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Jobless growth in the Central and Eastern European Countries: A country specific panel data analysis for the manufacturing industry

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  • Özlem Onaran

    ()
    (Department of Economics, Vienna University of Economics & B.A.)

Abstract

This paper estimates a labor demand equation based on the panel data of manufacturing industry in the Central and Eastern European Countries (the Czech Republic, Hungary, Poland, Slovakia, Slovenia, Lithuania, Bulgaria, and Romania) in order to test the effect of domestic factors (wages and output) and international factors (exports, imports, and FDI) on employment during the era of post -transition recovery. The findings indicate that employment does not respond to wages in more than half of the cases. The output elasticity of labor demand is mostly positive, but low, with a number of cases where employment is completely de-linked from output. An impressive speed of integration to the European economic sphere through FDI and international trade has not prevented job losses in the manufacturing industry. While there are very few cases of positive effects, insignificant effects of trade and FDI dominate the findings with some evidence of negative effects as well

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Paper provided by Vienna University of Economics, Department of Economics in its series Department of Economics Working Papers with number wuwp103.

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Date of creation: Mar 2007
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Handle: RePEc:wiw:wiwwuw:wuwp103

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  1. János Kornai, 1994. "Highway and Byways: Studies on Reform and Postcommunist Transition," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262111985, December.
  2. Reinert, Erik S. & Kattel, Rainer, 2004. "The Qualitative Shift in European Integration: Towards permanent wage pressures and a ‘Latin-Americanization’ of Europe?," MPRA Paper 47909, University Library of Munich, Germany.
  3. Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 57, July.
  4. Boeri, Tito & Garibaldi, Pietro, 2006. "Are labour markets in the new member states sufficiently flexible for EMU?," Journal of Banking & Finance, Elsevier, Elsevier, vol. 30(5), pages 1393-1407, May.
  5. Robert Stehrer, 2004. "Can Trade Explain the Sector Bias of Skill-biased Technical Change?," wiiw Working Papers, The Vienna Institute for International Economic Studies, wiiw 30, The Vienna Institute for International Economic Studies, wiiw.
  6. Lehmann, Hartmut, 1995. "Active labor market policies in the OECD and in selected transition economies," Policy Research Working Paper Series 1502, The World Bank.
  7. Horton, Susan & Kanbur, Ravi & Mazumdar, Dipak, 1991. "Labor markets in an era of adjustment : an overview," Policy Research Working Paper Series 694, The World Bank.
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Cited by:
  1. Jarko Fidrmuc & Reiner Martin, 2011. "FDI, Trade and Growth in CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 70-89,112-1.
  2. repec:rej:journl:v:16:y:2013:i:47:p:17-28 is not listed on IDEAS
  3. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS
  4. Leitão, Nuno Carlos, 2012. "The impact of trade on economic growth," MPRA Paper 37425, University Library of Munich, Germany.

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