Index

Abreu, M.P., 104 Adam, C. and D. Bevan, 200 adjustment

equity issues, 70 political economy motives, 70-1 process of, 70-1

adjustment costs, 1, 3-4, 12, 52-3 and capital, 67 Chile, 222-3 definition of, 66-8 and developing countries, 71-3 fiscal and financial policy issues,

80-1 from trade agreements, Bangladesh,

97-9 measuring structural adjustment

costs, 74-6 nature of structural adjustment

costs, 73-4 private sector, 67 public sector, 67-8 and trade agreements, 73 trade induced, developing

countries, 75-6 and trade liberalization, 66-85:

policy implications, 76-81 Zambia, 198-9

adjustment problems, 16 adjustments, 15 ad valorem (or percentage) equivalent

(AVE),61 Africa, 60 African Caribbean and Pacific (ACP)

group of countries, 144 African Growth and Opportunity Act

(AGOA), 165, 170, 192,203,210 agriculture, 27-8

Bangladesh, 98 Bulgaria, 113, 115-16 Jamaica, 140, 147 Malawi,158 Philippines, 177, 178 Zambia, 188

Ahmed, S. and Z. Sattar, 96 'aid for trade', 16 Allen, D.W., 184 anti-dumping, India, 129 Anwar, S.F., 99 Argentina, 72, 110 Asia Pacific Economic Cooperation

(APEC),174 Association of South-East Asian

Nations (ASEAN), 128, 174 Austria, M., 179 autonomous liberalization, 30

Bacchetta, M. and M. Jansen, 73, 78, 80, 82

Baldwin, R., J. Mutti and J. David Richardson, 68, 74

Bale, M.D., 74 Bangkok Agreement, 128 Bangladesh, 4-5, 89-100

227

adjustment costs, 97-9 agriculture, 98 competitiveness, 95 democracy, 91 deregulation measures, 91 elimination of quantitative

restrictions, 93 emigration, 210 employment, 96 exchange rate management, 93-4 export facilitation measures, 94 exports, 89-90, 207 foreign trade, 89-90 GDP,89 Gini coefficient, 97 government revenue, 95-6 growth performance, 95 import policy, 91-2 import restrictions, reduction, 93 income inequality, 97 inflation, 95 openness of economy, 94 pharmaceutical industry, 99

228 Index

Bangladesh - continued population, 89 potential new export sectors, 99 poverty, 96-7 real effective exchange rate (REER),

95 reform, effects of, 206-07 reform and liberalization policies:

history, 90-1; initial phases of reforms, 91

regional cooperation, 94 structural adjustment policies

(SAPs),91 structural transformation, 89 tariff reform, 92-3 temporary movement of natural

persons supplying services, 98-9

textiles and clothing industry, 97-8, 210

trade liberalization, summary of process, 212-13

and TRIPS agreement, 99 Baunsgaard, T. and M. Keen, 81 Bhagwati, J., 83 Bhagwati, J. and T.N. Srinivasan, 73 BIMSTEC (Economic cooperation

between Bangladesh, India, Myanmar, Sri Lanka and Thailand), 94, 128

Blanchard, 0. and M. Kremer, 77 Bonelli, R., 107 Bonelli, R. and R. Fonseca, 110 Bouet, A. et al., 61 Bown, c.P. and R. McCullock, 71, 77 Brazil, 5-6, 101-11

common external tariff (CET), 103-04

direction of trade, 109 economic developments,

1980-2003, 102-03 economy, 101-03 employment, 107-08, 108-09 exchange rate, 102 exports, 101 GDp, 101, 208 Gini coefficient, 101 imports, 106-07 inflation, 102, 103

labour adjustment costs, 108 nominal import tariffs, 105 poverty reduction, 108 productivity growth, 107 public debt, 103 reform, effects of, 208-09 stabilization plan (1994), 102 tariff reductions, 103 trade liberalization, 103-06, 208:

economic impact, 106-09; summary of process, 212-13

unemployment, 107-08 unemployment insurance scheme,

109 Bulgaria, 6, 41, 112-23

agriculture, 113, 115-16 competitiveness, 122 currency board arrangement (CBA),

113 domestic supports, 121 economic growth, 206 employment, 112-13 EU accession, 112, 122 Europe Agreement, 119 exports, 115-16, 120-21, 206 free trade agreements, 117, 119 GDP, 112, 114-15, 116, 121 imports, 115, 120 most favoured nation (MNF) tariff

