scholarly journals International trade in services and inequalities

2016 ◽  
Vol 23 (5) ◽  
pp. 1069-1075 ◽  
Author(s):  
Sylvain Petit
Keyword(s):  
Wage Inequality ◽  
Developed Countries ◽  
Tourism Industry ◽  
Skilled Workers ◽  
Business Services ◽  
Long Run ◽  
Short Run ◽  
Unskilled Workers ◽  
Tourism Services ◽  
The Impact

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semi-skilled, and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an error correction model were used to distinguish between the short- and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long run and the short run.

scholarly journals DIRECTED TECHNOLOGICAL CHANGE: A KNOWLEDGE-BASED MODEL

2013 ◽  
Vol 19 (1) ◽  
pp. 116-143 ◽  
Author(s):  
Tailong Li ◽  
Shiyuan Pan ◽  
Heng-fu Zou
Keyword(s):  
Technological Change ◽  
Wage Inequality ◽  
Scale Effects ◽  
Developed Countries ◽  
Skilled Workers ◽  
Developed Country ◽  
Knowledge Based ◽  
Biased Technological Change ◽  
Unskilled Workers ◽  
Directed Technological Change

In a knowledge-based growth model where skilled workers are used in innovation and production, skill-biased technological change may lower average R&D productivity via an innovation possibilities frontier effect that eliminates scale effects. We show that skill-biased technological change increases the skill premium even if the elasticity of substitution between skilled and unskilled workers is less than two. Trade between developed countries promotes skill-biased technological change, thus raising wage inequality. Trade between developed and developing countries has differing effects: it induces relatively skill-replacing technological change and lowers wage inequality in the developed country but has the opposite effects in the developing country. Finally, we show that trade can stimulate or hurt economic growth.

BUSINESS SERVICE, INTERNATIONAL OUTSOURCING, AND WAGE INEQUALITY

2018 ◽  
Vol 63 (05) ◽  
pp. 1175-1182
Author(s):  
CHU-PING LO
Keyword(s):  
Wage Inequality ◽  
Service Sector ◽  
Developing Economies ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
Business Service ◽  
International Outsourcing ◽  
Business Services ◽  
Production Externalities ◽  
The Impact

This paper adds business services to Feenstra and Hanson’s (1996) model to show that if a country is more prosperous in business services, tending to carry out less international outsourcing activities than it would otherwise. In this model, the more varieties of specialized business services a country endows, the more welfare gains arise in the presence of positive production externalities to the manufacturing sector. Since developed countries are more prosperous in business service sector, this model helps to explain why the impact of opening trade on the dispersion of both wages and unemployment is stronger in developing economies.

scholarly journals Fairness, Search Frictions, and Offshoring

2013 ◽  
Vol 13 (1) ◽  
pp. 137-172 ◽  
Author(s):  
Devashish Mitra ◽  
Priya Ranjan
Keyword(s):  
Wage Inequality ◽  
Open Economy ◽  
Closed Economy ◽  
Skilled Workers ◽  
Unemployment Rates ◽  
Unskilled Workers ◽  
Fairness Concerns ◽  
The Cost ◽  
The Impact

Abstract: Fairness considerations are introduced into the determination of wages in a two factor Pissarides-style model of search unemployment to study its implications for the unemployment rates of unskilled and skilled workers in both the closed economy case and when the economy can offshore some inputs. Both fairness concerns and offshoring of jobs done by unskilled workers create the overhiring effect for skilled workers. An increase in the concern for fairness in the closed economy increases the cost of hiring unskilled workers and increases the unemployment rates of both types of workers; however, wage inequality decreases. In the open economy case, an increase in the concern for fairness leads to greater offshoring which prevents skilled unemployment from increasing, but the unemployment of unskilled workers increases. A reduction in the cost of offshoring also increases offshoring and increases the unemployment of unskilled workers, but has a positive effect on skilled workers. Due to the presence of an overhiring effect in the hiring of skilled workers for both offshoring and non-offshoring firms, skilled workers experience higher wages and lower unemployment. The opposite movements in skilled and unskilled unemployment render the net effect ambiguous. Even though wage inequality increases, the impact on the wages of unskilled workers is ambiguous.

