Is Trade Liberalization a Solution to the Unemployment Problem?

This paper examines how trade liberalization affects the growth rate of employment in developed and developing countries. The estimation results imply that trade openness in the form of higher trade volumes has not been successful in generating jobs in developing countries. The overall weak, negative employment response to trade volumes may be explained by the negative output response to trade openness in these countries. Our estimates also indicate that higher trade volumes have adverse effect on industrial and agricultural employment in developed countries. Moreover, trade barriers have relatively little adverse effect and/or in some cases positive effect on employment both in developing and developed countries. Thus, it is probably safe to conclude that both higher (or lower) output and employment growth rates can stem from trade and industrial policies implemented by these countries.

"Institutions and the Impact of Government Spending on Growth"

This paper reports the results of a study of the impact of government expenditures on economic growth, emphasizing how government effectiveness in developing nations influences the productivity of government spending. The effects of categories of government spending on growth are also examined. No significant positive effects are found for defense, education and health variables. Consumption expenditures have negative growth effects in developed and developing nations, with a more detrimental impact in developing nations with ineffective governments. Developing nations with ineffective governments benefit from capital expenditures. To stimulate growth, developing nations should limit their governments’ consumption spending and invest in infrastructure.Government spending, Institutional Quality, Economic Growth

"Minerals, Openness, Institutions and Growth: An Empirical Analysis"

Empirical evidence from a panel-data analysis indicates that a mineral resource curse exists for certain developing countries, but not for developed countries. Countries with weak institutions are cursed, while developing countries with strong institution are able to avoid the curse. These results are consistent the hypothesis that owners of mineral resources use weak institutions and openness to trade to stifle the development of human capital, to the detriment of growth of other sectors of the economy. Imports of manufactured goods substitute for the development of domestic manufacturing, so openness to trade correlates with lower growth in mineral dependent countries.Mineral Resources, Institutional Quality, Economics Growth

Is trade liberalization a solution to the unemployment problem?

This paper examines how trade liberalization affects the growth rate of sectoral employment in developed and developing countries. The estimation results imply that trade openness in the form of higher trade volumes has not been successful in generating jobs in developing countries. The overall weak, negative employment response to trade volumes may be explained by the negative output response to trade openness in these countries. Our estimates also indicate that higher trade volumes have adverse effect on industrial employment in developed countries. Moreover, while they have positive effect on employment in industry and services in developing countries, trade barriers have adverse effect on employment growth in services for developed countries. Our overall results imply that while trade barriers have relatively little adverse effects and/or in some case a positive effect on employment both in developing and developed countries, higher trade volumes have an adverse effect on industrial employment in developed economies. Thus, trade openness is not in itself a solution to the unemployment problems of developing countries and yet it has not been the prime factor to blame for the lower employment levels in developed countries.info:eu-repo/semantics/publishedVersio

Does Capital Account Liberalization Raise Long-Run Economic Growth?

This paper investigates the growth effects of the restrictions on capital account payments as a measure of financial openness. Estimation results show that restrictions on capital flows are weakly and negatively correlated with growth and more importantly, regression results for this measure are mainly distorted by the reverse causation. Our results indeed fail to provide any conclusive evidence on the issue of capital account liberalization. However, these results do not either support the further implementations of controls on capital flows, especially on long-term capital flows

Uluslararası Mali Müdahalenin Ekonomik Büyüme Üzerine Etkileri: Bir Literatür Taraması

Uluslararası Mali Müdahalenin Ekonomik Büyüme Üzerine Etkileri: Bir Literatür Taraması Gelişmekte olan ülkelerin çoğu II. Dünya Savaşı sonrası dönemde çeşitli zamanlarda uluslararası ekonomik sistemde önemli yere sahip olan Uluslararası Para Fonu (IMF) ve Dünya Bankası programlarını uygulamışlardır. Fakat, özellikle IMF programları olmak üzere bu programların gelişmekte olan ülkelerin ekonomik büyüme süreçlerini olumsuz etkiledikleri yönünde ciddi suçlamalar yapılmaktadır. Bu çalışmada, mevcut literatür incelenerek bazı sonuçlara ulaşılmıştır. Her ne kadar kısa dönemli IMF programlarının ülkelerin ekonomik büyüme süreçlerine etkisinin ya olmadığı ya da negatif olduğu yönünde sonuçlar mevcutsa da uzun dönemli IMF programlarının etkisinin olumlu olduğunu gösteren çalışmalar da vardır. Dünya Bankası programlarının ülkelerin ekonomik büyümesine etkisinin ise daha olumlu olduğu belirtilmektedir. Ayrıca, literatürde, bu programlardan beklenen sonuçların alınamamasının çok çeşitli nedenleri üzerinde durulmaktadır. Fakat, uluslararası sistemde oynadıkları bazı önemli rollerin olduğu gerçeği de bu kurumların etkinliğinin değerlendirilmesi aşamasında göz önüne alınmasının gerekliliği de açıktır.Most of the developing countries have been clients of both the International Monetary Fund and the World Bank in the post-war era. Yet, their programs have usually been blamed for generating adverse growth effects in the recipient countries. The effectiveness of IMF lending, in particular, regularly criticized as "anti-growth" and "anti-poor". Thus, this paper reviews the available literature and conclude that while short-term fund lending is either neutral or detrimental to growth, there are some evidence suggesting that longer term IMF programs are likely to have positive growth effects. Where as available evidence suggests that Bank lending has relatively more positive growth effects in developing countries. In the literature, a large number of factors cited as possible causes of failure of these programs. However, it is crucial to recognize other roles played by the institutions to get comprehensive view of their importance for the developing as well as developed countries

Time-Consistent Polities and Growth in Developing Countries: An Empirical Analysis

Property rights, stability, growth, democracy, autocracy,

The Impact of Global Value Chain Participation on Sectoral Growth and Productivity

This study investigates the impact of participation in global value chains (GVCs) on sectoral value-added and total factor productivity growth (TFP) for two different time periods of 1995–2011 and 2005–2015. In addition to the commonly used participation indices, we also calculate lesser known measures of backward and forward participation indices, as suggested by the OECD. Our Generalized Method of Moments (GMM) estimations for the full sample indicate that sectors with higher GVC participation experience much higher output and TFP growth, especially for the period 1995–2011. Overall, our results imply that there have been decreasing gains from GVC participation in the later period. Note that our estimates for both output and TFP growth are very much similar. This means that participation in GVCs promotes not only output growth but also productivity growth across sectors. Considering the parameter heterogeneity, we repeat our estimations for manufacturing and services separately. Although for the earlier period both the manufacturing and services sectors benefit from more participation in terms of higher output and productivity growth, only the manufacturing sector experiences higher productivity growth from more participation for the period 2005–2015. Relatively less significant and smaller estimates for the later period covering the latest global crisis imply that participation in GVCs fails to bring satisfactory gains to countries and sectors