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How the macroeconomic environment affects human resource development


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  • Van Adams, Arvil
  • Goldfarb, Robert
  • Kelly, Terence


Do inward-focused development strategies reduce competition in factor markets and incentives for more efficient skills development? Do outward-focused development strategies improve them? The authors compared vocational education and training systems in six developing countries in the 1980s. They found that an outward orientation encourages more efficient development of human resources. Protectionist trade regimes that shelter producers from global competition produce price distortions in domestic capital and labor markets that affect the efficient use of resources in skills development. Structural adjustment programs that address these distortions expand incentives for private training and for more efficient use of public resources in skills development.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 828.

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Date of creation: 31 Jan 1992
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Handle: RePEc:wbk:wbrwps:828

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Keywords: ICT Policy and Strategies; Environmental Economics&Policies; Economic Theory&Research; Health Economics&Finance; Banks&Banking Reform;


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  1. Adams, Arvil V. & Schwartz, Antoine, 1988. "Vocational education and economic environments : conflict or convergence?," Policy Research Working Paper Series 70, The World Bank.
  2. Rajapatirana, Sarath, 1988. "Foreign trade and economic development: Sri Lanka's experience," World Development, Elsevier, Elsevier, vol. 16(10), pages 1143-1157, October.
  3. Balassa, Bela, 1988. "The interaction of factor and product market distortions in developing countries," World Development, Elsevier, Elsevier, vol. 16(4), pages 449-463, April.
  4. Norma A. Tan, 1987. "Incentives and Protection Policies in Relation to Comparative Advantage and Labor-Intensity in Philippine Manufacturing: An Evaluation," UP School of Economics Discussion Papers, University of the Philippines School of Economics 198702, University of the Philippines School of Economics.
  5. Krueger, Anne O, 1990. "Asian Trade and Growth Lessons," American Economic Review, American Economic Association, American Economic Association, vol. 80(2), pages 108-12, May.
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