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Trade Liberalization And Employment Performance Of Textile And Clothing Industry In Tanzania  


Abstract Category: Accounts and Economics
Course / Degree: Msc. International Trade Policy and Trade Laws
Institution / University: Lund Universitet, Sweden
Published in: 2011


Dissertation Abstract / Summary:

The objective of this study is to investigate the effect of trade liberalization on employment performance of textile and clothing industry in Tanzania. The basic issues of concern are that the implementation of trade liberalization has impact on employment of textile industry in Tanzania; and a reduction in the effective rate of protection and trade reforms are associated with a reduction in employment and wages. In achieving this objective as well as addressing these issues, econometric models of employment and wages are estimated using co integration method of analysis. The descriptive analysis results show that, there has been improvement in employment during post reforms period. The result of the econometric investigation also supports this finding. The analysis shows that export intensity and import penetration affect demand of labour in Textile and clothing industry.

The impact of import penetration is stronger than that of export orientation, as the increase in import competition leads to decline in labour demand. Nevertheless, the empirical analysis shows that increase in output stimulates the increase in labour demand as firms employ more to meet their production requirements. However findings on wages are not satisfactory, as there has been very little improvement. Both descriptive and econometric analyses reveal that there has been a very low increase of wages during post trade reforms. The results of various analyses have implications for government regulations and policy reforms in Tanzania. The process of trade reforms should be more gradual and needs to be strengthened. Appropriate institutional framework and good governance system are equally important. There is the need for policies to attract more investors to manufacturing sector, stimulating and promoting labour market programmes, adopting and maintaining selective protection within the WTO Agreements. There is also the need to update industrial and trade policies to complement the multinational policy.


Dissertation Keywords/Search Tags:
Employment, Trade Liberalization, Adjustment costs, Manufacturing, Wage

This Dissertation Abstract may be cited as follows:
Johansein Rutaihw, (2009), TRADE LIBERALIZATION AND EMPLOYMENT PERFORMANCE OF TEXTILE AND CLOTHING INDUSTRY IN TANZANIA


Submission Details: Dissertation Abstract submitted by Johansein Rutaihwa from Tanzania on 07-Nov-2011 15:02.
Abstract has been viewed 2969 times (since 7 Mar 2010).

Johansein Rutaihwa Contact Details: Email: johansein@gmail.com Phone: +255754545718



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