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DO INTERNATIONAL TRADE AND LABOR STANDARDS AMELIORATE SYNCHRONOUSLY? ESTIMATION OF LABOR DEMAND ELASTICITY IN TURKEY1

Year 2011, Issue: 6, 0 - , 13.05.2015

Abstract

The broad objective of this paper is to examine the challenges faced by the Turkish labor market in the aftermath of the so-called trade liberalization period, particularly questioning whether a prominent change in pattern can be observed in labor demand elasticity. In the study, labor demand elasticities in the export-ing and import-competing sectors are estimated based on research undertaken between the years 1984 to 2001. Thus, the study looks for a vigorous link, or a dichotomy - if there is - between the strategies to stimulate international trade and the demand for labor.

References

  • AGGARWAL, M. (1995), “International Trade, Labor Standards, and Labor Market Conditions: An Evaluation of the Linkages”, USITC, Office of Economics Working Paper No. 95-06-C (June). AKHMEDOV, A., E. BESSONOVA, I. CHERKASHIN and E. GRISHINA (2005), “Adjustment Costs of Trade Liberalization: Estimations for the Russian La-bor Market”, CEFIR / NES Working Paper Series, No 86. ARELLANO, M. and S. Bond, (1991), Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations, The Review of Economic Studies, 58, pp. 277 – 297. ASIAN DEVELOPMENT BANK (2006), Core Labor Standards Handbook, Philippines, Also available at: http://www.adb.org/Documents/Handbooks/Core-Labor-Standards/CLS-Handbook.pdf BARRY, C. and S. G. REDDY (2007), “International Trade and Labor Standards: A Proposal for Linkage”, Cornell International Law Journal, Columbia University Press, 546-639. BRONSTEIN, A. (2003), Labor Law Reform in EU Candidate Coun-tries:Achievements and Challenges, ILO Working Paper No 3, International Labor Office, Geneva. BROWN, D. K. (2001), “Labor Standards: Where Do They Belong on the International Trade Agenda?”, Journal of Economic Perspective, Vol. 15,No. 3, 89-112. BROWN, D. K. (2000), “International Trade and Core Labour Standards: A Survey of the Recent Literature,” Labour Market and Social Policy, Occasional Papers No. 43 (October), Paris: OECD. BROWN, D. K., A. V. DEARDOFF and R. M. STERN (1996), “International Labor Standards and Trade: A Theoretical Analysis,” (in Jagdish Bhagwati and Robert Hudec Ed.), Fair Trade and Harmonization: Prerequisites for Free Trade? Economic Analysis, Cambridge and London: MIT Press, 227–80. COTTON, A.P., M. SOHAIL and R.E. SCOTT (2005), “Towards Improved Labor Standards for Construction of Minor Works in Low Income Countries”, Engineering, Construction and Architectural Management, Vol.12, No.6, pp. 617-632. DERELİ, T. (2006), Labor Law and Industrial Relations in Turkey, International Encyclopedia of Labor Law and Industrial Relations, Netherlands, Kluwer Law International.
  • GOH, C. and B. S. JAVORCIK (2004), “Trade Protection and Industry Wage Structure in Poland,” in Ann Harrison (ed.), Globalization and Poverty, NBER. HAMERMERSH, D. S. (1993), Labor Demand, Princeton University Press, Princeton, NJ. HEPPLE, B. (2006), Labor Laws and Global Trade, 44 British Journal of Industrial Relations 582 HOLTZ-EAKIN (1988), D., W. Newey and H. S. Rosen, “Estimating Vector Autoregressions with Panel Data, Econometrica 56. pp. 1371 – 1395. ILO - International Labor Organization (2008), Social dialogue and skills de-velopment: Tripartite approaches to training in Singapore. http://www.ilo.org/public/english/dialogue/ifpdial/downloads/papers/candidate.pdf, Accessed Aug. 2007. ILO - International Labor Organization (2004), The Fundamental Principles and Rights at Work 2004, Organizing for Social Justice, Geneva, Also available at: http://www.ilo.org/public/english/region/eurpro/moscow/news/2004/pressreleaseeng.pdf. KRISHNA, P., D., MITRA and S., CHINOY (2001), “TradeLliberalization and Labor Demand Elasticities: Evidence from Turkey”, Journal of International Economics 55, 391–409. KRUEGER, A. (2004), “Trade Liberalization and Economic Performance: An Overview, The Economic Journal, 114 (February), F4–F21. LIMAO, N. (2005), "Trade policy, cross-border externalities and lobbies: Do linked agreements enforce more cooperative outcomes?", Journal of International Economics, Elsevier, Vol. 67, No.1, 175-199. MASKUS, K. (1997) “Should Core Labor Standards Be Imposed through International Trade Policy?”, The World Economy 20, No. 6, September. Also available in: http://www.worldbank.org/research/trade/wp1817.html MATUSZ, S., and D. TARR (2000), “Adjusting to Trade Liberalization,” (in Anne O.Krueger -Ed.), Economic Policy Reform: The Second Stage, Chicago: The University of Chicago Press. MILANOVIC, B., and L. SQUIRE (2005), “Does Trade Liberalization Increase Wage Inequality? Some Empirical Evidence”, NBER Working Paper No. 11046. OECD - Organization for Economic Cooperation and Development (2000), International Trade and Core Labor Standards, OECD Publications, Paris.
  • OECD - Organization for Economic Cooperation and Development – (1996), Trade, Employment and Labor Standards: A Study of Core Workers‟ Rights and International Trade, Paris. POLASKI, S. (2003), “Trade and Labor Standards: A Strategy for Developing Countries”, Trade Equity and Development Project 2003, Carnegie En-dowment for International Peace. Also available at: http://www.carnegieendowment.org/pdf/files/Polaski_Trade_English.pdf RODRIK, D. (1996), “Labor Standards in International Trade: Do They Matter and What Do We Do About Them?” In Robert Lawrence, Dani Rodrik, and John Whalley (eds.), Emerging Agenda for Global Trade: High Stakes for Developing Countries. Washington, D.C.: Overseas Development Council. SRINIVASAN, T. N. (1995) “International Trade and Labor Standards”, (in Pitou van Dijck and Gerrit Faber-Ed.., Challenges to the New World Trade Organization), Amsterdam: Martinus Nijhoff/Kluwer, 1-43. STERN, R. M. (2003), “Labor Standards and Trade Agreements” University of Michigan, Discussion Paper No. 496, 1-24. ZADEK, S. and A. MC GILLIVRAY (2008), “Responsible competitiveness: making sustainability count in global markets”, Harvard International Review, Harvard International Relations Council, Inc., Vol.30, No.2, 72-78.

