Trade and Poverty Project

Posted by Alison Siljeur | 9 Feb, 2006
Trade and Poverty in South Africa: Exploring the trade-labour linkages

Extract: Changes in trade flows have been major factors in the structural changes taking place in the developing economies. Trade liberalisation results in a reallocation of resources, including labour and capital, across sectors of the economy. Further, liberalisation has dynamic effects, through its impact on productivity within industries, which again will differ across industries and impact upon employment, wages and the return on capital. Together these static and dynamic adjustments are likely to impact upon poverty at the household level.

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