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This report quantifies labour mobility costs in developing countries and simulates the implied adjustment paths of employment and wages following a change in trade policy. High mobility costs are shown to reduce the potential gains to trade reform.
"Lederman, Maloney, and Serven offer an excellent empirical investigation into the impacts of the North America Free Trade Agreement (NAFTA) on the Mexican economy. . . . The authors pay close attention to the experiences of other Latin American countries and the European Union while avoiding ideological debates."--CHOICE"Lessons from NAFTA is important perhaps less for what it tells us about changes under a free-trade agreement and more for its nuanced and careful empirical investigation of how trade can actually make people better off. This, indeed, is the 'big story' of NAFTA and the potential for free trade agreements in the region."--Political Science Quarterly
This book explains why countries, especially developing countries, change their trade policies over the course of history. It does so through an interdisciplinary approach which borrows analyses from both political science and economics.
Does what economies export matter for development? If so, can industrial policies improve on the export basket generated by the market? This reviews relevant literature and takes stock of conceptual, empirical, and policy viewpoints, and assesses indicators that can guide public sector interventions.
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