Does Government Size Explain Unemployment in MENA Countries?

2020 ◽  
Vol 66 (3) ◽  
pp. 223-238
Author(s):  
Mufeed Almula-Dhanoon ◽  
Marwan Dhannoon ◽  
Mustafa Hammadi
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Negative Impact ◽  
Empirical Studies ◽  
Government Expenditure ◽  
Seemingly Unrelated Regression ◽  
Government Size ◽  
Theoretical Terms ◽  
Mena Countries ◽  
The Impact

Economists typically believe that government size is an integral determinant of labor market efficiency. Therefore, it is important in practical and theoretical terms to understand the impact of government size on the unemployment rate. Recent empirical studies indicate the negative impact of government size on labor market performance. This paper explores the relationship between government size and the unemployment rate in seventeen MENA countries during the period 2003 – 2017 using seemingly unrelated regression models (SURs). The research found a statistically significant negative effect of government size on the labor market. It also found that total government expenditure as well as investment expenditure play a dampening role on the labor market. Causality tests indicate that there is significant two-way causal relationship between government size and the unemployment rate. But the dynamic analysis of causality indicates one-direction causality from the unemployment rate to government size. The proper policy must therefore start with addressing unemployment in MENA countries, one of whose tools is government sizing.

scholarly journals Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in Selected MENA Countries

2016 ◽  
Vol 3 (2) ◽  
pp. 26 ◽  
Author(s):  
Mahmoud Mohammed Sabra
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Host Countries ◽  
Mena Countries ◽  
Domestic Capital ◽  
Domestic Savings ◽  
Seeking Behavior ◽  
The Impact

<p>This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.</p>

scholarly journals The impact of return migration on the Mexican labor market

2017 ◽  
Vol 4 (2) ◽  
Author(s):  
Jorge Eduardo Mendoza Cota
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Return Migration ◽  
Negative Impact ◽  
The Real ◽  
The Third ◽  
Real Gdp ◽  
The Usa ◽  
Migration Flows ◽  
The Impact

Abstract: Mexican return migration has been stable until 2012, while migration flows to the USA have fallen substantially between 2005 and 2012; the changes in the Mexican migration flows have affected the supply side of the Mexican labor market. The paper analyses the potential effects of the return migration on the Mexican labor market. According to the National Survey of Occupation and Employment (ENOE), return migrants to Mexico started to significantly increase since the third quarter of 2005 to the third quarter of 2009, and after that the number of returned migrants started to slightly decline until the second quarter 2013. Considering the availability of data an empirical econometric model is established including the unemployment rate as dependent variable and the real GDP and socioeconomic characteristics of migrants as explanatory variables. The results showed that changes in return migration have a positive impact in changes in the unemployment rate. On the other hand, the real GDP and migration to the USA have had a negative impact on the unemployment rate of Mexico. Given the increase of unemployment reported in ENOE, the results suggest that the inadequate capacity of the Mexican economy to absorb the return migration workers is limited. Resumen: Desde el 2012, la migración de retorno de México se ha estabilizado mientras que los flujos de trabadores migrantes se ha reducido substancialmente. En este contexto, el presente trabajo analiza los efectos de la migración mexicana de retorno en el mercado laboral en México, en particular, en la tasa de desempleo. De acuerdo a la Encuesta Nacional de Ocupación y Empleo (ENOE), la cantidad de migrantes de retorno hacia México se incrementó entre el tercer trimestre e 2005 y el tercer trimestre de 2009 y, posteriormente, el número de migrantes retornados empezó a declinar ligeramente hasta el 2013. Con base en la disponibilidad de información estadística de la ENOE se realizó una regresión de mínimos cuadrados para analizar el efecto de los cambios del PIB real y los cambios en los flujos migratorios de trabajadores mexicanos a los EUA en los cambios de la tasa de desempleo en México. Los resultados corroboran que los cambios en la migración de retorno tienen un impacto positivo en la tasa de desempleo de México. Por otra parte, el PIB real y la migración de trabajadores mexicanos tienen un impacto negativo en el desempleo laboral de México. Por tanto, considerando que la ENOE ha mostrado un incremento de la tasa de desempleo de México, los resultados sugieren la poca capacidad de la economía mexicana para absorber los migrantes de retorno y la migración declinante de trabajadores mexicanos hacia los EUA.

scholarly journals THE IMPORTANCE OF GOVERNMENT PROGRAMS IN INCREASING EMPLOYMENT EFFICIENCY IN GANJA-KAZAKH ECONOMIC REGION

2021 ◽  
Author(s):  
S. A. Hasanova
Keyword(s):  
Labor Market ◽  
Negative Impact ◽  
Supply And Demand ◽  
Economic Region ◽  
Investment Projects ◽  
Oil Sector ◽  
The Republic ◽  
State Programs ◽  
Production Areas ◽  
The Impact

