| Abstract: | This paper examines the impact of US market access on local labour markets in a developing country, Vietnam. Following the implementation of the Vietnam–United States bilateral trade agreement (BTA) in December 2001, manufacturing employment increased in provinces that were more exposed to US tariff cuts. In those provinces, employment also increased in many service sectors, reflecting strong spillovers of job gains. Among three potential channels of local job gain spillovers, namely, demand, production and real estate, the demand channel is the most important. The BTA is also found to reduce employment gaps, especially in manufacturing, between females and males, rural and urban, and poor and rich households. |
