A CGE analysis of the impact of Foreign Direct Investment and tariff reform on female and male workers in Tanzania

Abstract

This study analyzes the impact on female and male workers of tariff reform and the reduction of regulatory barriers faced by domestic and foreign firms operating in business services. It develops a data set that distinguishes labor by gender for 52 sectors and four skill categories. The model is the first to incorporate modern trade theory to assess its gender implications. The Dixit–Stiglitz framework results in productivity gains, which increase remunerations across all worker categories. However, this is less beneficial for women because the less skilled workers and the ones that are less involved in business services gain less.