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Services Policy Reform and Manufacturing Employment: Evidence from Transition Economies

Author

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  • Fiorini, Matteo
  • Hoekman, Bernard
  • Malgouyres, Clément

Abstract

Policy reforms targeting the services sectors influence the process of structural transformation and economic development. This paper used sector-level panel data for 24 transition economies for the 1990-2012 period to analyze the impacts of services policy reforms on employment in downstream manufacturing sectors. We find that negative effects on manufacturing employment are mitigated or disappear for countries with better economic governance and higher levels of human capital. The decline in manufacturing employment is observed only in the first decade of transition. The estimated negative effect of policy reforms is of a contemporaneous nature; it does not persist along the lag structure.

Suggested Citation

  • Fiorini, Matteo & Hoekman, Bernard & Malgouyres, Clément, 2016. "Services Policy Reform and Manufacturing Employment: Evidence from Transition Economies," CEPR Discussion Papers 11694, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11694
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    References listed on IDEAS

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    More about this item

    Keywords

    economic reform; employment; service-sector policies; structural transformation; transition economies;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform

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