ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Is Import Liberalisation Hurting Domestic Industry and Employment?

Theory says that freer trade encourages economic activity and hence raises production and employment. Is this true in the Indian case? This article examines statistical evidence to answer this question. It finds that since liberalisation, trade has shrunk India's manufacturing base both in terms of value addition and employment. The intermediate and capital goods industries have suffered more. Manufacturing is also shifting from high-skilled and capital intensive production to low-skilled and labour intensive production. Existing wage disparity between skilled and unskilled workers has worsened.

East European Developments-Impact on Trade of Developing Countries

East European Developments Impact on Trade of Developing Countries R G Nambiar Rajesh Mehta G A Tadas This article makes an attempt to evaluate the potential impact of East's entry into the 'global economic zoo' on developing countries particularly from the standpoint of latter's trade opportunities in the nineties. The East's entry into the world's free markets' appears to have ruinous ramifications for developing countries' trade. There are two circumstances which reinforce this conclusion. The first is the findings of the 1980s which show a firm trend of trade diversion that has already begun to flush out the developing countries not only from the markets of North, but also from its own markets. The second circumstance is the apparent tendency for the structure of intra-East Europe trade to be very similar to the export structures of the developing countries.
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