TY - JOUR
T1 - Trade liberalization and labor demand elasticities
T2 - Evidence from Turkey
AU - Krishna, Pravin
AU - Mitra, Devashish
AU - Chinoy, Sajjid
N1 - Funding Information:
We are grateful to Jagdish Bhagwati, Moshe Buchinsky, Andrew Foster, Anjini Kocchar, Tom Krebs, Anne Krueger, James Levinsohn, Arvind Panagariya, Julie Schaffner, James Tybout and especially two anonymous for helpful comments and assistance in getting the data together. Pravin Krishna gratefully acknowledges financial assistance from Brown University in the form of a Salomon faculty research grant as also the hospitality and the intellectual and financial support of the Center for Research on Economic Development and Policy Reform at Stanford University where some of this research was conducted.
PY - 2001
Y1 - 2001
N2 - 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.
AB - 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.
KW - Factor demand elasticities
KW - Imperfect competition
KW - Trade reforms
KW - Turkey
UR - http://www.scopus.com/inward/record.url?scp=0035186107&partnerID=8YFLogxK
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U2 - 10.1016/S0022-1996(01)00089-7
DO - 10.1016/S0022-1996(01)00089-7
M3 - Article
AN - SCOPUS:0035186107
SN - 0022-1996
VL - 55
SP - 391
EP - 409
JO - Journal of International Economics
JF - Journal of International Economics
IS - 2
ER -