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International firms in developing economies tend to employ more workers and pay higher wages than firms dealing exclusively with the domestic market, according to this paper demonstrating the links between global value chains (GVCs)and labour market outcomes. Engagement in international activities provides greater opportunities for women to enter the formal employment market.
How do global value chains (GVCs) impact employment markets in developing countries? This paper reviews the literature on the subject, focusing on the labour market impacts of three processes that lie at the core of GVC development: importing, exporting, and foreign direct investment (FDI). Two case studies are presented
The extent to which external exposure of the Brazilian economy has contributed to employment is evaluated. Total employment variation was decomposed using the Input-Output Matrix methodology for the years 2000-07 to identify the contribution of the final demand components. The volume of direct employment associated with exports was then estimated according to worker's skill level and the geographical composition of Brazilian exports.
With a growing integration via trade and investment, state-owned enterprises (SOEs) that have traditionally been oriented towards domestic markets increasingly compete with private firms in the global market place. This paper presents a conceptual discussion of how potential SOE advantages can generate cross-border effects.
Drawing on OECD trade facilitation indicators, this paper finds that the combined effect of comprehensive trade facilitation reform would reach almost 14.5% reduction of total trade costs for low income countries, 15.5% for lower middle income countries and 13.2% for upper middle income countries.
Occupation-level analysis of short-term labour market impacts from trade can provide policy makers with better insights than industry-level studies, says this paper using a unique dataset based on harmonised labour force surveys from Canada, Israel, United Kingdom, United States, Brazil and South Africa. For instance, occupation-level data shows that imports can be associated with higher wages and a lower probability of unemployment.
Agricultural trade can be a powerful engine for economic growth, poverty reduction, and development. However, efforts by developing countries to expand their agricultural trade are often hampered by domestic supply-side constraints such as lack of trade-related infrastructure. This report looks at some of the most important of these constraints, and features case studies from Indonesia, Zambia and Mozambique.
This paper focuses on the market openness aspects of regulatory reform in Indonesia to devise recommendations for improving the country’s regulatory processes. These recommendations involve institutionalising independent and objective evaluations of policies from an economy-wide perspective, as well as instituting a process by which broad public consultations are systematically required.
International trade produces income gains, but increased trade exposure also creates some challenges that require complementary policies to maximise the benefits of trade. This paper looks at how Australia has dealt with these issues in recent years.
Trade policy reforms have a role to play in reducing large current account imbalances, this paper finds. A multilateral and co-ordinated approach to reducing imbalances, involving macroeconomic, exchange rate and structural reforms, is essential for achieving maximum benefits for all countries.<