Search results

1 – 10 of over 64000
Open Access
Article
Publication date: 14 March 2024

Rakesh Kumar

India started economic reforms at a rapid pace to catch up the world economy by following the services-led-growth model during the post-liberalisation period. Over the years, the…

Abstract

Purpose

India started economic reforms at a rapid pace to catch up the world economy by following the services-led-growth model during the post-liberalisation period. Over the years, the growing unemployment rate posits a re-look into the dynamics of growth model for wider work force participation. In this backdrop, the paper aims to examine the dynamics of structural changes in employment pattern in view of economic growth led by services-led growth model in India.

Design/methodology/approach

The study employs a non-linear autoregressive model (NARDL) to examine the effect of the growth rates in three broad economic sectors namely agriculture and allied, services and industry on work force participation representing the employment opportunities in India.

Findings

The results highlight that the rapid expansion of the service sector has not occurred with enough employment opportunities by the same rate. By contrast, the growth in the industrial sector significantly creates employment opportunities in the short and long run. These results support the industry led growth model over the services for sustainable and inclusive economic growth in the country.

Research limitations/implications

The study relies on combined labour force participation rates rather than gender-specific rates. Further, the regulatory, working conditions and economic incentives may affect the gender-specific engagement of the labour force in three broad sectors.

Practical implications

The results offer important insight into changing patterns in employment with policy lessons. A wider workforce force participation calls for expansion of manufacturing activities through pro-industry programmes.

Originality/value

The study makes pioneer efforts to examine the dynamics of labour force participation with respect to the growth of three broad economic sectors of the Indian economy. The results provide new insights with policy implications for the changing employment pattern and policy response.

Details

Review of Economics and Political Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2356-9980

Keywords

Article
Publication date: 30 August 2023

William Obeng-Amponsah and Erasmus Owusu

This study examines the effect of foreign direct investment (FDI) on employment and economic growth in Ghana and examines the role of technology in these relationships.

Abstract

Purpose

This study examines the effect of foreign direct investment (FDI) on employment and economic growth in Ghana and examines the role of technology in these relationships.

Design/methodology/approach

This study applied the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and Granger causality tests to data from 1995 to 2017.

Findings

Based on the empirical analysis, the key findings are as follows: FDI does not affect economic growth or employment in Ghana. However, technology moderates the relationship between FDI and economic growth and FDI and employment in the short run. The study also finds that technology exerts a positive effect on economic growth in both short and long run, whereas trade has a significantly negative effect on economic growth in Ghana.

Research limitations/implications

The greatest constraint that faced the authors is the nonavailability of data,.

Practical implications

The transfer of technology agreement enshrined in the GIPC Act should be made more robust and unambiguous, to make it a strict requirement for MNEs to be allowed to operate in Ghana. This increases Ghana's gains from FDI inflow.

Social implications

The GIPC should tighten its monitoring regime so that MNEs do not exceed their expatriate employment quotas. This will ease the burden of unemployment among the youth in Ghana.

Originality/value

This study adds a new dimension to the literature on the impact of FDI on emerging economies by examining the role of technology in the association between FDI and growth, and FDI and employment.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 28 August 2019

Vinoj Abraham

This paper aims to analyse the observed “jobless growth” between 1993-1994 and 2011-2012 based on structural transformation to explain why the elasticity of employment generation…

Abstract

Purpose

This paper aims to analyse the observed “jobless growth” between 1993-1994 and 2011-2012 based on structural transformation to explain why the elasticity of employment generation to gross domestic product growth has declined during this period.

Design/methodology/approach

This paper uses the job generation and growth decomposition tool to quantify the effects of inter-sectoral mobility of workers, intra-sectoral productivity changes and demographic changes on per capita value added growth. Alternative scenarios are generated to simulate the effect of higher female labour participation rates.

Findings

Structural transformation in India between 1993-1994 and 2011-2012 was characterised by increasing labour productivity in most sectors, inter-sectoral mobility of workers and a decline in the employment rate. About 81 per cent of the increase in per capita value added was because of a rise in labour productivity; about 24 per cent was because of inter-sectoral shifts of labour; and about 9 per cent because of demographic changes. The decline in the employment rate had a negative effect of −14.20 per cent. The process of transformation was unconventional. First, labour productivity growth was the highest in the service sector and second, the bulk of the movement of labour was to the construction sector.

Research limitations/implications

This paper focusses only on the quantitative dimensions of employment and offers no new explanations why female labour force participation declined.

Originality/value

This paper offers a new perspective on the debate of jobless growth focussing on structural transformation.

Details

Indian Growth and Development Review, vol. 12 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 29 November 2018

Esteban Lafuente, Yancy Vaillant and Jorge Moreno-Gómez

The purpose of this paper is to evaluate how different strategic choices related to the transitions in-and-out of exporting (export entry, export persistence, export exit) impact…

Abstract

Purpose

The purpose of this paper is to evaluate how different strategic choices related to the transitions in-and-out of exporting (export entry, export persistence, export exit) impact employment growth in Romanian small- and medium-sized businesses.

