International Economics Seminar: The Long-Term Employment Effects of Tariff Reductions in Developing Countries with Nina Pavcnik, Dartmouth
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At the next International Economics Seminar, Nina Pavcnik, Professor of Economics at Dartmouth University, presented her latest research examining the long-term employment effects of tariff reductions in developing countries. The study, co-authored with Brian McCaig and Woan Foong Wong, analyzes the impact of the 2001 US-Vietnam Bilateral Trade Agreement, which significantly reduced export tariffs on Vietnamese goods to the United States from 32% to just 3%. This policy shift was followed by a substantial surge in Vietnamese exports.
The researchers found that sectors most exposed to these tariff reductions experienced notably faster employment growth. A key driver of this expansion was the increased entry of multinational enterprises into Vietnam, particularly from East Asia. The findings highlight that increased exports driven by trade liberalization can yield substantial employment gains in developing economies, with positive spillover effects across the broader region.