The article analyzes the labor market in Ganja-Gazakh economic region, the main "State Programs for socio-economic development of the regions of the Republic of Azerbaijan" (2004-2008, 2009-2013, 2014-2018, 2019-2023) to address the employment problems of the population. directions were considered. At the same time, the current situation of employment and unemployment in the region, the interregional distribution of productive forces, the region's infrastructure, the geography of natural resources were studied. Traditional production areas for the region, preferential loans provided to entrepreneurs within the framework of financed investment projects and other issues were discussed. The measures taken to eliminate the negative impact of the global crisis on the regions of Azerbaijan since 2016, the volume of output in key sectors of the economy are reflected. The discrepancy between job supply and demand in the region's labor market, as well as the main problems arising in the process of their coordination were analyzed. The urgency of original issues such as increasing production and exports, attracting effective employment, ensuring regional development by attracting domestic and foreign investment to the regions was brought to attention. The impact of investments in the regions on the development of the non-oil sector on the country's GDP was studied. The enterprises and jobs created in Ganja-Gazakh economic region were discussed within the program. In the end, the results of the analysis were reflected and suggestions were made to eliminate the existing problems.

scholarly journals Analysis of the Impact Fiscal Fundamentals on Unemployment in Nigeria. Imperatives for Covid 19, Era

2021 ◽  
Vol 04 (05) ◽  
Author(s):  
Patrick Ologbenla ◽  
Keyword(s):  
Unemployment Rate ◽  
Government Expenditure ◽  
Research Work ◽  
Youth Unemployment ◽  
Government Revenue ◽  
Increase Productivity ◽  
Employment Generation ◽  
The Impact ◽  
The Relationship

The study examined the impact of fiscal fundamental on unemployment rate in Nigeria from 1980 to 2020 focusing on COVID-19 imperatives. The research work embraces OLS estimating techniques to estimate the relationship between the variables. The result of the analysis revealed that government expenditure had positive and significant effect on the rate of unemployment. Also government revenue had a positive but insignificant impact on unemployment during. The implication of these findings for COVID-19 is that the narrative which is obtained from the analysis needs to be changed. Government revenue should be made to have significant impact on unemployment. The pandemic has led to a lot of job lost and the unemployment rate in Nigeria has risen by about 55% peaking at 36% youth unemployment rate as at last quarter of 2020. The study therefore, recommends that government should refocus expenditure and revenue in the country in such a way it will target development of infrastructural facilities so as to increase productivity and in turn facilitate employment generation.

scholarly journals Institutional determinants of regional diversity of labor market in Poland

Equilibrium ◽  
2015 ◽  
Vol 10 (1) ◽  
pp. 129
Author(s):  
Beata Woźniak-Jęchorek
Keyword(s):  
Labor Market ◽  
Unemployment Rate ◽  
Gender Gap ◽  
Institutional Perspective ◽  
Regional Diversity ◽  
Institutional Determinants ◽  
The Difference ◽  
Employment Rates ◽  
And Gender ◽  
The Impact

The article focuses on regional diversity of the Polish Labor Market from institutional perspective. The Polish Labor Market is geographically diverse in terms of unemployment and employment rates, and also in terms of economic development. At the end of 2013 the difference between the lowest and the highest unemployment rate in the Polish regions was 12.1% (Wielkopolska located in the West Poland has unemployment rate of 9.6% and Warmia - Mazury in the East has unemployment of 21.7%). The question arises whether this difference comes from the structural or institutional sources. The paper describe the character of Polish Labor Market, whereas in the second part, it traces the impact of institutional variables such as real wage, Kaitz index and Gender gap on the regional unemployment rate in 2002–2012 in Poland.

scholarly journals The Impact of the Capture of Leaders of Criminal Organizations on the Labor Market: Evidence from Mexico

2021 ◽  
Author(s):  
Daniel Osuna Gómez ◽  
Keyword(s):  
Labor Market ◽  
Census Data ◽  
Negative Impact ◽  
Difference Analysis ◽  
Criminal Organizations ◽  
Before And After ◽  
Economic Census ◽  
The Difference ◽  
Integral Assessment ◽  
The Impact

This paper estimates the impact of the capture of leaders of criminal organizations on the labor market in municipalities where these organizations operated between 2004 and 2006. The difference-in-difference analysis compares different employment outcomes in cartel locations and the rest, before and after the capture of cartel leaders. The results show that captures caused a decrease in nominal wages and paid employment in cartel municipalities. Using Economic Census Data, I find that captures also caused a fall in the number of establishments and had a negative impact on other establishment outcomes. This document focuses exclusively on the impact of the capture of leaders of criminal organizations on the labor market until 2011 without studying other possible consequences, and thus does not make an integral assessment of this policy

scholarly journals The Impact of Debt Burden on the Number of Suicides in the Russian Regions

2021 ◽  
Vol 17 (4) ◽  
pp. 97-117
Author(s):  
Svetlana Doroshenko ◽  
◽  
Olga Sanaeva ◽  
◽  
Keyword(s):  
Mental Disorders ◽  
Unemployment Rate ◽  
Rural Areas ◽  
Negative Impact ◽  
Generalized Method Of Moments ◽  
Russian Regions ◽  
Debt Burden ◽  
Suicide Rates ◽  
Number Of Patients ◽  
The Impact