DO INTERNATIONAL TRADE AND LABOR STANDARDS AMELIORATE SYNCHRONOUSLY? ESTIMATION OF LABOR DEMAND ELASTICITY IN TURKEY1

Year 2011, Issue: 6, 0 - , 13.05.2015

Abstract

The broad objective of this paper is to examine the challenges faced by the Turkish labor market in the aftermath of the so-called trade liberalization period, particularly questioning whether a prominent change in pattern can be observed in labor demand elasticity. In the study, labor demand elasticities in the export-ing and import-competing sectors are estimated based on research undertaken between the years 1984 to 2001. Thus, the study looks for a vigorous link, or a dichotomy - if there is - between the strategies to stimulate international trade and the demand for labor.

References

  • AGGARWAL, M. (1995), “International Trade, Labor Standards, and Labor Market Conditions: An Evaluation of the Linkages”, USITC, Office of Economics Working Paper No. 95-06-C (June). AKHMEDOV, A., E. BESSONOVA, I. CHERKASHIN and E. GRISHINA (2005), “Adjustment Costs of Trade Liberalization: Estimations for the Russian La-bor Market”, CEFIR / NES Working Paper Series, No 86. ARELLANO, M. and S. Bond, (1991), Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations, The Review of Economic Studies, 58, pp. 277 – 297. ASIAN DEVELOPMENT BANK (2006), Core Labor Standards Handbook, Philippines, Also available at: http://www.adb.org/Documents/Handbooks/Core-Labor-Standards/CLS-Handbook.pdf BARRY, C. and S. G. REDDY (2007), “International Trade and Labor Standards: A Proposal for Linkage”, Cornell International Law Journal, Columbia University Press, 546-639. BRONSTEIN, A. (2003), Labor Law Reform in EU Candidate Coun-tries:Achievements and Challenges, ILO Working Paper No 3, International Labor Office, Geneva. BROWN, D. K. (2001), “Labor Standards: Where Do They Belong on the International Trade Agenda?”, Journal of Economic Perspective, Vol. 15,No. 3, 89-112. BROWN, D. K. (2000), “International Trade and Core Labour Standards: A Survey of the Recent Literature,” Labour Market and Social Policy, Occasional Papers No. 43 (October), Paris: OECD. BROWN, D. K., A. V. DEARDOFF and R. M. STERN (1996), “International Labor Standards and Trade: A Theoretical Analysis,” (in Jagdish Bhagwati and Robert Hudec Ed.), Fair Trade and Harmonization: Prerequisites for Free Trade? Economic Analysis, Cambridge and London: MIT Press, 227–80. COTTON, A.P., M. SOHAIL and R.E. SCOTT (2005), “Towards Improved Labor Standards for Construction of Minor Works in Low Income Countries”, Engineering, Construction and Architectural Management, Vol.12, No.6, pp. 617-632. DERELİ, T. (2006), Labor Law and Industrial Relations in Turkey, International Encyclopedia of Labor Law and Industrial Relations, Netherlands, Kluwer Law International.
  • GOH, C. and B. S. JAVORCIK (2004), “Trade Protection and Industry Wage Structure in Poland,” in Ann Harrison (ed.), Globalization and Poverty, NBER. HAMERMERSH, D. S. (1993), Labor Demand, Princeton University Press, Princeton, NJ. HEPPLE, B. (2006), Labor Laws and Global Trade, 44 British Journal of Industrial Relations 582 HOLTZ-EAKIN (1988), D., W. Newey and H. S. Rosen, “Estimating Vector Autoregressions with Panel Data, Econometrica 56. pp. 1371 – 1395. ILO - International Labor Organization (2008), Social dialogue and skills de-velopment: Tripartite approaches