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Does Trade Expansion Still Promote Employment in Korea?
Author(s) -
Nam ChongHyun
Publication year - 2008
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2008.01104.x
Subject(s) - economics , developing country , job creation , empirical research , period (music) , developed country , international economics , labour economics , economic growth , population , philosophy , physics , demography , epistemology , sociology , acoustics
According to the Heckscher–Ohlin–Samuelson (HOS) model, trade can be an important source of job gains for developing economies, but, conversely, result in job losses for developed economies. Empirical research to date, however, has provided mixed results regarding the direction and size of the employment effects for both developing and developed economies. This paper attempts to evaluate the employment implications of trade for Korea over the 1975–2000 period. Korea merits attention because it has successfully transformed itself from a developing to a semi‐developed economy during this period. Empirical results show that trade has indeed played an important role in enhancing job opportunities in Korea throughout this period, but its role as a job creator has diminished since 1985, suggesting that such a role could soon end, or even reverse.