THE URUGUAY ROUND AND THE DEVELOPING COUNTRIES: THAILAND AND THE PHILIPPINES

Studies on the economic impact of the Uruguay Round of the GATT have frequently suggested that all or almost all countries–developed and developing–will gain. In the present paper it is argued that the number of developing countries which lose from the Round may be much larger than is generally assumed. This issue is discussed in the context of Thailand and the Philippines, two countries generally considered to be so similar for trade analysis purposes that they are often grouped together as if their interests were the same. It is suggested here that Thailand is a net gainer from the Round and the Philippines a net loser.     

TECHNOLOGICAL CHANGE AND DEMAND FOR SKILLS IN DEVELOPING COUNTRIES: AN EMPIRICAL INVESTIGATION OF THE REPUBLIC OF KOREA'S CASE

There are few studies that directly address the upskilling issues in developing countries. Since theoretical analyses of these issues usually yield different results, upskilling in developing counties, and the factors of upskilling, if any, are rather empirical questions. This study shows that upskilling that occurs in developed countries in terms of the ratio of the number of white‐collar workers to that of blue‐collar workers also occurred in the Republic of Korea, one of developing countries. Increasing demand for highly‐skilled workers reflected in their employment and wage shares can be largely explained by “within industry’ shifts, not by “between industry” shifts, especially in the manufacturing industry. To further investigate the causes of these shifts, changes in white‐collar shares are regressed on the capital‐output and R&D‐sales ratio. Estimated coefficients are all positive, suggesting capital‐skill complementarities and skill‐biased technological change.