Belgium central bank paper reviews effects of trade liberalisation in low-wage countries

bank-of-belgium

A National Bank of Belgium paper shows that trade liberalisation with low-wage countries leads to less reallocation from low-skill-intensity industries to high-skill-intensity industries.

Catherine Fuss and Linke Zhu, the paper's authors, use Belgian manufacturing firm- and firm-product-level data from 1997 to 2007 to determine the effect of trade liberalisation on resource reallocation. The authors first provide evidence on industry integration induced by multi-product firms producing

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