Trade, capital accumulation and structural unemployment: an empirical study of the Singapore economy
AbstractThis paper studies the factors responsible for the secular decline of Singaporeâs unemployment rate over the period 1966-2000 in an environment of low and stable inflation rates. We introduce wage bargaining and unions into a specific-factors, two-sector economy with an export sector and a non-tradable sector to obtain an endogenous natural unemployment rate. Increases in the relative export price and capital stock in the export sector are predicted to reduce structural unemployment. These hypotheses could not be rejected based on structural estimations and co-integration regressions. Empirically, capital accumulation in the export sector explains most of the decline in Singaporeâs unemployment rate.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 77 (2005)
Issue (Month): 1 (June)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Hiau Looi Kee & Hian Teck Hoon, 2004. "Trade, capital accumulation, and structural unemployment : An empirical study of the Singapore economy," Policy Research Working Paper Series 3272, The World Bank.
- Hiau Looi Kee & Hian Teck Hoon, 2004. "Trade, Capital Accumulation and Structural Unemployment: An Empirical Study of the Singapore Economy," Working Papers 06-2004, Singapore Management University, School of Economics, revised Mar 2004.
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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