Trade Reform and Inequality: The Case of Mexico and Argentina in the 1990s

This paper provides empirical assessments of one of the leading explanations for the increase in skill premium in Mexico and Argentina during the 1990s: trade liberalisation. We present evidence showing that imports increase skill premium in Mexico, while exports reduce it. In Argentina, trade incre...

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Bibliographic Details
Published inWorld economy Vol. 31; no. 6; pp. 763 - 780
Main Authors Acosta, Pablo, Montes-Rojas, Gabriel V.
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.06.2008
Subjects
Argentina
Export-import trade
Exports and Imports
Foreign trade
Free Trade
Free trade and protection
Inequality
Integration
International economic relations
International trade
Latin America
Mexico
Policy Reform
Political reform
Recent economic history
Skilled labor
Studies
Trade liberalization
Trade Policy
Treaties
Work Skills
Mexico
Argentina
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Summary:This paper provides empirical assessments of one of the leading explanations for the increase in skill premium in Mexico and Argentina during the 1990s: trade liberalisation. We present evidence showing that imports increase skill premium in Mexico, while exports reduce it. In Argentina, trade increased skill premium in the early 1990s (the beginning of trade reforms), although it reduced it later in the decade. These results are helpful for a comparison between South–South integration, FTAA or bilateral FTAs with Northern economies as alternative trade policy options for Latin American countries.
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ArticleID:TWEC1100
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ISSN:0378-5920
1467-9701
DOI:10.1111/j.1467-9701.2008.01100.x