OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Mastering the transition: A synthetic literature review of trade adaptation policies

International trade has supported economic convergence and poverty reductions in many emerging market economies. Nonetheless, there are significant challenges during the transition towards a more open economy. Reallocations of resources and structural change are one key source of aggregate productivity improvements, but they will come with adjustment costs. Less competitive firms and sectors may decline, while more competitive sectors will have to adapt and seize new opportunities from trade and global value chains. Some workers will move to more productive firms, change occupations, sectors or even location. Non-trade policies can help to smooth these challenges and support workers seize new opportunities. This paper reviews the existing literature on how policy reforms have managed to support structural change of economies.


Keywords: skills, professional training, trade adjustment policies, international trade
JEL: F66: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Labor; F68: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Policy; F16: International Economics / Trade / Trade and Labor Market Interactions; I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy
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