International Trade and Unemployment: Evidence From Selected ASEAN+3 Countries

Authors

Atif Awad, University of Sharjah, Sharjah, United Arab EmiratesFollow
Ishak Yussof, The National University of Malaysia, Malaysia

JEL Classification System

J64, F130, F66

Abstract

The present study seeks to examine empirically whether exposure to international trade creates or destroys jobs for a sample of eight ASEAN+3 countries (APT). The findings of the PMG technique shows that trade liberalization policies have a negative influence on unemployment rate in the long run. Since medium and unskilled workers are the majority of the workforce, a reduction in trade barriers is likely to expand the trading sector. For the APT countries to compete globally, the trading sector is likely to shift to a more efficient production mode by using intensive capital and high skilled labor, leaving unskilled workers unemployed. The findings are robust since we use various proxies for the trade liberalization policies.

Recommended Citation

Awad, Atif and Yussof, Ishak (2017) "International Trade and Unemployment: Evidence From Selected ASEAN+3 Countries," DLSU Business & Economics Review: Vol. 27: No. 1, Article 10.
DOI: https://doi.org/10.59588/2243-786X.1259
Available at: https://animorepository.dlsu.edu.ph/ber/vol27/iss1/10