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Trade liberalization, employment and inequality in India and South Africa

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Article

Kucera, David ; Roncolato, Leanne

International Labour Review

2011

150

1-2

June

1-41

employment ; income distribution ; trade liberalization ; social inequality

India ; South Africa

Trade

English

Bibliogr.

"This article uses social accounting matrices in a Leontief multiplier model to estimate the effects of trade expansion on employment and incomes in India and South Africa. The evaluation focuses on a period of rapid trade liberalization beginning in the early 1990s, distinguishing between trade with developed and developing countries. Employment results identify winning and losing industries and examine sex and skill biases. Income results examine inequality measured by household income distribution (rural and urban). Results are presented in the context of trade theory as regards adjustment mechanisms for bringing trade into balance and implications of specialization for economic development."

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