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International Trade and Employment in Labour-Intensive Sectors in Iran

By Zahra Karimi | November 20, 2007

ABSTRACT: Most developing countries try to “reduce production costs” to be able to increase their exports to the competitive international markets. The process of economic globalization has winners and losers. Surging international trade has lowered the share of Iran's labour-intensive exports, especially Persian Carpets, in international markets; as the production costs of its rival countries are lower.

The results of the survey which was conducted about carpet-weavers in Kashan show that harsh international competition in conquering hand-woven carpet markets has reduced real wages of carpet-weavers and has restructured the labour force of the industry in Iran. The middle income families, who were involved in carpet-weaving for long time, have left the industry and Afghan immigrant workers increasingly substitute Iranian weavers. Iran's share in international hand-woven carpet markets would be lower, if low-paid women Afghan workers were not concentrated in Iran hand-woven carpet industry.

Download: International Trade and Employment in Labour-Intensive Sectors in Iran (PDF, 124.46 K)

Read More: Development, Economy, Human Rights, Trade, Iran, Middle East

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