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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

Suggested Citation

  • Özlem Onaran, 2007. "Jobless growth in the Central and Eastern European Countries: A country specific panel data analysis for the manufacturing industry," Department of Economics Working Papers wuwp103, Vienna University of Economics and Business, Department of Economics.
  • Handle: RePEc:wiw:wiwwuw:wuwp103 Note: PDF Document
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    Cited by:

    1. repec:eco:journ2:2017-05-19 is not listed on IDEAS
    2. Leitão, Nuno Carlos, 2012. "The impact of trade on economic growth," MPRA Paper 37425, University Library of Munich, Germany.
    3. Jarko Fidrmuc & Reiner Martin, 2011. "FDI, Trade and Growth in CESEE Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 70-89.
    4. repec:onb:oenbwp:y:2009:i:1:b:1 is not listed on IDEAS
    5. Jarko Fidrmuc & Reiner Martin, 2011. "Capital Inflows, Exports and Growth in the CESEE Region," Chapters,in: Post-Crisis Growth and Integration in Europe, chapter 21 Edward Elgar Publishing.
    6. repec:rej:journl:v:16:y:2013:i:47:p:17-28 is not listed on IDEAS

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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