Labour Market Effects of Non-tariff Measures: A Computable General Equilibrium for the Food Processing Sector in Malaysia

Yew, Vickie Siew Hoon and Al-Amin, Abul Quasem and Devadason, Evelyn Shyamala (2020) Labour Market Effects of Non-tariff Measures: A Computable General Equilibrium for the Food Processing Sector in Malaysia. The Indian Journal of Labour Economics, 63 (3). pp. 629-656. ISSN 0971-7927, DOI https://doi.org/10.1007/s41027-020-00239-0.

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Official URL: https://doi.org/10.1007/s41027-020-00239-0

Abstract

Non-tariff measures (NTMs) affect the labour market indirectly through trade. However, much ambiguity surrounds the labour market effects of NTMs, as conditions of the labour market are somewhat contextual. With a specific focus on the highly regulated food processing sector in Malaysia, this paper examines the impact of reductions in ad valorem equivalents of NTMs on employment and wages using a computable general equilibrium model. The simulations indicate positive gains to employment following reductions in NTMs in the short and long run. In the long run, employment gains and wage losses are observed for the unskilled group. The findings justify the need to complement the NTM reform with other mechanisms to address the likely rise in low-quality jobs in the food processing sector. © 2020, Indian Society of Labour Economics.

Item Type: Article
Funders: UNSPECIFIED
Uncontrolled Keywords: Computable general equilibrium; Employment; Malaysia; Non-tariff measures; Wages
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 18 Feb 2021 06:35
Last Modified: 18 Feb 2021 06:35
URI: http://eprints.um.edu.my/id/eprint/25759

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