Pub Date : 2021-05-01DOI: 10.1177/09749101211004405
Shuyu Wu, Qingzhong Pan
Emerging markets are important for global economic growth. In the post-crisis era, they played a vital role in global economic recovery. However, frequent financial turmoil in emerging markets over the years exposed flaws with the economic structures and financial markets of these countries. This articledescribes the overall economic conditions and structures of emerging markets and analyzes the driving forces of economic growth. It is established that emerging markets, especially of Asian countries, contributed significantly to the global economic growth over the last few decades. The main drivers of economic growth vary among the emerging markets. While some countries rely on energy resources, others have their economic growth driven by cheap labor and high savings. Meanwhile, emerging markets with rapid and stable economic growth over a long period of time have some characteristics in common. For example, they all carefully manage the opening-up processes. The articlealso investigates the major problems that emerging economies encounter in economic development. For example, the overreliance on the global market makes some countries vulnerable to external shocks; the fragile domestic financial market leads to frequent financial crises; the improper economic structure makes some countries excessively dependent on foreign markets; and some countries are stuck in economic stagnation.
{"title":"Economic Growth in Emerging Market Countries","authors":"Shuyu Wu, Qingzhong Pan","doi":"10.1177/09749101211004405","DOIUrl":"https://doi.org/10.1177/09749101211004405","url":null,"abstract":"Emerging markets are important for global economic growth. In the post-crisis era, they played a vital role in global economic recovery. However, frequent financial turmoil in emerging markets over the years exposed flaws with the economic structures and financial markets of these countries. This articledescribes the overall economic conditions and structures of emerging markets and analyzes the driving forces of economic growth. It is established that emerging markets, especially of Asian countries, contributed significantly to the global economic growth over the last few decades. The main drivers of economic growth vary among the emerging markets. While some countries rely on energy resources, others have their economic growth driven by cheap labor and high savings. Meanwhile, emerging markets with rapid and stable economic growth over a long period of time have some characteristics in common. For example, they all carefully manage the opening-up processes. The articlealso investigates the major problems that emerging economies encounter in economic development. For example, the overreliance on the global market makes some countries vulnerable to external shocks; the fragile domestic financial market leads to frequent financial crises; the improper economic structure makes some countries excessively dependent on foreign markets; and some countries are stuck in economic stagnation.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/09749101211004405","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"65374978","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-05-01DOI: 10.1177/09749101211004381
Qian Liu
The business environment of a country or region is an important measure of its economic soft power and an indicator of the strength of its governance. A good business environment attracts foreign investment, which emerging market countries in structural transformation are most concerned about. This article calculates and ranks the business environment index of the 30 emerging market countries (E30). It assesses the trend of the overall business environment and the contributing factors and conducts an empirical analysis of how business environment in these countries affects their economic development. The study shows that the business environment of the E30 countries is closely related to their economic development, albeit with prominent regional differences. Additionally, the quality of business environment is closely related to the strength of government regulation. In the last 5 years, the business environment of the E30 countries has improved in general, and closed the gap with the OECD countries, with Asian countries demonstrating the most conspicuous improvement. Empirical results show that the overall score of the business environment has a significantly positive effect on economic development. Lastly, based on a systematic analysis of the business environment of the E30 countries, the article summarizes the findings and makes projections about future development.
