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1980’s and 1990’s - Brazil and Colombia - we examine the response of the informal sector to liberalization. In Brazil, we … find no evidence of a relationship between trade policy and informality. In Colombia, we do find evidence of such a …
Persistent link: https://www.econbiz.de/10005661732
We investigate the effects of the drastic tariff reductions of the 1980s and 1990s in Colombia on the wage distribution …, changes in industry wages that hurt sectors with initially lower wages and a higher fraction of unskilled workers, and shifts … of the labour force towards the informal sector that typically pays lower wages and offers no benefits. Our results …
Persistent link: https://www.econbiz.de/10005666889
Persistent link: https://www.econbiz.de/10005631005
Based on the observation that industries are often geographically concentrated, this paper proposes a new political economy model of trade protection. We associate the sectors of a specific factors model with electoral districts populated by continua of heterogeneous voters who differ in their...
Persistent link: https://www.econbiz.de/10010296223
We analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens...
Persistent link: https://www.econbiz.de/10011398023
Based on the observation that industries are often geographically concentrated, this paper proposes a new political economy model of trade protection. We associate the sectors of a specific factors model with electoral districts populated by continua of heterogeneous voters who differ in their...
Persistent link: https://www.econbiz.de/10005082848
Economic theory and empirical studies consistently support the case for free trade. With such a point of departure, the difficulties concluding the Uruguay Round of trade negotiations and the widespread use of protectionist measures in general seem paradoxical. However, through the introduction...
Persistent link: https://www.econbiz.de/10005543478
We propose a simple and flexible econometric approach to quantify ex-ante the "deep" impact of trade liberalization and the "hard" effects of protection with the empirical structural gravity model. Specifically, we argue that the difference between the estimates of border indicator variables for...
Persistent link: https://www.econbiz.de/10012599928
Trade facilitation policies intend to simplify administrative processes and accelerate the handling of shipments across borders. Recent research shows that these policies have substantial effects on trade flows. In this chapter, we discuss what the existing evidence for trade implies for the...
Persistent link: https://www.econbiz.de/10011625949
Trade and investment can be effective means of implementation of the 2030 Sustainable Development Agenda. However, stand-alone trade and investment liberalization policies aimed at enhancing economic development may have negative side-effects on non-economic facets of sustainable development. As...
Persistent link: https://www.econbiz.de/10011773529