Evidence on the Impact of Tariff Reductions on Employment in Developing Countries: A Systematic Review

Cirera, Xavier; Willenbockel, Dirk; Lakshman, Rajith W.D.

doi:10.1111/joes.12029

Cited by 22 publications

(21 citation statements)

References 30 publications

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“…Our results are consistent with this finding, in so far as trade liberalization increases the level of output. In their survey of the evidence on the empirical effects of tariff reductions on employment (in developing countries), Cirera et al (2013) found that, when openness indicators (a share of exports, imports or both, over GDP) are used as the trade policy proxy, more openness is associated with higher employment. Fig.…”

Section: Effects Of a Unilateral Tariff Reductionmentioning

confidence: 98%

Value of WTO trade agreements in a New Keynesian model

Ganelli¹,

Tervala

2015

Journal of Macroeconomics

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JEL classification: F13 F41 E60 Keywords: Tariffs Terms of trade theory Trade agreement Trade liberalization WTO a b s t r a c tWe revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incentive for a trade agreement. For realistic parameter values, the value of an agreement, which cuts tariffs by one percentage point, is 0.5-2% of consumption, much larger than in trade models. The intuition for this result hinges on endogenous labor supply.

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Section: Effects Of a Unilateral Tariff Reductionmentioning

confidence: 98%

Value of WTO trade agreements in a New Keynesian model

Ganelli¹,

Tervala

2015

Journal of Macroeconomics

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“…Studies that looked at impact of programmes that we did not consider a public intervention targeted exclusively to SMEs were dropped (Bah et al, 2011). Studies that looked at the impact of export zones, such as Cirera et al (2011) and Cirera et al (2013), were dropped. Finally, studies (RCTs) that did not clearly test a public policy and that was conducted with rural firms only such as Giné and Mansuri (2011) were not included in the review.…”

Section: Excluded Studiesmentioning

confidence: 99%

Business support for small and medium enterprises in low- and middle-income countries

Piza¹,

Cravo²,

Taylor³

et al. 2016

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The International Initiative for Impact Evaluation (3ie) is an international grant-making NGO promoting evidence-informed development policies and programmes. We are the global leader in funding, producing and synthesising high-quality evidence of what works, for whom, why and at what cost. We believe that better and policy-relevant evidence will make development more effective and improve people's lives. 3ie systematic reviews 3ie systematic reviews appraise and synthesise the available high-quality evidence on the effectiveness of social and economic development interventions in low-and middle-income countries. These reviews follow scientifically recognised review methods, and are peerreviewed and quality assured according to internationally accepted standards. 3ie is providing leadership in demonstrating rigorous and innovative review methodologies, such as using theory-based approaches suited to inform policy and programming in the dynamic contexts and challenges of low-and middle-income countries. About this reviewBusiness support for small and medium enterprises in low-and middle-income countries: a systematic review, was submitted in partial fulfilment of the requirements of grant SR5.1180 issued under Systematic Review Window 5. This review is available on the 3ie website. 3ie is publishing this report as received from the authors; it has been formatted to 3ie style. This review has also been published in the Campbell Collaboration Library and is available here.All content is the sole responsibility of the authors and does not represent the opinions of 3ie, its donors or its board of commissioners. Any errors are also the sole responsibility of the authors. Comments or queries should be directed to the corresponding author, Caio Piza, ctpiza@worldbank.org Plain language summaryMotivation: Large amounts of funding are going towards programmes to support small businesses (Small and Medium Enterprises, or SMEs) in low-and middle-income countries, based on the assumption that those businesses will make profits and generate employment, and thus create economic growth and reduce poverty. However, it is not clear how much evidence exists to show whether those results are occurring and for which groups. This is the first systematic review of the evidence regarding these programmes.Approach: The review looks at measures of SME performance including revenues, profits, and productivity, as well as the firms' ability to generate employment and their labour productivity. We conducted a systematic review of the available quantitative evidence, and also incorporated qualitative studies to better understand the mechanisms at work. We searched for published and unpublished literature, using inclusion criteria according to the study protocol. We critically appraised the studies included, and conducted statistical metaanalysis to gain an overview of the findings and meta-regression to understand heterogeneity.Results: Our study finds that business' support to SMEs improves their performance, their ability to create jobs, ...

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Section: Figure 1 Effects Of a Unilateral Domestic Tariff Reductionmentioning

confidence: 99%

Value of WTO Trade Agreements in a New Keynesian Model

Ganelli

Tervala²

2015

IMF Working Papers

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We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incentive for a trade agreement. For realistic parameter values, the value of an agreement, which cuts tariffs by one percentage point, is 0.5% to 2% of consumption, much larger than in trade models. The intuition for this result hinges on some New Keynesian features of our framework, such as imperfect competition and endogenous labor supply. JEL Classification Numbers:F13; F41; E60

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Evidence on the Impact of Tariff Reductions on Employment in Developing Countries: A Systematic Review

Cited by 22 publications

References 30 publications

Value of WTO trade agreements in a New Keynesian model

Value of WTO trade agreements in a New Keynesian model

Business support for small and medium enterprises in low- and middle-income countries

Value of WTO Trade Agreements in a New Keynesian Model

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