{"title":"Business Environment in Emerging Market Countries","authors":"Qian Liu","doi":"10.1177/09749101211004381","DOIUrl":"https://doi.org/10.1177/09749101211004381","url":null,"abstract":"The business environment of a country or region is an important measure of its economic soft power and an indicator of the strength of its governance. A good business environment attracts foreign investment, which emerging market countries in structural transformation are most concerned about. This article calculates and ranks the business environment index of the 30 emerging market countries (E30). It assesses the trend of the overall business environment and the contributing factors and conducts an empirical analysis of how business environment in these countries affects their economic development. The study shows that the business environment of the E30 countries is closely related to their economic development, albeit with prominent regional differences. Additionally, the quality of business environment is closely related to the strength of government regulation. In the last 5 years, the business environment of the E30 countries has improved in general, and closed the gap with the OECD countries, with Asian countries demonstrating the most conspicuous improvement. Empirical results show that the overall score of the business environment has a significantly positive effect on economic development. Lastly, based on a systematic analysis of the business environment of the E30 countries, the article summarizes the findings and makes projections about future development.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/09749101211004381","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43101827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-20DOI: 10.1177/09749101211004355
Biliang Hu, Xing Tang, Lin Yin, Qian Liu
The twenty-first century saw the emerging market countries rise as a cluster, becoming a major force driving the global economic growth and playing an increasingly important role in global governance. The existing definition of emerging market countries is vague and quite one-sided, far from capturing the reality. Based on historical experiences and actual circumstances of developing countries and the basic theories of development economics, this article builds a comprehensive index system comprising the five dimensions of nation-state size, institutional environment, economic growth, socio-economic structure, and development impetus to study 30 countries selected from among the 183 countries (regions) around the world. This provides a new analysis framework and theoretical support for in-depth study of the emerging markets.
{"title":"Emerging Markets Redefined: Comprehensive Measurement and Future Prospects","authors":"Biliang Hu, Xing Tang, Lin Yin, Qian Liu","doi":"10.1177/09749101211004355","DOIUrl":"https://doi.org/10.1177/09749101211004355","url":null,"abstract":"The twenty-first century saw the emerging market countries rise as a cluster, becoming a major force driving the global economic growth and playing an increasingly important role in global governance. The existing definition of emerging market countries is vague and quite one-sided, far from capturing the reality. Based on historical experiences and actual circumstances of developing countries and the basic theories of development economics, this article builds a comprehensive index system comprising the five dimensions of nation-state size, institutional environment, economic growth, socio-economic structure, and development impetus to study 30 countries selected from among the 183 countries (regions) around the world. This provides a new analysis framework and theoretical support for in-depth study of the emerging markets.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/09749101211004355","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43289057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-15DOI: 10.1177/09749101211004338
Qingjie Liu
This article examines the emerging market countries on their national strategic resources—farmland, fresh water, and fossil energy—which are analyzed from the perspectives of distribution, status of development, and existing issues. The study draws the following conclusions: Emerging market countries have abundant farmland resources yet inadequate per capita resources; because of extensive operation on farmland, grain yield is low, which threatens food security; emerging market countries are saliently short in water resources per capita and face imbalances and low productivity over water use, and their agriculture practices are water-intensive; emerging market countries are growing as global centers for production, consumption, and trade of fossil energy, with a long, coal-dominated consumption structure that has a growing momentum, which subjects them to a greater pressure to reduce carbon emissions; and emerging market countries are inefficient in the use of energy, though they have huge potential for energy conservation and consumption reduction.
{"title":"Resource Endowments in Emerging Market Countries","authors":"Qingjie Liu","doi":"10.1177/09749101211004338","DOIUrl":"https://doi.org/10.1177/09749101211004338","url":null,"abstract":"This article examines the emerging market countries on their national strategic resources—farmland, fresh water, and fossil energy—which are analyzed from the perspectives of distribution, status of development, and existing issues. The study draws the following conclusions: Emerging market countries have abundant farmland resources yet inadequate per capita resources; because of extensive operation on farmland, grain yield is low, which threatens food security; emerging market countries are saliently short in water resources per capita and face imbalances and low productivity over water use, and their agriculture practices are water-intensive; emerging market countries are growing as global centers for production, consumption, and trade of fossil energy, with a long, coal-dominated consumption structure that has a growing momentum, which subjects them to a greater pressure to reduce carbon emissions; and emerging market countries are inefficient in the use of energy, though they have huge potential for energy conservation and consumption reduction.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/09749101211004338","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48815216","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-13DOI: 10.1177/09749101211004614
Kunling Zhang
This article analyzes the structural transformation in 30 emerging market countries (E30) on the dimensions of industry, trade, and urbanization. It finds that first, in the agricultural sector, E30 have contributed greatly to the increase of the global agricultural productivity and the transfer of labor force from the agricultural sector to industry or the service sector. However, these countries still feature a high percentage of agricultural employment, which means there is vast room for shifting the agricultural labor force. Second, in the industrial sector, E30 have made remarkable contributions to the world’s industrial development but have also displayed a trend of premature “deindustrialization.” Third, the service sector has picked up speed and gradually turned into a new driver of economic development in E30. Against this backdrop, E30 face the major challenge of how to cope with the premature deindustrialization and smoothly shift the economic growth engine from the industrial sector to the service sector. Fourth, E30 have become an important force in the world trade, with their trade structure switching from simple, primary, low-value-added goods to sophisticated, high-grade, and high-value-added goods and services. However, some emerging market countries are more susceptible to the impacts of the anti-globalization trend because of their high reliance on foreign trade and improper trade structure. Therefore, how to diversify the economy and enhance its economic resilience holds the key to the sustainable economic development of E30. Fifth, E30 have contributed greatly to world urbanization. As urbanization relies more on the service sector than on the industrial sector, it is vital to properly strike a balance between industrialization and urbanization, and between industrialization and service sector development.
