Trade Adjustment in Asia: Past Experiences and Lessons Learned
Asia’s economic success over the past four decades has been built on a strategy of export promotion coupled with trade opening.
Poverty rates throughout Asia have fallen dramatically, especially in countries that have succeeded in integrating into regional or global value chains. However, this economic success has been accompanied by structural changes, such as the need for workers to change roles, sectors, and sometimes regions. Faced with increased foreign competition, firms have been forced to reorganize and quickly adopt new technologies.
Despite the importance of this adjustment process, relatively little empirical evidence exists. This volume aims to close this gap by providing new insights into how Asia’s labor markets and firms have adjusted to trade opening. Written by leading trade economists with expertise in the region, the publication shows that trade opening has led to a more efficient allocation of capital and labor, but this has been accompanied by significant adjustment costs. The book sheds light on the effects of trade on workers and firms, with the aim of improving understanding of the adjustment process and contributing to the debate on how to make globalization work for all.
- Introduction by Marc Bacchetta and Matthias Helble
- Part I: Overview: Trade Adjustment in Asia
- 1. Responses to Trade Opening: Evidence and Lessons from Asia by Devashish Mitra
- Part II: Labor Market Adjustments in Asia
- 2. Industry Wages and Tariffs of the Rest of the World by Marcelo Olarreaga, Roberta Piermartini, and Guido Porto
- 3. Trade Liberalization and the Hukou System of the People’s Republic of China: How Migration Frictions Can Amplify the Unequal Gains from Trade by Yuan Zi
- 4. The Impact of Tariff Liberalization on the Labor Share in India’s Manufacturing Industry by Prachi Gupta and Matthias Helble
- 5. Export Boom, Employment Bust? The Paradox of Indonesia’s Displaced Workers, 2000–2014 by Rashesh Shrestha and Ian Coxhead
- Part III: Firm-level Adjustments in Asia
- 6. Firm Adjustment to Trade Policy Changes in East Asia by Dionisius Narjoko and Shujiro Urata
- 7. The Rise of the People’s Republic of China and Its Competition Effects on Innovation in Japan by Nobuaki Yamashita and Isamu Yamauchi
- 8. Trade Reform, Managers, and Skill Intensity: Evidence from India by Pavel Chakraborty
- 9. Multiproduct Firms, Tariff Liberalization, and Product Churning in Vietnamese Manufacturing by Ha Thi Thanh Doan