Population size is one of the most important parameters of national social and economic systems. This parameter is controlled by a variety of factors (components) that form ambiguous and complex feedback circuits. The most important issue is the study of the behavioral reactions of the population, which form certain parameters of the dynamics of the population. The authors consider only one behavioral reaction that seems to them to be important – the propensity for suicide, which ultimately leads to the formation of the suicide dynamics and which entails serious socio-economic and demographic losses. We put an emphasis on assessing the impact of financial parameters, namely households’ debt burden, on the suicide rates in the Russian regions. An econometric assessment of the influence of individual debt on the number of suicides among other socio-economic factors (unemployment rate, logarithm of GRP per capita, divorce rate, number of patients with mental disorders, average actual working week, number of alcoholics) was carried out for the regions among rural, urban populations and total. We use panel data for 80 Russian regions covering the period from 2005 to 2018. We apply the generalized method of moments (GMM) using Stata 14 statistical package. The empirical analysis demonstrates negative impact of the amount of individual debt on the number of suicides in the regions of Russia, which contradicts the results of similar studies conducted for developed economies. At the same time, some results obtained earlier in domestic and foreign studies have been confirmed, including an existence of a parabolic (U-shaped) dependence between the length of working hours and the suicide rates in the regions of the Russian Federation. In addition, there is a direct connection between an increase in the committed suicides and an increase in divorce rates and the number of patients with mental disorders. Moreover, we find out that the rise in unemployment rate and alcohol consumption leads to an increase in the number of committed suicides. This effect is especially perceptible among the people living in rural areas

scholarly journals Is the Minimum Wage Effective in a Context of Informality?

2021 ◽  
Vol 12 (1) ◽  
pp. 21
Author(s):  
Susana Herrero Olarte
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Empirical Studies ◽  
Labor Income ◽  
South American ◽  
Poverty And Inequality ◽  
South American Region ◽  
Effect Estimation ◽  
The Impact ◽  
The Relationship

There is a general trend in the South American region to increase the minimum wage (MW) to reduce poverty and inequality. However, empirical studies are inconclusive with respect to the effect of the MW. This study seeks to contribute to the empirical evidence regarding the impact of this policy by exploring its limitations and possibilities for reducing poverty in Ecuador. Unlike other studies, a measure to capture informality in the labor market is included. Using fixed effect estimation with panel data, I determine the relationship between labor income deciles and variations in the MW, using a proxy for its effectiveness. The results suggest that the MW positively affects the lower income deciles, to a lesser extent the intermediate deciles and with no effect on the higher ones. However, when considering a control for the degree of informality in the labor market, the effect on the lower deciles is mitigated. Therefore, increases in the MW may be a strategy to increase the income of the middle and vulnerable class, but it does not seem to be useful for reducing poverty.

scholarly journals Success’ Conditions of Microfinance to Fostering Sustainable Development

2020 ◽  
Vol 13 (1) ◽  
pp. 22
Author(s):  
Mongi Lassoued
Keyword(s):  
Sustainable Development ◽  
North Africa ◽  
Empirical Studies ◽  
World Bank Group ◽  
Mena Region ◽  
Loan Portfolio ◽  
Mena Countries ◽  
Negative Effect ◽  
Bank Group ◽  
The Impact

With a loan portfolio estimated at $124.1 billion in 2018, 139.9 million borrowers benefited from microfinance services, compared to just 98 million in 2009 (World Bank Group, 2018). Despite a low quality portfolio and high borrowers&#39; costs, the portfolio in the Middle East and North Africa (MENA) shows a remarkable increase of 20% but with a decrease of 6.6 points (Microfinance Barometer, 2019). Most of empirical studies have focused on the issue of microfinance, and research conducted on the effectiveness of microcredit is surprisingly scarce or even non-existent in the MENA region. In addition, microcredit could lead to sustainable development in the region via an income effect. The main objective of this paper is to determine the impact of microcredit on sustainable development for 10 selected MENA countries over the period 1990-2018. Empirical results paradoxically show a negative effect of microcredit on sustainable development. Although, the limitations of data, the present paper also contributes to the existing literature by advising conditions for the success of microcredit aiming for a better promotion of sustainable development.

The Impact of Corruption on Economic Growth

2020 ◽  
pp. 266-290
Author(s):  
Noha A. Farrag ◽  
Asmaa M. Ezzat
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Random Effects ◽  
Negative Impact ◽  
European Countries ◽  
Random Effects Model ◽  
Mena Countries ◽  
The Impact

Even though corruption is correlated to political and moral degradation, there is no consensus on the impact of corruption on economic growth. Although, theory leans to the view that corruption has negative impact on growth, still empirical evidence and counter arguments show that there might be positive implications for corruption. This paper compares the corruption impact on growth in 17 developed European countries vs. 15 developing MENA countries using a pooled OLS model and a random effects model for the period (1999-2012). This paper contributes to the literature by examining the impact of corruption on growth in scarcely examined countries in Europe and MENA. Also, the paper findings are intriguing because they show that the region, as a proxy to degree of development, significantly influences the effect of corruption on economic growth.

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