{"title":"Economic Structural Transformation in Emerging Market Countries","authors":"Kunling Zhang","doi":"10.1177/09749101211004614","DOIUrl":"https://doi.org/10.1177/09749101211004614","url":null,"abstract":"This article analyzes the structural transformation in 30 emerging market countries (E30) on the dimensions of industry, trade, and urbanization. It finds that first, in the agricultural sector, E30 have contributed greatly to the increase of the global agricultural productivity and the transfer of labor force from the agricultural sector to industry or the service sector. However, these countries still feature a high percentage of agricultural employment, which means there is vast room for shifting the agricultural labor force. Second, in the industrial sector, E30 have made remarkable contributions to the world’s industrial development but have also displayed a trend of premature “deindustrialization.” Third, the service sector has picked up speed and gradually turned into a new driver of economic development in E30. Against this backdrop, E30 face the major challenge of how to cope with the premature deindustrialization and smoothly shift the economic growth engine from the industrial sector to the service sector. Fourth, E30 have become an important force in the world trade, with their trade structure switching from simple, primary, low-value-added goods to sophisticated, high-grade, and high-value-added goods and services. However, some emerging market countries are more susceptible to the impacts of the anti-globalization trend because of their high reliance on foreign trade and improper trade structure. Therefore, how to diversify the economy and enhance its economic resilience holds the key to the sustainable economic development of E30. Fifth, E30 have contributed greatly to world urbanization. As urbanization relies more on the service sector than on the industrial sector, it is vital to properly strike a balance between industrialization and urbanization, and between industrialization and service sector development.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/09749101211004614","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48395993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.1177/0974910121989462
David Dole, S. Lewis-Workman, Dennis D. Trinidad, Xianbin Yao
The aims of this article are twofold. First, from a historical perspective, it examines the recipient-to-donor transition of five Asian aid donors, namely Japan, Korea, China, India, and Thailand. Specifically, it examines the evolution of their foreign aid programs and practices. Second, it analyzes the effects of Asian aid donors on the international aid regime. We argue that the mix of economic and security goals, which motivated Asian donors to develop their initial economic cooperation programs, have persisted over time. This explains why Asian aid donors have allotted a disproportionate share of their assistance to neighboring countries and their use of foreign aid as a key tool of their commercial and diplomatic policies. Moreover, we contend that the rise and experience of Asian aid donors have created a new dynamic to donor–recipient partnerships and development cooperation like new approaches and modalities. Key findings of this study add to the growing literature on emerging donors and aid effectiveness debate.
