Is International Trade Always Beneficial to Labor Markets? : A Case Study from Egypt
The Arab Republic of Egypt’s industries rely heavily on imported goods for production. Thus, an increase in imports could have a potentially positive effect on the labor market as it means more inputs for the production of exporting goods. Alternatively, minimal backward linkages in global value chains could also mean that increasing imports substitute for domestic production and, thus, lost employment opportunities. This paper evaluates the relationship between regional trade agreements using a gravity model and import flows to test whether rising imports have impacted wages, informality, and female labor force participation. The results suggest that imports are not to blame for disappointing labor market outcomes in Egypt.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2022-10
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| Subjects: | IMPORTS, TRADE, LABOR MARKET, INFORMALITY, ECONOMETRICS, BARTIK INSTRUMENTS, INTERNATIONAL TRADE CASE STUDY, INEQUITY, FEMALE LABOR FORCE PARTICIPATION, |
| Online Access: | http://documents.worldbank.org/curated/en/099843010272232097/IDU0f48ad82606cd2048350b32d0407737261426 http://hdl.handle.net/10986/38226 |
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| Summary: | The Arab Republic of Egypt’s
industries rely heavily on imported goods for production.
Thus, an increase in imports could have a potentially
positive effect on the labor market as it means more inputs
for the production of exporting goods. Alternatively,
minimal backward linkages in global value chains could also
mean that increasing imports substitute for domestic
production and, thus, lost employment opportunities. This
paper evaluates the relationship between regional trade
agreements using a gravity model and import flows to test
whether rising imports have impacted wages, informality, and
female labor force participation. The results suggest that
imports are not to blame for disappointing labor market
outcomes in Egypt. |
|---|