THE ASSESSMENT OF THE IMPACT OF INTERNATIONAL TRADE AND PROTECTION ON WAGES USING THAI MANUFACTURING SURVEYS

Abstract

    The study assessed the impact of international trade and protection on wages across Thai manufacturing industries for years 2000, 2001 and 2003. The authors adopted the literature regressions of this impact on the individual wages based on their characteristics across manufacturing industries. Following this line, the authors proposed estimation for manufactory average wages under control of heterogeneous manufactories by both manufactory and industry characteristics. The authors addressed differences in wages between trading and nontrading (imports or exports) manufactories. Imports and exports were measurements of international trade; tariffs and non-tariff barriers (NTBs) were protection indicators treated as endogenous. The results showed that workers in unprotected, exportable manufacturing industries were paid higher wages than workers in protected industries with similar observable manufactory and industry characteristics. In details, tariffs and NTBs were negatively significant effects on wages. These results are consistent with the previous literatures and of significance to Thai economy.