Trade liberalization and labor demand elasticities: Evidence from Turkey

Pravin Krishna, Devashish Mitra, Sajjid Chinoy

Research output: Contribution to journalArticle

44 Scopus citations

Abstract

In the recent debate over the impact of trade reform on factor markets, it has been argued that trade liberalization will lead to an increase in labor-demand elasticities - thus placing labor markets under increased pressure. Using Turkish plant-level data spanning the course of a dramatic trade liberalization, we test this idea. However, we are unable to find any empirical support for this supposed theoritical link: in most of the industries we consider, we cannot reject the hypothesis of no relationship between trade openness and labor-demand elasticities.

Original languageEnglish (US)
Pages (from-to)391-409
Number of pages19
JournalJournal of International Economics
Volume55
Issue number2
DOIs
StatePublished - Dec 6 2001
Externally publishedYes

Keywords

  • Factor demand elasticities
  • Imperfect competition
  • Trade reforms
  • Turkey

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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