{"title":"The Rise of Asian Aid Donors: Recipient-to-Donor Transition and Implications for International Aid Regime","authors":"David Dole, S. Lewis-Workman, Dennis D. Trinidad, Xianbin Yao","doi":"10.1177/0974910121989462","DOIUrl":"https://doi.org/10.1177/0974910121989462","url":null,"abstract":"The aims of this article are twofold. First, from a historical perspective, it examines the recipient-to-donor transition of five Asian aid donors, namely Japan, Korea, China, India, and Thailand. Specifically, it examines the evolution of their foreign aid programs and practices. Second, it analyzes the effects of Asian aid donors on the international aid regime. We argue that the mix of economic and security goals, which motivated Asian donors to develop their initial economic cooperation programs, have persisted over time. This explains why Asian aid donors have allotted a disproportionate share of their assistance to neighboring countries and their use of foreign aid as a key tool of their commercial and diplomatic policies. Moreover, we contend that the rise and experience of Asian aid donors have created a new dynamic to donor–recipient partnerships and development cooperation like new approaches and modalities. Key findings of this study add to the growing literature on emerging donors and aid effectiveness debate.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910121989462","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42226671","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.1177/0974910120974798
H. Ahmed, N. Mazlan
This study examines the symmetric and/or asymmetric effects of changes in the interest rate on exchange rate of the ASEAN countries. It further aims to compare these linkages by using a dataset consisting of 48–68 quarterly data items, ranging over the period 2002–2017, of the ASEAN countries. Using both the linear autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) approaches, the findings indicate that these effects vary from one country to another. We observe that changes in interest rates have short-run symmetric effects on the exchange rates, which also hold in the long run for five ASEAN countries, namely, Cambodia, Malaysia, Thailand, Vietnam, and Singapore. On the other hand, changes in interest rates have asymmetric (negative) effects on the exchange rates, which also hold in the long run for seven ASEAN countries, namely, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
{"title":"The Impact of Interest Rate on Exchange Rate Within ASEAN Countries: Evidence from Linear and Nonlinear ARDL Frameworks","authors":"H. Ahmed, N. Mazlan","doi":"10.1177/0974910120974798","DOIUrl":"https://doi.org/10.1177/0974910120974798","url":null,"abstract":"This study examines the symmetric and/or asymmetric effects of changes in the interest rate on exchange rate of the ASEAN countries. It further aims to compare these linkages by using a dataset consisting of 48–68 quarterly data items, ranging over the period 2002–2017, of the ASEAN countries. Using both the linear autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) approaches, the findings indicate that these effects vary from one country to another. We observe that changes in interest rates have short-run symmetric effects on the exchange rates, which also hold in the long run for five ASEAN countries, namely, Cambodia, Malaysia, Thailand, Vietnam, and Singapore. On the other hand, changes in interest rates have asymmetric (negative) effects on the exchange rates, which also hold in the long run for seven ASEAN countries, namely, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120974798","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44066277","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.1177/0974910121989458
Manik Kumar, Sweety Pandey
This article elucidates the wage differential between formal and informal workers across different sectors, gender, occupation, and industry by using the 61st (2004–2005) and 68th (2011–2012) Rounds of National Sample Survey Office (NSSO) unit-level data. The study emphasizes two things: first, identifying the existence of the absolute wage gap between formal and informal workers and, second, finding the intensity of discrimination in wage between formal and informal workers. The vast body of literature available on this issue identifies gender, caste, religion, and region as the factors causing wage discrimination. This literature makes a shift from these traditional concepts by explaining the importance of job contract as a basis of wage discrimination. This study utilizes the percentage relative gap (PGR) to work out the absolute wage gap between the two types of workers (formal and informal) and thereafter decomposes it to arrive at the source of the wage gap. The study applies the threefold Blinder–Oaxaca (B–O) decomposition method, which categorizes the total wage gap into three parts. The dependent variable chosen for the equation is the natural logarithm of daily wage. While the wage gap between formal and informal workers did not significantly fall during the study period, the results, on the other hand, indicate that the component of discrimination is larger than the component of endowment. This explains the discrimination perpetrated against informal workers in the Indian labor market. Tackling such discrimination necessitates implementation of more proactive policies for achieving wage equality in India.