rates, 117, 119 National Economic Development

Plan (NEDP), 117 poverty, 116, 121 reform, 121-2: effects of, 206-07 restructuring of economy, 113 savings-investment gap, 113 service sector, 116 tariffs, bound and applied, 118 textiles and clothing, 206 trade, 114-16 trade liberalization, 116-21, 122 unemployment, 112-13, 121,207 workforce, 112 and WTO, 117, 120

capability to adjust, 26-7 capital

and adjustment costs, 67 in trade policy models, 38

capped formula, 27, 39, 40, 43, 44, 45, 52, 57---8, 60

Caribbean Basin Economic Recovery (CBI) Act, US, 147

CARICOM (Caribbean Community), 143, 144, 145, 151

Castilho, M., 109 Central European Free Trade Area

(CEITA), 115, 119, 207 Chakraborty, P., S.F. Anwar and

M.Ahmad,99 Chaturvedi, A. and V. Upadhyay, 130 Chile, 222

adjustment costs, 222-3 China, 2, 36, 42

exports, 39 Choksi, A., 12 civil society, and welfare, 70 Clarete, R., 171, 178, 182 Coase, R., 185, 186 Collier, P. andJ. Gunning, 79 common external tariff (CET), 103-04 Common Market for Eastern and

Southern Africa (COMESA), 165, 170, 192, 196

Commonwealth Secretariat, 192 comparative advantage, 16 complementary domestic measures,

77-8 contingent protection tools, 77 Convention on International Trade

in Endangered Species (CITES), 191

Cororaton, c., 171 Cotonou Agreement, 143, 166 Council for Mutual Economic

Assistance (CMEA), 115, 116 country case studies, 4-10

overall assessment, 11-13 credit markets, and services, 78-9 Criscuolo, C., J. Haskel and R. Martin,

78

Das, 0.,134 David, c., 174 Davidson, C. and S.J. Matsusz, 70 Davies, C., 150 De Melo, J. and D. Tarr, 74 Deolalikar, A.B., 130

Index 229

developing countries, 14-15,21,223--4 and adjustment costs, 71-3 firms in, 71-2 tariff changes, 32 trade induced structural adjustment

costs, 75-6 unskilled labour, 45, 47, 73

developing country tariffs, and LDC market access, 59-61

distributional effects, 69 Dollar, D., 12 domestic reforms, 10-11

and trade liberalization, 225-6

Ebrill, L., J. Strotsky and R. Gropp, 75, 80

ECLAC, 145, 151 Economic and Social Survey of Jamaica,

150 Ecuador Central Bank, 76 El Nino, 182 emigration, 210 employment

Bangladesh, 96 Brazil, 107-08, 108-09 Bulgaria, 112-13 India, 130, 133 Jamaica, 152 Philippines, 172, 180, 182 Zambia, 198

entrepreneurship, 221 erosion of preferences, 53 Europe Agreement, Bulgaria, 119 European Free Trade Area (EFTA), 61,

115,207 European Union, 105, 196

accession of Bulgaria, 112, 113, 122 imports from LDCs, 62, 63

Everything-but-Arms (EBA) initiative, 165

exchange rate management, Bangladesh, 93--4

exchange rates, trade policy models, 38 export revenues, in trade policy

models, 39--41 exports

Bangladesh, 89-90, 94, 207 Brazil, 101 Bulgaria, 115-16, 120-1,206

230 Index

exports - continued changes in revenue under

alternative scenarios, 40 India, 39, 41, 125-6, 127 Jamaica, 142, 143, 146-7, ISS Malawi, 159, 162, 165-6, 166-7 Philippines, 173, 179, 185,207 Zambia, 192

Facchini, G. and G. Willman, 82 Fernandez, R. and D. Rodrik, 69 Fernandez de Cordoba, S. et aI., 37, 53 Fernandez de Cordoba, S., S. Laird and

D. Vanzetti, 218 Fink, C., A. Mattoo and I.e. Neagu, 79 firms, in developing countries, 71-2 Francois, J., 53 Francois, J., H. van Meijl and F. van

Tongeren,61 Francois, J. and W. Martin, 224 free trade, 2 free trade agreements (FTAs), 203

