The Impact of Trade Openness on Labor Force Participation Rate

Madanizadeh, Seyed Ali; Pilvar, Hanifa

doi:10.2139/ssrn.2937927

Cited by 2 publications

(4 citation statements)

References 33 publications

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“…Thus, the outcome of this study rejected the null hypothesis that trade openness had insignificant impact on unemployment rate in Nigeria. The finding of this study is in line with Heckscher-Ohlin theory, Madanizadeh and Pilvar (2019), Martes (2018), Awad-Warrad (2018) and Kreickemeier (2006). The result of this study is in contrast with Famode, Makalamba and Ngbolua (2020), Mohler, Weder and Wyss (2018) and Jaewon (2011).…”

Section: Conclusion and Policy Recommendationsupporting

confidence: 90%

“…Employing the vector error correction estimation technique, the study observed that trade openness insignificantly influenced unemployment rate. Madanizadeh and Pilvar (2019) examined the relationship between trade openness and labour force participation rate for a panel of 93 countries over the period 1990 -2012. Using fixed effect panel estimation technique, the study observed that trade openness significantly promote labour force participation rate.…”

Section: Literature Reviewmentioning

confidence: 99%

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Trade Openness and Unemployment Rate in Nigeria

Nwosa

Anderu

Adegboyo

et al. 2020

OJBE

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This study examines the relationship between trade openness and unemployment rate in Nigeria from 1980 to 2018. The study utilized the auto-regressive distributed lag (ARDL) technique and the result of the study shows that trade openness had negative and significant impact on unemployment rate in Nigeria. The implication of this result is that trade openness provides employment opportunities, which reduces the unemployment rate in Nigeria. Thus, the study concludes that trade openness is a significant determinant of unemployment in Nigeria. The study recommends the need for conscious economic policies that would promote foreign private investment, capable of enhancing aggregate volume of investment in the country and contribute to employment generation in the Nigeria. Finally, government needs to explore new marketing areas for foreign investors which would also contribute to employment generation.

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Section: Conclusion and Policy Recommendationsupporting

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Trade Openness and Unemployment Rate in Nigeria

Nwosa

Anderu

Adegboyo

et al. 2020

OJBE

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“…This is because the impact of unemployment is proven to be discouraging on FLFPR (Mincer, 1962;Tansel, 2002). Additionally, trade openness may affect the agents' incentives to enter or to exit the labour market, and this will lead to changes in the unemployment rate as well (Madanizadeh & Pilvar, 2017). v it represents educational attainment.…”

Section: The Panel Threshold Regression Modelmentioning

confidence: 99%

“…First, we distinguish the different contributions of exports, imports and total trade volume to FLFPR so that targeted policies can be applied to promote active women in the labour market. Furthermore, some previous literature argued that the relationship is either positive or negative; however, the link among these variables may be influenced by external factors and an endogeneity problem (Bloom, Canning, Fink, & Finlay, 2009;Gaddis & Pieters, 2012;Madanizadeh & Pilvar, 2017;Tam, 2011)). This paper expands the understanding of the nexus between trade openness and FLFPR based on the enormous development of trade and finds a non-linear correlation.…”

Section: Introductionmentioning

confidence: 99%

Enhance or depress? The effect of trade on active females in the labour market

Tao

et al. 2019

Economic Research-Ekonomska Istraživanja

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The objective of this study is to provide evidence for the existence of threshold effects in trade openness, which affects the female labour force participation rate (FLFPR) in Asian countries. The authors employ the proportion of export, import and total trade volume to gross domestic product to denote export and import dependency and trade openness, respectively. The panel threshold regression results indicate that there exists an optimal value in the correlation between trade openness and FLFPR below which an increase in trade openness will enhance the FLFPR; an adverse relationship exists when trade openness exceeds the threshold value. This relationship is attributed to the trade-off between the cost reduction effect and the technology channel. Furthermore, the authors further categorise trade openness into export and import dependency. The findings reveal that export dependency also has a single threshold effect on FLFPR, while import dependency exerts a negative effect on FLFPR regardless of threshold effect. Therefore, the government could promote female participation in the labour force by regulating the export policy.

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The Impact of Trade Openness on Labor Force Participation Rate

Cited by 2 publications

References 33 publications

Trade Openness and Unemployment Rate in Nigeria

Trade Openness and Unemployment Rate in Nigeria

Enhance or depress? The effect of trade on active females in the labour market

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