{"title":"Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey","authors":"Manik Kumar, Sweety Pandey","doi":"10.1177/0974910121989458","DOIUrl":"https://doi.org/10.1177/0974910121989458","url":null,"abstract":"This article elucidates the wage differential between formal and informal workers across different sectors, gender, occupation, and industry by using the 61st (2004–2005) and 68th (2011–2012) Rounds of National Sample Survey Office (NSSO) unit-level data. The study emphasizes two things: first, identifying the existence of the absolute wage gap between formal and informal workers and, second, finding the intensity of discrimination in wage between formal and informal workers. The vast body of literature available on this issue identifies gender, caste, religion, and region as the factors causing wage discrimination. This literature makes a shift from these traditional concepts by explaining the importance of job contract as a basis of wage discrimination. This study utilizes the percentage relative gap (PGR) to work out the absolute wage gap between the two types of workers (formal and informal) and thereafter decomposes it to arrive at the source of the wage gap. The study applies the threefold Blinder–Oaxaca (B–O) decomposition method, which categorizes the total wage gap into three parts. The dependent variable chosen for the equation is the natural logarithm of daily wage. While the wage gap between formal and informal workers did not significantly fall during the study period, the results, on the other hand, indicate that the component of discrimination is larger than the component of endowment. This explains the discrimination perpetrated against informal workers in the Indian labor market. Tackling such discrimination necessitates implementation of more proactive policies for achieving wage equality in India.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910121989458","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42895004","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.1177/0974910120974790
B. Iqbal
{"title":"Munim K. Barai, Bangladesh’s Economic and Social Progress: From a Basket Case to a Development Model","authors":"B. Iqbal","doi":"10.1177/0974910120974790","DOIUrl":"https://doi.org/10.1177/0974910120974790","url":null,"abstract":"","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910120974790","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45097158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-01-01DOI: 10.1177/0974910121989461
Ademola Obafemi Young
The debate on the nature of the relationship between cohort size and unemployment rate has been widely studied and generated a substantial body of literature in labor economics discourse. However, an in-depth reading of this literature suggests that, besides the fact that findings are mixed and do not provide conclusive evidences, one hardly ever comes across studies exclusively on African countries. Likewise, generalized studies across countries employing pooled data seem to dominate the literature. In light of these, the current study examines the nature of the said relationship, over the period 1970–2019, in Nigeria in a multivariate and dynamic framework. Employing Bounds testing procedure, the article finds that both the short-run and long-run impacts of cohort size on overall unemployment rate are positive and statistically significant. This suggests that aggregate unemployment rate tends to be higher when many young people supply labor. In view of these findings, the article recommends that government should collaborate with private sector to develop and implement functional microcredit schemes. Such schemes should be flexibly structured to avert institutional bottlenecks and enhance accountability and transparency in their management.
{"title":"Cohort Size and Unemployment Rate: New Insights from Nigeria","authors":"Ademola Obafemi Young","doi":"10.1177/0974910121989461","DOIUrl":"https://doi.org/10.1177/0974910121989461","url":null,"abstract":"The debate on the nature of the relationship between cohort size and unemployment rate has been widely studied and generated a substantial body of literature in labor economics discourse. However, an in-depth reading of this literature suggests that, besides the fact that findings are mixed and do not provide conclusive evidences, one hardly ever comes across studies exclusively on African countries. Likewise, generalized studies across countries employing pooled data seem to dominate the literature. In light of these, the current study examines the nature of the said relationship, over the period 1970–2019, in Nigeria in a multivariate and dynamic framework. Employing Bounds testing procedure, the article finds that both the short-run and long-run impacts of cohort size on overall unemployment rate are positive and statistically significant. This suggests that aggregate unemployment rate tends to be higher when many young people supply labor. In view of these findings, the article recommends that government should collaborate with private sector to develop and implement functional microcredit schemes. Such schemes should be flexibly structured to avert institutional bottlenecks and enhance accountability and transparency in their management.","PeriodicalId":37512,"journal":{"name":"Global Journal of Emerging Market Economies","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1177/0974910121989461","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45826255","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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