Abstract:Existing studies on the relationship between international trade and manufacturing employment often use a mean regression approach and focus mainly on developed countries. Few studies have applied a quantile regression approach to examine this relationship in developing countries. To fill the gap, this study considers, for the first time, the impact of rising international trade on employment in a developing country, Vietnam. Using an unbalanced panel dataset for the 2010~2015 period, we find a positive linkag… Show more
“…ECM results revealed a positive relationship between exports and female employment. Similarly, Ha and Tran (2017), investigated the relationship between the number of employees of the firms operating in manufacturing and manufacturing via the panel data method for the period 2010-2015. The results showed that exports affected employment positively.…”
This study examines the impact of export on regional employment in Turkey. To this end, using the annual export and employment figures of Regional Level 2 (Sub-regions) in Turkey for the 2005-2016 period, the study reveals that regional export in Turkey affected the regional employment rate positively. That is, an increase in regional export activity will lead to an increase in regional employment. This finding indicates that developing policies that will help promote the incentives in regional export rate correspondingly results in the employment rate. It appears that one of the leading problems in developing countries which have limited resources like Turkey is to see the gravity of the significance of the incentive policies that will promote employment.
“…ECM results revealed a positive relationship between exports and female employment. Similarly, Ha and Tran (2017), investigated the relationship between the number of employees of the firms operating in manufacturing and manufacturing via the panel data method for the period 2010-2015. The results showed that exports affected employment positively.…”
This study examines the impact of export on regional employment in Turkey. To this end, using the annual export and employment figures of Regional Level 2 (Sub-regions) in Turkey for the 2005-2016 period, the study reveals that regional export in Turkey affected the regional employment rate positively. That is, an increase in regional export activity will lead to an increase in regional employment. This finding indicates that developing policies that will help promote the incentives in regional export rate correspondingly results in the employment rate. It appears that one of the leading problems in developing countries which have limited resources like Turkey is to see the gravity of the significance of the incentive policies that will promote employment.
“…The quantile estimator also provides a richer characterisation of the data, allowing us to study the effect of the quality of public governance on the entire distribution of household welfare, not merely its conditional mean (Koenker & Hallock, ). In addition, a quantile regression estimator is more robust to non‐normal errors and outliers, whereas a linear regression estimator can suffer from inefficiency if the errors are highly abnormal (Ha & Tran, ; Koenker, ).…”
This study investigated the role of provincial governance in the growth of per capita income of Vietnamese households, using a balanced panel data set for the period 2012–2014. Although we found no evidence for the influence of provincial governance when a linear fixed‐effect regression estimator was used, the results from a fixed‐effect quantile regression estimator revealed that provincial governance has a positive effect on all groups (but not the poorest) and that the effect tends to be greater for better‐off households. In addition, we found that wage employment plays a larger role in the income growth of poorer households, whereas returns on education are greater for richer households. The findings suggest that a mean regression approach that looks only a t the role of explanatory variables on mean household welfare, and does not consider differences in the distribution of household welfare, may miss some heterogeneity that is of interest to policymakers.
Key Practitioner Message:
• Using a quantile regression approach has allowed the current study to provide new insight into the role of household‐related factors in household welfare. • Finding shows that good governance tends to provide greater benefits to richer households than to other groups in the population.
“…Recent studies include for example, Djankov and Ramalho (), Aydiner‐Avsar and Onaran (), Hollweg et al . (), Gozgor (), Ha and Tran (), Fugazza et al . ().…”
Section: Empirical Modelmentioning
confidence: 99%
“…Many studies have been performed on the macroeconomic determinants of employment, specifically in developing countries. Recent studies include for example, Djankov and Ramalho (2009), Aydiner-Avsar and Onaran (2010), Hollweg et al (2016), Gozgor (2017), Ha and Tran (2017), Fugazza et al (2017). To examine the impact of AfT on employment in recipient countries, we draw on many insights from these studies and postulate the following model:…”
Section: Empirical Modelmentioning
confidence: 99%
“…() have used an international panel dataset to provide evidence that structural reforms, of which trade liberalization, lead to positive labour market outcomes, including employment rate. Ha and Tran () have provided empirical evidence that for Vietnam, international trade has influenced negatively employment for firms in the low employment percentile but positively employment for firms in the high employment percentile.…”
This article examines the employment impact of Aid for Trade (AfT) flows to recipient countries. The analysis has used an unbalanced panel dataset comprising 126 countries, of which 42 Least developed countries (LDCs) over the period 2002–15. Based on the two‐step system Generalized Methods of Moments approach, the empirical analysis shows that over the full sample, AfT has exerted a positive and significant effect on total (male and female) employment share, as well as on female employment share, but no significant effect on male employment share. However, these effects are not the same in LDC economies versus non‐LDC economies.
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