Design/methodology/approach

Using linear regression models on a sample of 566 Romanian SMEs, The authors model employment growth as a function of three different dimensions of foreign market participation: export entry, persistence and exit.

Findings

Results indicate that exporting is positively associated with employment growth. The findings reveal that the different strategic choices linked to exporting have a differentiating impact on employment growth: while employment growth is more pronounced among new exporters which points to the presence of an impulse effect of exporting, businesses that interrupt their exporting activities report employment losses.

Research limitations/implications

This study underlines the relevance of distinguishing the specific impact of the different export behaviours related to the transitions in-and-out of exporting.

Practical implications

The results of the study fuel the debate on the relevance of promoting policies that encourage exporting among small businesses operating in emerging economies.

Originality/value

This study presents an original analysis of the distinctive effect that different forms of export behaviour related to the transitions in-and-out of exporting have on employment growth. The relevance of this study not only flows from the particular empirical design that simultaneously evaluates different export choices and their specific impact on employment growth.

Details

International Journal of Emerging Markets, vol. 13 no. 6
Type: Research Article
ISSN: 1746-8809

Keywords

Book part
Publication date: 8 April 2024

Dennis Nchor

The growing use of internet communication technology has led to increased economic growth across the world, and this chapter seeks to assess the case of Czechia. The study also…

Abstract

The growing use of internet communication technology has led to increased economic growth across the world, and this chapter seeks to assess the case of Czechia. The study also examines the changing employment distribution in the labour market with the growing influence of information and communication technology (ICT). The multiple indicators and multiple causes model as well as changes in employment or earnings shares of occupations are used for the analysis. The findings show that increased use of ICT contributes to growth in GDP and employment. It also shows that ICT has contributed to rising labour and factor productivity through increased innovation. There is also increased demand for highly educated labour leading to growth in employment in high skill occupations, while the share of low and middle skill occupations declines. The situation, however, does not indicate job polarisation in the labour market and total employment is still increasing. The study also finds that investment and use of ICT has led to progressive development in the human development index of the Czech Republic and a decline in the gender inequality index.

Details

Modeling Economic Growth in Contemporary Czechia
Type: Book
ISBN: 978-1-83753-841-6

Keywords

Article
Publication date: 19 October 2010

Enrico Marelli and Marcello Signorelli

The purpose of this paper is to identify the main “models of growth” characterising the EU countries in the last two decades, with particular reference to the employment

2812

Abstract

Purpose

The purpose of this paper is to identify the main “models of growth” characterising the EU countries in the last two decades, with particular reference to the employment‐productivity relationship, and to reveal the key determinants of productivity.

Design/methodology/approach

After a survey of the relevant literature, the empirical section analyses the “models of growth” by graphical inspection, identifying four models (for EU‐27 in the 1990‐2008 period): extensive, intensive, virtuous, and stagnant. Then different econometric investigations (beta convergence, dynamic panel with GMM estimation, fixed effects panel, cross‐section) are used to test the “diminishing returns of employment rate” hypothesis (for the 2000‐2006 period), to assess the convergence processes and to determine the key variables affecting productivity.

Findings

The main finding is the confirmation of the hypothesis mentioned: high employment growth is likely to lead to slower productivity growth. Moreover, besides verifying the beta convergence of productivity per worker, the most significant determinants of productivity are the following: education, a transition index, some structural indicators, and a “shadow economy” proxy. Finally, the descriptive analysis shows that “old” EU countries, coming from two decades of “jobless growth”, shifted to an “extensive” growth model; in contrast, transition countries (NMS) followed the opposite path: reducing employment and raising productivity.

Research limitations/implications

It would be advisable to extend the period of the analysis, as soon as new data become available.

Practical implications

The main policy implication is to get the EU Lisbon strategy – i.e. to create “more and better” jobs – working effectively.

Originality/value

The most original finding is the clear assessment of an employment‐productivity trade‐off. Also, the different models of growth are categorised simply and effectively.

Details

International Journal of Manpower, vol. 31 no. 7
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 21 September 2012

M. Adetunji Babatunde, Olugboyega A. Oyeranti, Abiodun S. Bankole and E. Olawale Ogunkola

Poverty reduction remains one of the main goals of development efforts, as evidenced by the adoption of the Millennium Development Goals by most developing countries and…

5001

Abstract

Purpose

Poverty reduction remains one of the main goals of development efforts, as evidenced by the adoption of the Millennium Development Goals by most developing countries and international agencies. The purpose of this paper is to explore the relationship between trade (exports) and employment and how the relationship reduces poverty through the instrumentality of employment, with a focus on Nigeria.

Design/methodology/approach

The paper takes the form of descriptive analysis.

Findings

Evaluating the case for Nigeria, the authors find that oil exports which drives economic growth do not provide the needed employment to reduce poverty, while agricultural trade, particularly exports, are capable of reducing poverty and inequality in Nigeria through the channel of employment and agricultural productivity growth.

Originality/value

The paper makes a link between export trade, employment and poverty reduction in Nigeria.

