Trade, Technology and the Labour Market: The Case of South Africa

23 Pages Posted: 27 Oct 2012

See all articles by Johannes W. Fedderke

Johannes W. Fedderke

Pennsylvania State University - School of International Affairs

Yongcheol Shin

Independent

Prabhat Vaze

affiliation not provided to SSRN

Date Written: December 2012

Abstract

This study advances previous work on the effects of trade and technological change on labour markets within the framework of Heckscher–Ohlin trade theory. We provide evidence for an unskilled labour abundant developing country by employing dynamic heterogeneous panel estimation techniques. For South African manufacturing, trade‐mandated increases in earnings are positive for labour and negative for capital whilst technology‐mandated increases are negative for both factors. We also find it important to take account of endogeneity issues in analysing the impact of technology and price changes on factor returns and in isolating factor‐ and sector‐bias of technological changes.

JEL Classification: C23, C33, F16

Suggested Citation

Fedderke, Johannes W. and Shin, Yongcheol and Vaze, Prabhat, Trade, Technology and the Labour Market: The Case of South Africa (December 2012). Oxford Bulletin of Economics and Statistics, Vol. 74, Issue 6, pp. 808-830, 2012. Available at SSRN: https://ssrn.com/abstract=2167583 or http://dx.doi.org/10.1111/j.1468-0084.2011.00685.x

Johannes W. Fedderke (Contact Author)

Pennsylvania State University - School of International Affairs ( email )

Lewis Katz Building
University Park, PA 16802
United States

HOME PAGE: http://sia.psu.edu/faculty/johannes_fedderke

Yongcheol Shin

Independent

No Address Available

Prabhat Vaze

affiliation not provided to SSRN ( email )

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