Bulgaria, 117 Free Trade Area of the Americas

(FTAA), 105, 109, 143

GDP Bangladesh, 89 Brazil, 101, 208 Bulgaria, 112, 114-15, 116, 121 India, 129-30, 131 Jamaica, 140, 141, 142, 148, 149 Malawi, 158, 159, 166 Philippines, 172 Zambia, 188, 193, 199

General Agreement on Services (GATS),98

General Agreement on Trade and Tariffs (GATT), 14, 129,219

Generalized System of Preferences (GSP),119

Ghose, A.K., 75 Gini coefficient

Bangladesh,97 Brazil, 101

'Girard formula', 27 globalization, 73, 177 Global Trade Analysis Project (GTAP),

35,135

Government of Bangladesh, 92, 97 Government of India, 131 government revenues, trade policy

models, 42 GRZ, 189, 194

Habito, e. and e. Cororaton, 171, 178, 179

Habito, e. et ai., 183 Hamermesh, D.S. and G.A. Pfann, 70 Harrison, A. and A. Revegna, 70, 75,

76,80 Harrison, G. et ai., 108 Herin, J., 61 Hertel, T.W. et aI., 108 Hoekman, B. and B. Smarzynska-

Javorcik, 69, 77, 78, 170 Hong Kong, 222 horizontal infrastructure services, 79 Human Development Index (HDI),

101 human welfare, Zambia, 209-10

import competition, 77 imports, 203

Bangladesh, 91-2, 93 Brazil, 106-07 Bulgaria, 115, 120 changes relative to base under

alternative scenarios, 43 from LDCs to EU-15, 62 Jamaica, 142, 144-6, ISS Malawi, 159, 163-5, 167 Philippines, 173, 179,207 quantitative restrictions (QAs), 203 trade policy models, 42 Zambia, 189, 191-2

Independent Management Consulting Services (IMCS), 192

India, 6-7, 12, 124-39 anti-dumping, 129 balance of payments, 132-3 economic growth, 209 economic reforms, 124-9, 136-7 employment, 130, 133 exchange rate policy, 125 export and import policy, 125-6 exports, 39, 41: policy measures to

encourage, 127

FDI policy, 125 Foreign Exchange Management Act

(FEMA), 125 Foreign Exchange Regulation Act

(FERA),125 foreign trade, 132 GDP, 129-30, 131 industrial policy, 125 investment and saving, 130-2 medium-term export strategy,

2002-2007, 127-8 national Rural Employment

Guarantee Act, 137 negotiations on non-agricultural

market access (NAMA), 134-6, 137

per capita income, 130 population, 124 poverty, 130, 133-4 reform, effects of, 208-09 and regional trade agreements, 128 standard of living, 130 tariff barriers, 125 tariff policy, 126-7 tariffs, 129, 135 trade liberalization, 208:

development impact, 129-34; and industrial growth, 131-2; summary of process, 214-15

trade policy, 125-6 unemployment, 209 United Nations Millennium

Development goals, 133-4 wages, 137

Indian Ocean Rim Agreement for Regional Cooperation (lOR-ARC), 128

inflation Bangladesh, 95 Brazil, 102, 103 Malawi, 158-9, 160

Intal, P., 179 intellectual property rights, 78 Inter-American Development Bank

(IDB), 143, 149 international financial institutions, 16 International Monetary Fund (IMF),

116, 143, 144, 189,205 Islam, M.A., 95

Jamaica, 7-8, 140-57 agriculture, 140, 147

Index 231

average import tariffs, 145-6 competitiveness, 154-5 crime, 149 and the Doha development round,

155-6 economic growth, 141 education, 140, 154 emigration, 210 employment, 152 exchange rate, 149 exports, 142, 143, 146-7, 155 FDI,149 financial liberalization, 147, 148,

149 GDP, 140, 141, 142, 148, 149 General Consumption Tax, 151 government loans, 142-3 imports, 142, 144-6, 155 industrial development, 150-1 international trade and payments,

