The employment effects of tradepolicy reform in Myanmar

Abstract

This paper investigates employment responses to trade liberalisation in a developing
economy, Myanmar. Using data from the 2014 Census and the 2017, labour force survey
and previous surveys contained in Myanmar Statistical Yearbook, 2017, we find that
trade liberalization did not affect the relative size of industry sectors in terms of
employment. The OLS results finds support for the theoretical predictions of differential
responses to trade reforms between sectors. Conversely, while empirical support is found
for tariff reduction in influencing sector level employment, the tariff predictors are
weaker overall than the sector productivity and competitiveness (in export market)
predictors—implying that trade policy reforms need to be correctly tailored to raising
productivity of labour force and sector competitiveness if their impact on employment is
to be effectively realised.

IPRAA WORKING PAPER 126

JEL Code: E24, F13, F14

Keywords
: ASEAN, employment, international trade, trade policy, revealed
comparative advantage, Asia Pacific, Myanmar

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