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On the interaction between exports and labor market regulation: Evidence from the MENA countries

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  • Selwaness, Irène
  • Zaki, Chahir

Abstract

Using a panel of MENA countries, this paper aims to examine the interaction between exports performance and labor market regulations on employment levels. The theoretical predictions on this literature show that the effects of exports in any given country can be altered by the nature of labor market regulations. Previous studies showed that trade liberalization was more likely to have a positive impact on employment rates in countries with flexible labor markets and vice versa, mainly because of how the labor market adjustment process to trade openness occurs. Our main findings how that labor market rigidity reduces the positive impact of exports on employment. Indeed, rigid labor markets may limit the easiness of creating new jobs that satisfy the increased labor demand in expanding sectors when a country experience an increase in its exports.

Suggested Citation

  • Selwaness, Irène & Zaki, Chahir, 2019. "On the interaction between exports and labor market regulation: Evidence from the MENA countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 24-33.
    • Handle: RePEc:eee:quaeco:v:73:y:2019:i:c:p:24-33
    DOI: 10.1016/j.qref.2018.05.011
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    2. Nora Aboushady & Chahir Zaki, 2019. "Investment climate and Trade Margins in Egypt: Which Factors Do Matter?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2275-2301.
    3. Koffi Kpognon & Henri Atangana Ondoa & Mamadou Bah & Marie Fanny Messe, 2020. "Ouverture commerciale, institutions du marché du travail et emploi des jeunes en Afrique," African Development Review, African Development Bank, vol. 32(S1), pages 91-105, November.
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    More about this item

    Keywords

    Labor market rigidity; Exports; MENA;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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