142-3 investment in production, 150 liberalization measures, 144-7 manufacturing decline, 150-1 and NAMA, 155 openness of economy, 208 population, 140 poverty, 152 reforms, effects of, 207-08 social safety net programmes, 152-3 tariff reform programme, 144 tariffs, 155 telecommunications, 150 tourism, 148 trade deficit, 142 trade flows, 207 trade liberalization, 143-8: impact

on development, 151-3; impact on economic growth, 148-51; process, 143-4; summary of process, 214-15

unemployment, 141-2, 151-2 wages, 149, 152 weak growth performance, 149-50

Jamaica Commodity Trading Company OCTC), 144

Jha, V. et al., 130, 138

232 Index

King, D. and S. Handa, 144, 145, 151

Kletzer, L.G., 80 Kraay, A., 12 Kumari, A., 134

labour, 71 and welfare policies, 79, 79-80

labour adjustment costs, Brazil, 108 labour market, 13

in trade policy models, 37-8 labour use, in trade policy models, 45,

47-9 laissez-faire, 211 least developed countries (LDCs), 21,

201 adjustment costs, 71 average industrial tariffs, 34 market access, and developing

country tariffs, 59-61 preference and the benefits of

NAMA negotiations, 61-4 Lopez-Cordova, E. and M.M. Moreira,

110

McMillan, M., D. Rodrik and K.H. Welch, 71, 75, 76

Magee, S.P., 74 Malawi, 8, 41, 47, 158-72, 203

adjustment programme, 159-60 agriculture, 158 average applied tariff levels, 164 elimination of non-tariff barriers,

161 exports, 159, 162, 165-6, 166-7 GOP, 158, 159, 166 human welfare, 209-10 impact of reforms, 205-06 imports, 159, 163-5, 167 inflation, 158-9, 160 international trade, 159 key trade reforms (1988-1998),

161-2 population, 158 production, 167-8 structural reform, 160 tariffs, 161-2, 169 trade liberalization, 160-8:

development impact, 168;

economic impact, 166-8; summary of process, 214-15

trade preferences, 169 transaction costs, 224 transportation costs, 168, 169

Manasan, R. and V. Pineda, 177 Manchin, M., 61 Maqtada, M., 96 Matusz, S.]. and D. Tarr, 76, 82 Mauritius, 76 MERCOSUR, 103, 104, 109, 128, 210 Michaely, M., 12 Milner, C. and P. Wright, 75, 76 minimum wage, 79, 80, 82 Mlachila, M. and Y. Yang, 97 mobility, subsidies to, 80 most-favoured-nation (MFN) rates, 23 Mozambique, 71, 76 Muendler, M., 110 Muendler, M., L. Serven and

C. Sepulveda, 110 Mujeri, M. and B. Khondker, 97 Multi-fibre Agreement, 97 Musonda, E and C. Adam, 197

non-tariff barriers, 23, 161, 192, 219

Nordas, H., 97 North American Free Trade Agreement

(NAFTA), 147, 207

Olson, M., 68 Orbeta, A. and E.M. Pernia, 172 Organization for Economic

Co-operation and Development (OECD), 64, 77, 78, 79,80, 219

output, in trade policy models, 49, 51

Pandey, M., 133, 134 Papageorgiou, D., 12 Papageorgiou, D., A. Choksi and

M. Michaely, 75 Parker, R.L., R. Riopelle and W.E Steel,

75 PATH programme, 152-3 Philippines, 8-9, 171-87

agriculture, 177, 178 average tariff rates, 174-7 development indicators, 182-3

economy, 207 emigration, 210 employment, 172, 180, 182 exports, 173, 179, 185,207 GDp, 172 Import Liberalization Programme,

173 imports, 179,207 merchandise trade, 179-80 overseas Filipino workers, 172-3 per capita income, 183 population, 172 poverty, 172, 183 production, 180--2 reforms, effects of, 207-8 social development indicators, 208 Tariff Reform Programme, 173 tariffs, 173-4, 180 trade flows, 207 trade liberalization, 173-83: effects

of freer trade policies, 178-83; simulation models, 178-9; summary of process, 216-17

trade reforms, 173-8 transaction costs, 171, 183-5,224 unemployment, 172

Pirinski, G., 122 Planning Commission of India, 131 policy strategies, 204--05 poverty, 70

Bangladesh,96-7 Bulgaria, 116, 121 and the equity issue, 72-3 India, 130, 133-4 Jamaica, 152, 152-3 Philippines, 172, 173, 183 policies directed at the poor, 80 Zambia, 188, 198, 199-200,206

poverty reduction, 108 Brazil, 108

preference eroSion, 15, 53 and tariff liberalizations, 59-65

preferences, and NAMA negotiations for LDCs, 61-4

preferential agreements, 226 preferential market access, 203-4 preferential trade agreements (PTAs),

