Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia, ISBN: 978-1-922069-64-1
Tunisian Labor Market Responses to Trade Liberalization: A
Dynamic Analysis
Charfeddine Lanouar*, Zouhair Mrabet** and Frederic Teulon***
There are increasing studies that address the skill upgrading in developing
countries. The theoretical analyses yield different results about which
factors affect skill upgrading. The impact of trade openness and technology
transfer on the relative demand for skilled labor remains a puzzle, the issue
is mainly empirical questions. The empirical findings surrounding this
question are in total contradiction with the prediction of traditional
international trade theory. This paper addresses this puzzle by investigating
the Tunisian economy. For this purpose, a database covering 12 Tunisian
sectors from the period of 1983-2010, was constructed and a dynamic
panel data method was employed.
Empirical results indicate that trade openness positively affects skilled labor
employment levels. Empirical results also show that the effects of changes
in technology are ambiguous; on the one hand, advances in technology
have positive effects mediated via export channels, but on the other hand,
advances can have a negative effect mediated via imports. These empirical
findings have important economic implications; for instance Tunisian
economic policy should be oriented to improve a firm's competitiveness and
labor market capacity to minimize the cost of trade liberalization in terms of
employment losses.
Keywords: Wages inequalities, technology change, skill upgrading, dynamic panel data
model.
JEL Codes: F16, J23, J24, O33, C2.
*
Dr. Charfeddine Lanouar Assistant Professor of Economics, Department of Finance and Economics,
College of Business and Economics, Qatar University. P.O.Box: 2713-Doha-Qatar, Email:
lcharfeddine@qu.edu.qa. Office: (+974) 4403-7763, Fax : (+974) 4403-5081.
**
Dr. Zouhair Mrabet Assistant Professor of Economics, Department of Finance and Economics, College of
Business and Economics, Qatar University P.O.Box: 2713-Doha-Qatar, Email: zouhair.mrabet@qu.edu.qa.
(+974) 4403-6495, Fax: (+974) 4403-5081.
***
Dr. Frederic Teulon Professor of Economics & Dean of the faculty, Department of Finance and Economics,
Ipag Business School, Paris, France. Email: frederic.teulon@dbmail.com.