Working Papers

The Impact of Trade Openness on Employment and Wages in Egypt’s Manufacturing Sector

Publication Number: ECES WP 176-E

April, 2014

Author : Tarek El-Ghamrawy

Type : Working Papers

Developing countries have been going for several decades through a gradual process of trade liberalization. Though the debate over the impact of trade on absolute growth remains open, it is important nowadays to question the effect of trade liberalization on employment and wages. This paper studies the effect of exports and imports on these two variables, focusing on the manufacturing sector, and drawing a distinction between the public and private sectors, and between technology intensive and non-technology intensive industries. The main findings of the paper show that exports increase employment in both the public and the private sectors with no effect on average wages. Imports, in turn, are insignificant. Yet, when we disaggregate the sample, results differ between technology intensive and low technology, between private and public and between employment and average wages.