Details

International Journal of Social Economics, vol. 39 no. 11
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 July 2014

Mohamed Hassan and Magda Kandil

Job creation is the most important challenge facing Egypt today. Economic performance has been uneven over the last three decades, but even in periods of high growth, the job…

Abstract

Purpose

Job creation is the most important challenge facing Egypt today. Economic performance has been uneven over the last three decades, but even in periods of high growth, the job content of growth has not been strong enough to absorb new entrants. The 1990s and early 2000s saw the acceleration in the structural adjustments. The fast growing role of the private sector and the contraction of public sector employment are considered the most important characteristics of this period. The paper aims to discuss these issues.

Design/methodology/approach

The findings of the paper support the view that sectoral shifts, in response to structural transformations, have been an important source of private employment fluctuations in Egypt, and the implications on aggregate employment have varied with the stage of the business cycle in the private sector. Moreover, one of the important findings of the paper shows that public sectoral shifts have caused stronger effects on private employment growth than private sectoral shifts do. However, failure to align public sectoral shifts with growth in the private sector has had a negative effect on employment growth, increasing aggregate unemployment.

Findings

The findings also confirm the crowding-out effect of higher government expenditure on private employment, particularly during a boom. Finally, the findings show that changes in domestic credit going to the private sector as a ratio of private GDP, and higher exports ratio to GDP have statistically significant positive effects on private employment growth.

Originality/value

Overall, the findings signify the importance of policies that aim at increasing the job content of private-led growth in Egypt.

Details

International Journal of Development Issues, vol. 13 no. 2
Type: Research Article
ISSN: 1446-8956

Keywords

Article
Publication date: 17 July 2017

Alfonso Mendoza-Velazquez

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and…

Abstract

Purpose

This study investigates the existence of Marshall, Jacob and Porter’s type of externalities in Mexico. We measure the impact of industrial specialization, competition and diversity on employment growth for the period 2004 to 2008.

Design/methodology/approach

The analysis is based on data from 41 highly dynamic industrial clusters originally obtained by applying Porter’s (1998) methodology. We use a cross-section specification estimated via instrumental variables and two-stage least square estimation (2SLS) to control for endogeneity.

Findings

On average, we find that industrial specialization exerts a negative impact on employment growth within states and within clusters, indicating that traded industries in Mexico carry very little innovation, operate in early stages of the life cycle, face high costs of employment reassignation or exhibit low adaptability. A negative impact of specialization on employment conforms with Jacobs (1969) type of externalities and confirms what other studies have found in France (Combes, 2000), Korea (Lee et al., 2005) and the USA (Delgado et al., 2014). The authors also find that competition generates more employment.

Research limitations/implications

Industrial data at the sub-branch level were obtained from the Economic Census (EC) of the National Institute of Geography and Statistics (INEGI). The EC information for 2004 was still not fully compatible with the North America Industry Classification System (NAICS), with 262 of the 309 data at the fourth-digit level aligned to the USA. In addition, industrial information from the EC is recorded every four years, which prevents this study to use panel data techniques and it makes it impossible to use time series methods.

Practical implications

Policymakers can clearly identify competition forces having a significant impact on employment growth. This can orient policymakers to implement measures to encourage the development of some of these clusters, as well as to identify some of the sources that drive specialization, competition and diversity.

Originality/value

This paper contributes to the debate on the existence of Marshallian (MAR), Jacobian and Porter externalities. This is the first study using the definition of traded clusters in Mexico, which allows the authors to identify how specialization, competition and diversity forces drive the dynamics of regional employment growth.

Details

Competitiveness Review: An International Business Journal, vol. 27 no. 4
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 22 February 2011

Esteban Lafuente and Rodrigo Rabetino

The objective of this paper is to examine the impact that certain human capital variables have over employment growth of small firms in Romania.

2280

Abstract

Purpose

The objective of this paper is to examine the impact that certain human capital variables have over employment growth of small firms in Romania.

Design/methodology/approach

The human capital components considered in this paper are education, previous work experience, employment motivations, the presence of entrepreneurial teams, and the presence of family members in the firm. To attain the objective of the paper we carry out a regression analysis using a rich data set of 635 Romanian firms for the year 2006.

Findings

Consistent with different employment growth measures, the empirical findings indicate that human capital matters for explaining small firms' employment growth. Previous work experience, the presence of entrepreneurial teams and the proportion of family members working in the business appear as determinant components. In addition, the results indicate that an active involvement of the entrepreneur in managerial tasks increases the intensity with which the entrepreneur makes use of his/her human capital, and this leads to higher employment growth rates.

Research limitations/implications

The main limitation of the paper lies in the absence of a longitudinal analysis that could have given a greater perspective to the study. In order to enrich the analysis, future research should attempt to further explore the impact of human capital components on small firms' growth in other transition economies.

Originality/value

The paper increases the literature dealing with the determinants of small firms' growth in transition economies. The results of the paper also have important implications for academics and support institutions in Romania, as they suggest that, in the Romanian context, small firms may obtain significant benefits from support policies more oriented towards the formation of human capital.

Details

Journal of Small Business and Enterprise Development, vol. 18 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

1 – 10 of over 64000