ENDOGENOUS POLITICAL INSTITUTIONS, WAGE INEQUALITY, AND ECONOMIC GROWTH

2016 ◽  
Vol 21 (1) ◽  
pp. 183-213 ◽  
Author(s):  
Christos Pargianas
Keyword(s):  
Labor Force ◽  
Wage Inequality ◽  
Political Institutions ◽  
College Graduates ◽  
Political Process ◽  
Skill Premium ◽  
The Political ◽  
Skilled Workers ◽  
Long Run ◽  
Short Run

The paper suggests that the political changes brought about by the increase in the proportion of college graduates in the U.S. labor force in the 1970s may have contributed to the decline in the college premium during the 1970s and its increase during the 1980s and 1990s. The study argues that the proportion of skilled workers in the labor force affected their relative importance in the political process. Thus, the increase in the proportion of skilled workers during the 1970s reduced the skill premium in the short run, but induced a change in policies that favored skilled workers and increased the skill premium in the long run.

scholarly journals No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes

2011 ◽  
Vol 3 (2) ◽  
pp. 97-129 ◽  
Author(s):  
Tarjei Havnes ◽  
Magne Mogstad
Keyword(s):  
Child Care ◽  
No Child Left Behind ◽  
Large Scale ◽  
Developed Countries ◽  
Positive Effects ◽  
Left Behind ◽  
Long Run ◽  
Short Run ◽  
Low Educated ◽  
The Impact

Many developed countries are currently considering a move toward subsidized, widely accessible child care or preschool. However, studies on how large-scale provision of child care affects child development are scarce, and focused on short-run outcomes. We analyze a large-scale expansion of subsidized child care in Norway, addressing the impact on children's long-run outcomes. Our precise and robust difference-in-differences estimates show that subsidized child care had strong positive effects on children's educational attainment and labor market participation, and also reduced welfare dependency. Subsample analyses indicate that girls and children with low-educated mothers benefit the most from child care. (JEL J13, J16)

scholarly journals The Impact of Human Capital on Economic Growth in Ethiopia: Evidence from Time Series Analysis

2020 ◽  
Vol 1 (1) ◽  
pp. 51-73
Author(s):  
Mekoro Arega
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Secondary School ◽  
Skilled Workers ◽  
School Enrolment ◽  
Long Run ◽  
Causality Tests ◽  
Secondary School Enrolment ◽  
Short Run ◽  
The Impact

The general objective of the study was to analyze the impact of human capital development on economic growth in Ethiopia over the period 1974/5 -2018/9. The econometric models of Johnesan cointegration, VECM and causality tests were applied to analysis short-run and long-run impact of Human capital on Economic growth. The result of the error correction model shows that the model is adjusting at a relatively stable rate of 74.3% towards the long-run equilibrium. Furthermore, the result shows that human capital proxied of (primary and secondary school enrolments) and active labour force have a positive statistical significant long run and short-run effect on economic growth in Ethiopia. Such findings are consistent with the endogenous growth theories which argue that an improvement in human capital (skilled workers) improves productivity. In addition, results reveal that education expenditure and life expectancy at birth have a positive and statistically significant long-run effect on economic growth. However, the expenditure on health, secondary school enrolment and official development assistance are statically significant and have an unexpected negative impact on long-run economic growth. Furthermore, the short-run causality tests results reveal that public expenditure on education, primary school enrolment, secondary school enrolment and RGDP have unidirectional causal effects. Hence policymakers and/or the government give prioritize to create institutional capacity that increase school enrolment and strengthening the infrastructure or investment of educational and health institutions that produce quality of manpower to increase productivity.

scholarly journals The Impact of E-Commerce on International Trade: Case of Turkey

2019 ◽  
Vol 10 (01) ◽  
pp. 21190-21209
Author(s):  
Ameer Mahdi Nassrullah Mzwri ◽  
Zelha Altinkaya
Keyword(s):  
International Trade ◽  
Electronic Commerce ◽  
Developed Countries ◽  
Geographical Distance ◽  
Doing Business ◽  
Long Run ◽  
Short Run ◽  
In The Beginning ◽  
Corporate Profits ◽  
The Impact