to training in Singapore. http://www.ilo.org/public/english/dialogue/ifpdial/downloads/papers/candidate.pdf, Accessed Aug. 2007. ILO - International Labor Organization (2004), The Fundamental Principles and Rights at Work 2004, Organizing for Social Justice, Geneva, Also available at: http://www.ilo.org/public/english/region/eurpro/moscow/news/2004/pressreleaseeng.pdf. KRISHNA, P., D., MITRA and S., CHINOY (2001), “TradeLliberalization and Labor Demand Elasticities: Evidence from Turkey”, Journal of International Economics 55, 391–409. KRUEGER, A. (2004), “Trade Liberalization and Economic Performance: An Overview, The Economic Journal, 114 (February), F4–F21. LIMAO, N. (2005), "Trade policy, cross-border externalities and lobbies: Do linked agreements enforce more cooperative outcomes?", Journal of International Economics, Elsevier, Vol. 67, No.1, 175-199. MASKUS, K. (1997) “Should Core Labor Standards Be Imposed through International Trade Policy?”, The World Economy 20, No. 6, September. Also available in: http://www.worldbank.org/research/trade/wp1817.html MATUSZ, S., and D. TARR (2000), “Adjusting to Trade Liberalization,” (in Anne O.Krueger -Ed.), Economic Policy Reform: The Second Stage, Chicago: The University of Chicago Press. MILANOVIC, B., and L. SQUIRE (2005), “Does Trade Liberalization Increase Wage Inequality? Some Empirical Evidence”, NBER Working Paper No. 11046. OECD - Organization for Economic Cooperation and Development (2000), International Trade and Core Labor Standards, OECD Publications, Paris.
  • OECD - Organization for Economic Cooperation and Development – (1996), Trade, Employment and Labor Standards: A Study of Core Workers‟ Rights and International Trade, Paris. POLASKI, S. (2003), “Trade and Labor Standards: A Strategy for Developing Countries”, Trade Equity and Development Project 2003, Carnegie En-dowment for International Peace. Also available at: http://www.carnegieendowment.org/pdf/files/Polaski_Trade_English.pdf RODRIK, D. (1996), “Labor Standards in International Trade: Do They Matter and What Do We Do About Them?” In Robert Lawrence, Dani Rodrik, and John Whalley (eds.), Emerging Agenda for Global Trade: High Stakes for Developing Countries. Washington, D.C.: Overseas Development Council. SRINIVASAN, T. N. (1995) “International Trade and Labor Standards”, (in Pitou van Dijck and Gerrit Faber-Ed.., Challenges to the New World Trade Organization), Amsterdam: Martinus Nijhoff/Kluwer, 1-43. STERN, R. M. (2003), “Labor Standards and Trade Agreements” University of Michigan, Discussion Paper No. 496, 1-24. ZADEK, S. and A. MC GILLIVRAY (2008), “Responsible competitiveness: making sustainability count in global markets”, Harvard International Review, Harvard International Relations Council, Inc., Vol.30, No.2, 72-78.
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Details

Primary Language English
Journal Section Articles
Authors

Y. Pınar I Soykut Sarıca This is me

Aslı Şen Taşbaşı This is me

Publication Date May 13, 2015
Published in Issue Year 2011 Issue: 6

Cite

APA Soykut Sarıca, Y. P. I., & Şen Taşbaşı, A. (2015). DO INTERNATIONAL TRADE AND LABOR STANDARDS AMELIORATE SYNCHRONOUSLY? ESTIMATION OF LABOR DEMAND ELASTICITY IN TURKEY1. Uluslararası İktisadi Ve İdari İncelemeler Dergisi(6). https://doi.org/10.18092/ijeas.29344

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