scholarly journals Import Tariffs and Informal Labour Market: A Computable General Equilibrium (CGE) Analysis for Turkey

2021 ◽  
Vol 13 (2) ◽  
pp. 213-234
Author(s):  
Hale Akbulut ◽  
Hüseyin Taylan Eğen

From the 1980s to onwards trade liberalization policies have been widely used in many countries. This process has significant impacts on many economic aspects one of which is on the labour market.  However, the direction of the relationship between trade reforms and the labour market is controversial. This study aims to analyse the effects of a specific trade reform of import tariff changes on the formal and informal labour market for Turkey. For that purpose, we benefit from Computable General Equilibrium (CGE) Model that relies on nonlinear simultaneous equations. We construct an updated Social Accounting Matrix (SAM) which is compatible with our model. Our findings indicate that while there is a positive relationship between formal labour employment in total and import tariff rates, the negative relationship occurs between informal employment and tariff rates.

2007 ◽  
Vol 8 (4) ◽  
pp. 561-577 ◽  
Author(s):  
Jim Malley ◽  
Hassan Molana

Abstract We construct a stylised model of the supply side with goods and labour market imperfections to show that an economy can rationally operate at a low-effort state in which the relationship between output and unemployment is positive. We examine data from the G7 countries over 1960-2001 and find that only German data strongly favour a persistent negative relationship between the level of output and rate of unemployment. The consequence of this is that circumstances exist in which market imperfections could pose serious obstacles to the smooth working of expansionary and/or stabilisation policies and a positive demand shock might have adverse effects on employment.


Author(s):  
Mukhtar Shuaibu ◽  
Shafiu Ibrahim Abdullahi ◽  
Muhammad Muazu Yusuf ◽  
Mustapha Yusufu

Recently the phenomenon of jobless growth has become common, defying the famous Okun law which predicted increase in job with increase in economic growth. Many factors have been advanced as explanations for this, most prominent of which are changes in the labour market and lopsidedness in economic growth. This paper is an attempt to measure labour market dynamics in Nigeria focusing on the relationship between economic growth and unemployment. The paper used data from 1991 to 2020 and employed GMM and ARDL models to analyze the data. Unlike the Okun law which prophesies negative relationship between unemployment and economic growth, the result from this analysis show that there is positive relationship between unemployment and economic growth, confirming the existence of the phenomenon of jobless growth in Nigeria. The paper recommended structural changes in the economy and the labour market.


Author(s):  
Katrin Böttcher ◽  
Anne-Grit Albrecht ◽  
Laura Venz ◽  
Jörg Felfe

Demographic and labour market changes increase the need to enhance the employability of employees across all ages. The purpose of this study is to explore the role of transformational leadership in employees’ employability. While we hypothesised that age is negatively related to perceived internal and external employability, we expected a positive relationship for transformational leadership, and that transformational leadership would moderate the relationship between age and employability. Hypotheses were tested using a sample of 1006 employees in the German automotive industry. Results show age to be negatively related to internal and external employability, with both relationships being comparably strong. Transformational leadership was positively related to internal and external employability, with the relationship with internal employability being stronger. Moreover, transformational leadership buffered the negative relationship between age and internal employability. These results suggest that transformational leadership is crucial in protecting lifetime employability and that it should be promoted.


2014 ◽  
Vol 6 (1) ◽  
pp. 55-72
Author(s):  
Huey-Lin Lee ◽  
Ching-Cheng Chang ◽  
Yungho Weng ◽  
Sheng-Ming Hsu ◽  
Shih-Hsun Hsu ◽  
...  

Purpose – The purpose of this paper is to assess the degree of tariff escalation in Taiwan's agriculture-related commodities and the economy-wide impact of tariff harmonization. Design/methodology/approach – A computable general equilibrium model of the Taiwan economy is applied to simulate for the economy-wide impact of three alternative proposals that reduce tariff rates as well as the degree of tariff escalation in agriculture-related products. Findings – The paper shows that reduction in tariff wedge helps increase social welfare of Taiwan at the expense of some agricultural sectors. Based on the pair-wise comparisons of the three tariff reduction proposals, the scenario where the upstream products have the least reduction would have agricultural sectors fare better than in the other scenarios where more negative impact on output and employment would occur to agricultural sectors. Originality/value – The paper assesses quantitatively the economy-wide impact of reducing tariff wedges between unprocessed and processed products, which is rarely seen in the literature using a detailed computable general equilibrium model.


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