61 private costs, 69

Index 233

private sector, adjustment costs, 67 productivity growth, exit of inefficient

firms, 78 protection, 219, 222 Prowse, S., 82 public sector, adjustment costs, 67-8

quantitative restrictions (QAs), on imports, 203

Rajapatriana, S., 144 Rama, M., 12, 13, 72, 73, 75, 76, 79,

80 Rama, M. and D. MacIssave, 75 Ramos, 1. and V. Ferriera, 108 Ravaillon, M. and M. Loskin, 73 redistribution, 72, 76

effects, 70 tools, 80

regional trade agreements (RTAs), 4 and India, 128

Reserve Bank of Malawi, 163, 165 Ribeiro, E.R. et ai., 108 Rodriguez, F. and D. Rodrik, 184 Rodrik, D., 12, 72, 184

Sarquis, S.J .B. and J .S. Arbache, 108 sectoral employment, 2 services, 2, 27-8

and credit markets, 78-9 service sector, Bulgaria, 116 'Simple Swiss' formula, 25 Singapore, 222 Soares,S., 10M. Servo andJ.S. Arbache,

108 social costs, 69 social safety nets, 13 South African Customs Union

(SACU),196 South African Development

Community (SADC), 165, 170, 192

South Asian Association for Regional Cooperation (SAARC), 128

South Asian Free Trade Area (SAFTA), 94, 128

South Asian Preferential Trade Agreement (SAPTA), 128

South-South trade, 41

234 Index

special and differential treatment (SDT), 10, 15, 223-5

special economic zones (SEZs), 127 spillovers, 79 Srivatava, V., 134 Stefanov, S., 122 Stiglitz, ]., 124 structural adjustment, 68

measuring costs, 74-6 nature of costs, 73-4

structural adjustment policies (SAPs), 91, 203

structural unemployment, 1, 4 subsidies, to mobility, 80 Swiss formula, 27, 39, 40, 42, 43, 44,

45,46,52,55-6

Takacs, W. and L.A. Winters, 74 tariff barriers, 22-5

average tariffs, 22, 23, 31 binding coverage, 22, 28, 31 India, 125 tariff escalation, 24-5 tariff peaks, 22, 24

tariff changes, 31-4 developed countries, 32 developing countries, 32

tariff liberalizations, and preference erosion, 59-65

tariff preferences, 61-4 tariff protection, difficulties in

measuring, 23 tariffreductions, 3, 11, 21, 29, 52

Brazil, 103 'July package', 13-15

tariff reforms, 203 tariff revenues, 1

under alternative scenarios, 44 tariffs, 110, 210-20, 218

ad valorem and specific, 23 average applied rates by country

grouping, 24 average levels, 220 Bangladesh, 92-3 bound and applied rates, 23 Bulgaria, 118 impact of tariff elimination, 50 import-weighted average tariff, 221 India, 125, 126-7, 129, 135

initial average bound tariff rate, 26 Jamaica, 144, 155 Malawi, 161-2, 169 MFN average tariff rates, 203 Philippines, 173-4, 180 preferential, 23 sectoral tariff elimination, 28-9, 51 simple vs. trade-weighted averages, 30 trade-weighted averages, 23, 30 uniform tariff, 222 Zambia, 189, 189-90

tax reform, 80-81 technology, 78 textiles and clothing, 207

Bangladesh, 97-8, 210 Bulgaria, 206 WTO Agreement on Textiles and

Clothing, termination, 210 Thomas, V. and]. Nash, 75 Tianshu, Chu and T.J. Prusa, 129 Trade Adjustment Fund, 16 trade agreements, 203-4

and adjustment costs, 73 bilateral and regional, 204

Trade Analysis and Information System (TRAINS), 36

trade liberalization, 203-17 and adjustment costs, 66-85 Bangladesh, 97-8, 210 Brazil, 103-06, 106-09, 208, 212-13 Bulgaria, 116-21 and domestic reforms, 225-6 expected outcomes, 222 impact on economic and social

