Trade agreements and employment: Chile 1996-2003

Employment Working Paper No. 21

Estimates the impact on job creation of exports, during the period 1990-2005, to countries with which Chile has trade agreements. Distinguishes between direct employment effects, namely in the mainstream economic activity, and indirect employment effects, i.e. along the production chain involving specialized services, the wholesale and retail trade, and land transport sectors.

Introduction -- The case for government intervention -- The case against government intervention -- Instruments used to guide structural change -- Case studies -- Empirical studies on the effects of industrial policies -- Policy space: the role of WTO and IFIs -- The way forward -- Conclusion: implications for policymakers.