(DP 1985-11) Import Liberalization and Industrial Lay-Offs

Abstract

This paper tests the responsiveness of industrial lay-offs to import liberalization using the 1981-1983 trade liberalization as data period of analysis. Contrary to wide expectations industrial lay-offs of both import substituting and export-oriented industries behave in opposite directions with respect to the variations in imports i.e. the former decrease (instead of increase) their lay-offs while the latter increase (instead of decrease) their lay-offs. Some explanation is given to the contrary findings.