How Trade Liberalization and Labor Development Could Coincide in the Philippines

• Main Authors: Hernandez, Aeneas DR, Miranda, Brendan Emmanuel A., Regulano, Martin William P, Tecson, Andrae Jamal, Oplas, Ma. Ella, Tullao, Tereso S., Jr, Villamil, Winfred M.
• Format: text
• Published: Animo Repository 2023
• Subjects: Trade; Globalization; Imports and Exports; Tariffs; Antitrust and Trade Regulation; International Business; International Trade Law
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/183; https://animorepository.dlsu.edu.ph/context/res_aki/article/1182/viewcontent/DLSU_AKI_Policy_Brief__2023_12_017.pdf
• Institution: De La Salle University

As the world adapts to the rapid pace of globalization in the 21st century, countries ease trade restrictions by gradually removing tariffs and non-tariff barriers to incentivize the free flow of goods across nations. This prevalence of trade liberalization policies propelled policymakers and economists to investigate the relationship between trade reforms and economic outcomes including wage inequality around the world. They found that trade liberalization, on average, has had a positive impact on economic growth, but prior studies that examine the effects of trade liberalization on wage inequality in developing countries have found mixed results. Recently, Murakami (2021) examined the impact of trade liberalization on wage inequality in Chile through the reduction in effective tariffs brought about by the regional trade agreements of the country. Following his empirical strategy, we examine the impact of trade liberalization on wage inequality in the Philippines. In this policy brief, we provide insights on our findings and policy recommendations that the Philippines can undertake