While trade integration has been an engine of global growth and prosperity some sectors
have been negatively affected by increased imports competition, as expected in theory.
Higher labor mobility could lower these adjustment costs. This paper measures the cost of
trade integration in a context of high internal migration. Specifically, we focus on the 2004-
14 period of trade liberalization in Peru (a major beneficiary of trade integration). Despite
significant migration in response to lower tariffs, we find a significant negative relation
between tariff reduction and socioeconomic indicators of imports-competing districts. This
underscores the need for policy action to support the “losers from trade liberalization”.
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
Prices in red indicate formats that are not yet available but are forthcoming.