The purpose of the present paper is to investigate the impact of electronic commerce on international trade with the case studying of Turkey. E-commerce offers economy-wide benefits to all countries. The benefits are probably to be concentrated in developed countries in the short run, but developing countries will have more to benefit in the long run. Applying electronic commerce in both own and foreign country will affect corporate profits badly in the beginning, but after a certain step of progress, it will promote the rapid growth of corporate profits. The theories covered in this paper are simply those theories which have helped business, governments, and economics to better understand international trade and also to better understand how to manage, regulate, and promote international trade. The capacity of international trade will rise via e-commerce. New opportunities for international trade have created throughout internet. The way of communicating or doing business and trade between companies and individuals has changed as the geographical distance decreased between buyers and sellers.

scholarly journals THE RELATIONSHIP BETWEEN POLITICAL RISK AND EMPLOYMENT IN TOURISM: A CASE OF SOUTH AFRICA

2021 ◽  
Vol 9 (2) ◽  
pp. 78-88
Author(s):  
Jean Claude Manaliyo ◽  
Keyword(s):  
Time Series Data ◽  
Political Risk ◽  
Tourism Industry ◽  
Series Data ◽  
Long Run ◽  
Tourism Sector ◽  
Short Run ◽  
High Level ◽  
The Impact ◽  
The Relationship

Political risk is one of the determinants of employment in the tourism industry. Changes in the level of political risk in a country result in fluctuations in employment in the tourism sector. Countries with a high level of political risk experience a decline in employment whereas countries with a low level of political risk experience an increase in employment. This paper investigates the impact of political risk on employment in South Africa’s tourism industry using quarterly time series data for the period between 2007 and 2017. The study employs the Autoregressive Distribution Lag (ARDL) model to determine the impact of political risk on employment in tourism in both the short- and long-run. The results from the analysis reveal that political risk has both short- and long-run effects on employment in South Africa’s tourism industry. When the level of political risk declines by 1%, employment grows by 5.016% in the long-run whereas employment increases by 1.51% in the short-run when the level of political risk declines by 1%. These results imply that governments have to keep the level of political risk low by avoiding political risk events and actions for the tourism industry to create additional employment opportunities.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

An Econometric Analysis on the Relationship between Globalisation and Inequality in South Africa

2020 ◽  
Vol 11 (1) ◽  
pp. 89-89
Author(s):  
Jacques de Jongh
Keyword(s):  
South Africa ◽  
Well Being ◽  
Causality Analysis ◽  
Global Integration ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Distribution Of Resources ◽  
Short Run ◽  
The Impact

Globalisation has had an unprecedented impact on the development and well-being of societies across the globe. Whilst the process has been lauded for bringing about greater trade specialisation and factor mobility many have also come to raise concerns on its impact in the distribution of resources. For South Africa in particular this has been somewhat of a contentious issue given the country's controversial past and idiosyncratic socio-economic structure. Since 1994 though, considerable progress towards its global integration has been made, however this has largely coincided with the establishment of, arguably, the highest levels of income inequality the world has ever seen. This all has raised several questions as to whether a more financially open and technologically integrated economy has induced greater within-country inequality (WCI). This study therefore has the objective to analyse the impact of the various dimensions of globalisation (economic, social and political) on inequality in South Africa. Secondary annual time series from 1990 to 2018 were used sourced from the World Bank Development indicators database, KOF Swiss Economic Institute and the World Inequality database. By using different measures of inequality (Palma ratios and distribution figures), the study employed two ARDL models to test the long-run relationships with the purpose to ensure the robustness of the results. Likewise, two error correction models (ECM) were used to analyse the short-run dynamics between the variables. As a means of identifying the casual effects between the variables, a Toda-Yamamoto granger causality analysis was utilised. Keywords: ARDL, Inequality, Economic Globalisation; Social Globalisation; South Africa

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