PurposeThis study aims to investigate the effect of technological progress on employment in Egypt in the period 1990–2019.Design/methodology/approachThe study applies a vector autoregressive (VAR) model and uses patents as a measure of innovation outputs.FindingsThe study concludes, as shown by impulse response functions, that a shock to patents affects employment negatively in Egypt throughout the period, as expected.Originality/valueSince there is still no decisive answer about the impact of technological progress and innovation on employment, this study attempts to contribute to this debate. Most existing studies focus on how technological change affects workers with different job types and skill levels, covering manufacturing and service sectors, mainly in developed countries, but there is still little research on its effect on employment at the macrolevel and in developing countries.
Purpose This paper aims to investigate the relationship between global economic fluctuations and human development through four transmission channels (foreign direct investment (FDI), official development aid (ODA), remittances and export earnings) in Egypt as an open developing economy, in the period 1990–2015. Design/methodology/approach The paper uses a vector autoregressive model, which implies examining the impulse response functions and variance decompositions. Findings The results indicate that human development is negatively affected by global economic fluctuations through the four channels, namely, ODA, FDI, export earnings and remittances. In addition, the most effective transmission channels are FDI in the short run and export earnings in the long run. Originality/value While a large body of literature addresses the direct impact of business cycles and economic shocks on human development, only some studies focus on the indirect impact. The contribution is to identify the indirect impact of global economic fluctuations on human development in a developing economy, considering four transmission channels and to determine the most important of these channels. Moreover, using the human development index is an addition in this paper as most previous literature depends on other human development indicators such as children’s health, employment and schooling.
The objective of this study is to investigate the impact of corruption on human development in Egypt, both in the short and long run, for the period from 1995 to 2018 using the Autoregressive Distributed Lag Model (ARDL). There is a broad amount of the literature that examines the effects of corruption on economic development, but less of the literature, especially empirical, focuses on corruption's effect on human development. Some studies investigate its influences on poverty, others examine those influences on education and/or health but this study assesses its impact on human development expressed by the Human Development Index with its three dimensions. This study contributes to the literature on investigating the determining factors of human development by adding corruption as one of the institutional variables influencing human development besides economic factors. The empirical analysis shows that corruption has a negative and significant effect on human development in both the short and long run, meaning that increased corruption weakens human development. As for GDP per capita, it has a significant and positive effect on human development in both the short and long run. While the government expenditure's effect is insignificant in the short run, it becomes significantly positive in the long run. With regard to urbanization, it affects human development negatively in the short run, and its effect becomes positive -but insignificant-in the long run. The study concludes that policymakers can combat corruption by focusing on causes not on effects.Contribution/ Originality: This study contributes to the existing empirical literature which investigates the effects of corruption, by focusing on corruption's impact on human development (HDI with its three dimensions) in Egypt. It also contributes to the literature by adding corruption as one of the institutional variables influencing human development besides economic factors.
The main objective of this paper is to investigate the impact of education inequality on the growth-volatility relationship for 12 MENA countries over the period 1970-2010. The study measured inequality of education by calculating an Education Gini Index, then estimate volatility using GARCH model. In order to achieve the main objective of this study, two different econometric techniques have been used-Generalized Method of Moments and the Pooled Mean Group-ARDL estimator. Then we compared the results of the two techniques. The empirical analysis shows that education inequality affects growth negatively. While the volatility has a positive impact on growth, its interaction with education inequality has a negative impact. These results suggest that when policymakers decide to increase investment in education, even during economic downturns, they should take into account the equal distribution of educational services.
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