development, 205-09 India, 129-34,208,214-15 in industrialized countries, 219 Jamaica, 143-53,214-15 Malawi, 160-8, 214-15 opposition to, 68-9 Philippines, 173-83, 216-17 timing and sequence, 76-7 Zambia, 190-1

trade liberalization shocks, channels of transmission, 71, 73-4

trade negotiation, 221 trade policy

CGE models, 35, 53 effects of changes, 35

trade policy models, 34-8 capital,38 closure, 37-8 exchange rates, 38 export revenues, 39-41 government revenues, 42 GTAP model, 36: aggregation, 36-7;

data, 36; regional, 36-7; sectoral, 37

imports, 42 labour market, 37-8 labour use, 45, 47-9 limitation of models, 35-6 output, 49, 51 sectoral tariff elimination, 51 simulations results, 38-51 welfare, 45, 46, 48

trade preferences, Malawi, 169 trade reforms

adjustment to, literature review, 3-4 rejection of, 68-70

training schemes, 79 TRAINS (Trade Analysis and

Information system), 36 transaction costs, 224

Malawi,224 Philippines, 171, 183-5,224

transport, 12 TRIMS (Trade-related investment

measures), 14, 124 TRIPS (Trade-related Aspects of

International Property Rights) agreement, 14, 124,226

and Bangladesh, 99 Tsui, K.Y., 130

UNCTAD (United Nations Conference on Trade and Development), 128

UNDP, 121 Unel, B., 134 unemployment, 1,3,48, 70, 74, 76,

81-2 Brazil, 107-08 Bulgaria, 112-13, 121 India, 209 Jamaica, 141-2, 151-2 measurement of duration, 74 Philippines, 172 Zambia, 198

unemployment insurance, 79-80

Index 235

United Nations Millennium Development goals, 133-4

United States Agency for International Development (USAID), 143

UN Millenium Project, 16 unskilled labour, developing

countries, 45, 47, 73 Uruguay, 76 Uruguay Round, 124, 174,203,226

Verdier, T., 69, 72, 76 vested interests, 220

wages, minimum wage, 79, 80, 82 weak and vulnerable economies, 26 welfare

and civil society, 70 trade policy models, 45, 46, 48

welfare poliCies, and labour, 79-80 Williamson, 0., 186 Winters, L.A., 71, 72, 73, 80 Witter, M. and P. Anderson, 152 World Bank, 102, 134, 143, 144, 146,

147, 148, 149, 152, 183, 189, 192, 194,199,206

Development Reports, 218 World Integrated Trade Solution

(WITS),36 World Trade Organization (WTO), 16,

101,125,126,142,180,226 Agreement on Textiles and

Clothing (ATC), 104: termination, 210

and Bulgaria, 117 Doha development round, and

Jamaica, 155-6 Doha trade negotiations, 1,25,

64, 225: and adjustment, 13-15

'July package', 25, 28, 29-30 negotiations, 25: capped formula,

27,39,40,43,44,45,52,57-8, 60; 'Girard formula', 27; scenarios, 26-31; sectoral tariff elimination, 28-9; Swiss formula, 27, 39, 40, 42, 43, 44, 45,46,52,55-6

236 Index

World Trade Organization (WTO) -continued

negotiations on non-agricultural market access (NAMA), 21, 25, 51-3: India, 134-6

Wu, Y., 130

Zambia, 9-10, 41, 188-202, 203 adjustment, 188-9 adjustment costs, 198-9 agriculture, 188 applied MFN tariffs, 191 comparative advantage, 200-01 copper, 188, 189,205 education, 199 effects of reforms, 193-200:

macroeconomic impact, 193-4; on revenues, 197

employment, 198 exports, 192: effects of economic

reforms on, 194,205 GOP, 188, 193, 199 human welfare, 209-10

impact of reforms, 205-06 imports, 189, 191-2 industrial output, 194-5 industrial production, 200-01 investment and savings, 193-4,

200 labour market, 197-8, 199 main trade-related reform measures,

1991-2003, 190 New Economic Recovery

programme, 189 non-tariff barriers, 192 per capita income, 188, 193 population, 188 poverty, 188, 198, 199-200,206 reforms, impact of, 205-06 social and economic indicators, 206 tariff reform, 189-90 textile and clothing sector, 195-6 trade liberalization, 190-1:

summary of process, 216-17 trade policy and reform, 189-92 unemployment, 198