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North-South Trade, Employment and InequalityChanging Fortunes in a Skill-Driven World$
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Adrian Wood

Print publication date: 1995

Print ISBN-13: 9780198290155

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0198290152.001.0001

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Trade Shifts and Sectoral Side‐Effects

Trade Shifts and Sectoral Side‐Effects

Chapter:
(p.171) 5 Trade Shifts and Sectoral Side‐Effects
Source:
North-South Trade, Employment and Inequality
Author(s):

Adrian Wood (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/0198290152.003.0005

The main cause of the recent changes in the pattern of North–South trade seems to have been reductions in protection and in natural barriers to trade, making it possible to argue that these changes were an exogenous cause of shifts in the skill structure of the demand for labour in both country groups. These changes also raised the demand for labour in manufacturing in the South, and reduced it in the North, causing alterations in manufacturing's share of total employment. More than 20 million extra jobs in manufacturing were created in a few Southern countries. In the North, the immediate effect was to reduce the profitability of manufacturing, and subsequently to reduce the share of manufacturing in employment by around four percentage points—and by more in countries, which experienced greater increases in Southern import penetration.

Keywords:   demand, employment, labour, manufacturing, protection, skill, trade

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