBERALIZATION KNOWLEDGE DIFFUSION KNOWLEDGE SPILLOVERS LABOR MARKET LABOR MARKET OUTCOMES LOCAL FIRMS MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE MEASURE OF TRADE NORMAL PROFITS PER CAPITA INCOME PRICE INDEX PRODUCERS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION RATE OF INNOVATION REDUCTION IN TARIFFS RETURN ON CAPITAL RETURNS TO SCALE SCALE ECONOMIES SCALE EFFECTS SPECIALIZATION STATIC EFFECTS TARIFF PROTECTION TARIFF RATES TARIFF REDUCTIONS TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS TOTAL OUTPUT TRADE TRADE AGREEMENT TRADE COSTS TRADE EFFECTS TRADE INTEGRATION TRADE LIBERALIZATION TRADE LIBERALIZING TRADE MODELS TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE THEORY UNEMPLOYMENT UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UTILITY FUNCTION VALUE OF OUTPUT WAGE INEQUALITY WAGES WELFARE GAINS TRADE LIBERALIZATION SMALL & MEDIUM SCALE ENTERPRISES LABOR MARKET CHARACTERISTICS INVESTMENT OPERATIONS PRODUCTIVITY REALLOCATION OF FUNDS RESOURCES MOBILIZATION RESOURCES UTILIZATION IMPORT LIBERALIZATION COMPETITIVENESS SPILLOVER EFFECTS FOREIGN DIRECT INVESTMENTS LABOR DEMAND ELASTICITY OF DEMAND WAGE RATE WELFARE GAINS TRADE LIBERALIZATION |
| spellingShingle |
AGGREGATE DEMAND ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BILATERAL TARIFF CAPACITY BUILDING CAPITAL GOODS CAPITAL STOCK CAPITAL-OUTPUT RATIO COMPARATIVE ADVANTAGE COMPETITIVE MARKETS CONSUMER PRICES DEMAND CURVE DEMAND ELASTICITIES DEMAND ELASTICITY DEVELOPED COUNTRIES DEVELOPMENT DIVISION OF LABOR DOMESTIC FIRMS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PRODUCTION DYNAMIC EFFECTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXPLOITATION EXPORTERS EXTERNALITIES FIXED COSTS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN STANDARDS FOREIGN TARIFF FREE ENTRY FREE TRADE FULL EMPLOYMENT GROWTH RATE HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT COMPETITION IMPORT PENETRATION IMPORT-COMPETING SECTORS IMPORTS INCOME INCOME INEQUALITY INCREASING COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL EXPANSION INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INVESTMENT LIBERALIZATION KNOWLEDGE DIFFUSION KNOWLEDGE SPILLOVERS LABOR MARKET LABOR MARKET OUTCOMES LOCAL FIRMS MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE MEASURE OF TRADE NORMAL PROFITS PER CAPITA INCOME PRICE INDEX PRODUCERS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION RATE OF INNOVATION REDUCTION IN TARIFFS RETURN ON CAPITAL RETURNS TO SCALE SCALE ECONOMIES SCALE EFFECTS SPECIALIZATION STATIC EFFECTS TARIFF PROTECTION TARIFF RATES TARIFF REDUCTIONS TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS TOTAL OUTPUT TRADE TRADE AGREEMENT TRADE COSTS TRADE EFFECTS TRADE INTEGRATION TRADE LIBERALIZATION TRADE LIBERALIZING TRADE MODELS TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE THEORY UNEMPLOYMENT UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UTILITY FUNCTION VALUE OF OUTPUT WAGE INEQUALITY WAGES WELFARE GAINS TRADE LIBERALIZATION SMALL & MEDIUM SCALE ENTERPRISES LABOR MARKET CHARACTERISTICS INVESTMENT OPERATIONS PRODUCTIVITY REALLOCATION OF FUNDS RESOURCES MOBILIZATION RESOURCES UTILIZATION IMPORT LIBERALIZATION COMPETITIVENESS SPILLOVER EFFECTS FOREIGN DIRECT INVESTMENTS LABOR DEMAND ELASTICITY OF DEMAND WAGE RATE WELFARE GAINS TRADE LIBERALIZATION Epifani, Paolo Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| relation |
Policy Research Working Paper;No. 3063 |
| description |
reviews the micro-level evidence on the
effects of trade and investment liberalization in the
developing world. He focuses, in particular, on the effects
of the 1991 trade reform in India since it provides an
excellent controlled experiment in which the effects of a
drastic trade regime change can be measured. His main
findings are: 1) There is evidence of trade-induced
productivity gains (in this respect, however, India is an
exception. 2) These gains mainly stem from intra-industry
reallocation of resources among firms with different
productivity levels. 3) The gains are larger in
import-competing sectors. 4) There is no evidence of
significant scale efficiency gains. Unilateral trade
liberalization is often associated with a reduced scale
efficiency. 5) There is evidence of a pro-competitive effect
of trade liberalization. 6) There is no evidence either of
learning-by-exporting effects or of beneficial spillover
effects from foreign-owned to local firms active in the same
sectors. 7) There is evidence, however, of positive vertical
spillovers from foreign direct investment. 8) There is
evidence of skill upgrading induced either by technology
imports or by trade-induced reallocations of market shares
in favor of plants with higher skill-intensity. 9) There is
no evidence of trade-induced increases in labor demand
elasticities. But direct evidence suggests that trade
exposure raises wage volatility. 10) There is no evidence of
substantial employment contraction in import-competing sectors. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Epifani, Paolo |
| author_facet |
Epifani, Paolo |
| author_sort |
Epifani, Paolo |
| title |
Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| title_short |
Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| title_full |
Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| title_fullStr |
Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| title_full_unstemmed |
Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? |
| title_sort |
trade liberalization, firm performance, and labor market outcomes in the developing world : what can we learn from micro-level data? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/05/2378823/trade-liberalization-firm-performance-labor-market-outcomes-developing-world-can-learn-micro-level-data http://hdl.handle.net/10986/18220 |
| _version_ |
1764439161786335232 |
| spelling |
okr-10986-182202021-04-23T14:03:41Z Trade Liberalization, Firm Performance, and Labor Market Outcomes in the Developing World : What Can We Learn from Micro-Level Data? Epifani, Paolo AGGREGATE DEMAND ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BILATERAL TARIFF CAPACITY BUILDING CAPITAL GOODS CAPITAL STOCK CAPITAL-OUTPUT RATIO COMPARATIVE ADVANTAGE COMPETITIVE MARKETS CONSUMER PRICES DEMAND CURVE DEMAND ELASTICITIES DEMAND ELASTICITY DEVELOPED COUNTRIES DEVELOPMENT DIVISION OF LABOR DOMESTIC FIRMS DOMESTIC INDUSTRY DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PRODUCTION DYNAMIC EFFECTS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL STUDIES EMPLOYMENT EQUILIBRIUM EXPENDITURES EXPLOITATION EXPORTERS EXTERNALITIES FIXED COSTS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN MARKET FOREIGN MARKETS FOREIGN STANDARDS FOREIGN TARIFF FREE ENTRY FREE TRADE FULL EMPLOYMENT GROWTH RATE HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT COMPETITION IMPORT PENETRATION IMPORT-COMPETING SECTORS IMPORTS INCOME INCOME INEQUALITY INCREASING COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INDUSTRIAL EXPANSION INDUSTRIAL RESTRUCTURING INDUSTRIALIZATION INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INVESTMENT LIBERALIZATION KNOWLEDGE DIFFUSION KNOWLEDGE SPILLOVERS LABOR MARKET LABOR MARKET OUTCOMES LOCAL FIRMS MARGINAL COST MARGINAL COSTS MARGINAL REVENUE MARKET POWER MARKET SHARE MARKET SHARES MARKET STRUCTURE MEASURE OF TRADE NORMAL PROFITS PER CAPITA INCOME PRICE INDEX PRODUCERS PRODUCTION FUNCTION PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION RATE OF INNOVATION REDUCTION IN TARIFFS RETURN ON CAPITAL RETURNS TO SCALE SCALE ECONOMIES SCALE EFFECTS SPECIALIZATION STATIC EFFECTS TARIFF PROTECTION TARIFF RATES TARIFF REDUCTIONS TECHNICAL CHANGE TECHNICAL PROGRESS TECHNOLOGY DIFFUSION TECHNOLOGY TRANSFERS TOTAL OUTPUT TRADE TRADE AGREEMENT TRADE COSTS TRADE EFFECTS TRADE INTEGRATION TRADE LIBERALIZATION TRADE LIBERALIZING TRADE MODELS TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REFORMS TRADE REGIME TRADE THEORY UNEMPLOYMENT UNILATERAL TRADE UNILATERAL TRADE LIBERALIZATION UTILITY FUNCTION VALUE OF OUTPUT WAGE INEQUALITY WAGES WELFARE GAINS TRADE LIBERALIZATION SMALL & MEDIUM SCALE ENTERPRISES LABOR MARKET CHARACTERISTICS INVESTMENT OPERATIONS PRODUCTIVITY REALLOCATION OF FUNDS RESOURCES MOBILIZATION RESOURCES UTILIZATION IMPORT LIBERALIZATION COMPETITIVENESS SPILLOVER EFFECTS FOREIGN DIRECT INVESTMENTS LABOR DEMAND ELASTICITY OF DEMAND WAGE RATE WELFARE GAINS TRADE LIBERALIZATION reviews the micro-level evidence on the effects of trade and investment liberalization in the developing world. He focuses, in particular, on the effects of the 1991 trade reform in India since it provides an excellent controlled experiment in which the effects of a drastic trade regime change can be measured. His main findings are: 1) There is evidence of trade-induced productivity gains (in this respect, however, India is an exception. 2) These gains mainly stem from intra-industry reallocation of resources among firms with different productivity levels. 3) The gains are larger in import-competing sectors. 4) There is no evidence of significant scale efficiency gains. Unilateral trade liberalization is often associated with a reduced scale efficiency. 5) There is evidence of a pro-competitive effect of trade liberalization. 6) There is no evidence either of learning-by-exporting effects or of beneficial spillover effects from foreign-owned to local firms active in the same sectors. 7) There is evidence, however, of positive vertical spillovers from foreign direct investment. 8) There is evidence of skill upgrading induced either by technology imports or by trade-induced reallocations of market shares in favor of plants with higher skill-intensity. 9) There is no evidence of trade-induced increases in labor demand elasticities. But direct evidence suggests that trade exposure raises wage volatility. 10) There is no evidence of substantial employment contraction in import-competing sectors. 2014-05-09T19:06:59Z 2014-05-09T19:06:59Z 2003-05 http://documents.worldbank.org/curated/en/2003/05/2378823/trade-liberalization-firm-performance-labor-market-outcomes-developing-world-can-learn-micro-level-data http://hdl.handle.net/10986/18220 English en_US Policy Research Working Paper;No. 3063 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |