Globalization and Working Environment Nexus: Evidence From Pakistan

Chen, Zhihong; Ul-Haq, Jabbar; Visas, Hubert; Cheema, Ahmed Raza

doi:10.1177/2158244019852474

Cited by 6 publications

(4 citation statements)

References 22 publications

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“…According to a survey of investment climates, Pakistan ranks 91 st place in the World for ease of hiring and firing and 126 th for worker's firing cost. The sample period of this study consists of data from 1990-2005, and there has been no change in the situations of the labor market (i.e., no new law was executed) during the study period (Chen et al, 2019;Wu et al, 2019).…”

Section: Labor Market In Pakistanmentioning

confidence: 99%

“…Moreover, as there were no crucial amendments made to the labor market during this sample period, the study captures the true impact of the trade regime on FLFP. This study therefore contributes to the existing literature by providing a more comprehensive analysis of the of the impact of TL on FLFP in the manufacturing sector of Pakistan (Chen, Ul-Haq, Visas, & Cheema, 2019;Wu et al, 2019).…”

Section: Introductionmentioning

confidence: 97%

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Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

Ul-Haq

Arif

Hye³

et al. 2023

Nurture

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Purpose: This study examines the impact of trade liberalization (TL) on female labor force participation (FLFP) during the trade regime period in Pakistan, using sectoral panel data of the manufacturing sector for the period of 1990-2005. Design/Methodology/Approach: We employed panel fixed effects (FEM) and Instrumental-variable (IV) regression models for empirical analysis. Findings: Our study reveals that trade liberalization and FLFP are associated. Trade liberalization increases FLFP in the manufacturing sector. The results of both measures of FLFP (i.e., the share of female employment, and female-to-male ratio) verify each other findings. Our findings are robust to the inclusion of various control variables. Furthermore, our IV analysis also confirms that liberalization has given rise to female employment in the manufacturing sector. Our policy implication is that the government should liberalize trade sectors that can help to enhance FLFP. Originality/Value: This study adds to the existing literature by exploring the association between TL and FLFP in the manufacturing sector of Pakistan by utilizing a better proxy of reductions in import tariffs for TL. The reduction of import tariffs is a policy-based measure that captures the pure impacts of trade policy as compared to outcome-based measures (i.e., trade ratios). We also consider the whole trade regime as a sample period (i.e., from 1990-2005) to examine the core impacts of the trade regime, as import tariffs drastically reduced during this period. Furthermore, we use two measures of FLFP for the analysis, i.e., the share of female employment, and the female-to-male ratio. Lastly, our use of sectoral panel data strengthens the empirical analysis.

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Section: Labor Market In Pakistanmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

Ul-Haq

Arif

Hye³

et al. 2023

Nurture

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show abstract

“…Rules regarding the labor market play a significant role in wage determination. Pakistan is an exclusive case study for examining the effect of FDI on wages since no new labor market regulations were enforced during this period or even previously (Chen et al, 2019;Wu et al, 2019). Since there are ambiguous results in the current literature on this relationship, it is believe that the minimal role of regulation that can influence the labor market during the study period will give us the core effect of foreign investment on wages.…”

Section: Introductionmentioning

confidence: 99%

FDI and Wage Nexus: Evidence from the Manufacturing Sector of Pakistan

Nisa

Haq

Nazeer

2022

GSSR

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Foreign capital inflows resulted in overall economic growth in many countries, but there are many concerns about its distributive effects,especially on fluctuating wages, which are still being investigated. The aim of this research is to investigate the impact of foreign direct investment on domestic industry wages using micro-level data from Pakistan from 1996-97 to 2007-08. Foreign firms are expected to pay higher wages than that domestic firms in order to attract more labor; thus, if foreign and domestic firms compete in the same labor market, domestic firms would pay higher wages to recruit jobs, resulting in rising average domestic industry wages. The empirical analysis also shows that in Pakistan, FDI inflows raise industry wage premiums.The findings of the study are robust by the inclusion of various globalization and sector-related variables. To reap higher wages, Pakistan's government should promote FDI at the industry level.

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“…The effect of the MFA/ATC on the wages of the lowskilled/educated workers in the textile and clothing sector of Pakistan is still overlooked. Chen et al (2019) studied the impact of MFA/ATC on working conditions using labor force survey data in case of Pakistan. Liaqat (2013aLiaqat ( , 2013b investigated the impact of MFA on firm's productivity using Karachi stock-listed firms data in case of Pakistan.…”

Section: Introductionmentioning

confidence: 99%

Female Earnings in the Apparel Industry Post-MFA: Evidence From Pakistan

et al. 2020

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One of the major worries vis-à-vis the phasing out of the multifiber arrangements (MFA)/agreement on textile and clothing (ATC) in 2005 was that the textile and apparel (T&A) production would shift from the developed to the developing countries and have significant impacts on particularly the female workers, as apparel is a female intensive sector in the world. We explore the effect of MFA/ATC on female laborer by examining the predictions of the theoretical model of Robertson and Trigueros-Argüello in the case of Pakistan. It predicts, based on the assumption that the T&A sector is female intensive, such that an adverse (beneficial) shock to product price will be transformed into a comparative decline (rise) in the T&A wages relative to other sectors in the short run (SR) and a relative drop in wages of female workers compared with wages of male workers across all sectors in the long-run (LR). Our empirical findings of the post-MFA/ATC variations support the predictions of the theoretical model.

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Globalization and Working Environment Nexus: Evidence From Pakistan

Cited by 6 publications

References 22 publications

Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

Unleashing the potential: Exploring the relationship between trade liberalization and female labor force participation in Pakistan

FDI and Wage Nexus: Evidence from the Manufacturing Sector of Pakistan

Female Earnings in the Apparel Industry Post-MFA: Evidence From Pakistan

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