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Article
Publication date: 31 July 2023

Eduardo Loría and Raúl Antonio Tirado Cossío

The labor market responds in a differentiated manner during recessions and expansions, and it is of vital importance to know the magnitude asymmetries. The purpose of this paper…

131

Abstract

Purpose

The labor market responds in a differentiated manner during recessions and expansions, and it is of vital importance to know the magnitude asymmetries. The purpose of this paper is to evaluate the effects of the disinflationary monetary policy (2005Q1–2022Q4) through the sacrifice rate measured in terms of unemployment and rate of critical labor conditions (RCLC) with nonlinear auto regressive distributed lag (NLARDL; Shin et al., 2014), which allows to efficiently estimate asymmetric effects in short and long terms in the presence of variables of different integration orders.

Design/methodology/approach

The authors estimate an asymmetric accelerationist Phillips curve, augmented with labor precariousness for Mexico (2005Q1–2022Q4) following the NLARDL approach (Shin et al., 2014).

Findings

The authors prove that the increase in the unemployment gap has greater disinflationary effects than the RCLC in both the short and the long term; the expansionary phases of the business cycle, which reduce UGap, do not have inflationary effects either in the short or in the long run, but improvements in the labor market do, when RCLC is reduced; raising RCLC appears to have been the companies’ main survival strategy since 2015; and these asymmetries can generate a low unemployment trap with high and growing precariousness, with huge dynamic costs for well-being, economic growth, inequality and poverty.

Social implications

As labor precariousness grows, the implications are several both in the short and long run. In the short run, the most notorious example of the effects on workers has to do with unstable and insecure situations, that disrupt all their life planning options, and health issues. Bohle et al. (2004) found in the Organization for Economic Cooperation and Development countries that casual employees had less desirable and predictable working hours, greater work–life conflict and more associated health complaints than people with permanent jobs.

Originality/value

The approach includes the labor precariousness variable, which describes a new phenomenon in the labor market. Nowadays, workers are facing a new threat since firms are employing a new labor cost reduction strategy in which they do not lay off workers but rather paying them less, working them more hours, or reducing benefits. The asymmetries between the effects of precarity and unemployment can generate a poverty trap in the long run. This problem is, once again, of great relevance in the context of global high inflation.

Details

International Journal of Development Issues, vol. 22 no. 3
Type: Research Article
ISSN: 1446-8956

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Article
Publication date: 9 July 2020

Eduardo Loría

The paper aims to prove that between 1992 and 2016, people in poverty as a proportion of the total population has not been reduced. In particular, food poverty (FP) represented an…

371

Abstract

Purpose

The paper aims to prove that between 1992 and 2016, people in poverty as a proportion of the total population has not been reduced. In particular, food poverty (FP) represented an average of 22%, despite the fact that gross domestic product (GDP) per capita and GDP, social development expenditure and food programme expenditure (both as GDP proportion) grew by 0.96%, 1.9%, 2.7% and −17.4% on an annual average, respectively.

Design/methodology/approach

There are non-linear relationships between economic growth and food poverty expenditure to reduce poverty. Three econometric models were estimated as follows: a linear model [ordinary least squares (OLS)] that addresses the capability of the economic growth to reduce FP (which detects a structural change in 2007) and three models of regime change (Markov–Switching Regression) that prove the existence of two different regimes.

Findings

The author proved that economic growth has lost the capability to reduce poverty and that there are decreasing effects of expenditure in addressing poverty since 2007. These results point out that Mexico is in a poverty trap and suggests that for the economy as for life and even more in the case of social (public) policies, more is not necessarily better than less. Therefore, the author suggests that the resources allocated in response to poverty may well have generated perverse incentives that yielded the opposite results.

Originality/value

There is no official measure of the public expenditure for poverty. Therefore, an accurate series was built to estimate the government effort and do the econometrics that proves the main hypothesis. This is another contribution.

Details

International Journal of Development Issues, vol. 19 no. 3
Type: Research Article
ISSN: 1446-8956

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Book part
Publication date: 8 September 2022

Fabrizio Bientinesi

Starting from Gino Arias’s dictum on the uselessness of international trade theory for fascism, this contribution aims to demonstrate two main points. First, the free trade…

Abstract

Starting from Gino Arias’s dictum on the uselessness of international trade theory for fascism, this contribution aims to demonstrate two main points. First, the free trade attitude displayed by fascism immediately before and after the “March on Rome” clashed with its nationalist origins. The nationalist movement had supported a strong protectionist policy starting from a rejection of the main principles of marginalist theory. This explains why some issues raised by Pareto and Barone which could have been used as arguments in favor of protectionism were neglected. In turn, this impasse played a major role in the rejection of Mihail Manoilescu’s theory in the thirties. The second point concerns the possibility of some – at least relatively – free theoretical debate on international trade theory and policy. When the regime set itself a clear objective, like the reduction of trade to begin with, and then autarky, the scope for free discussion narrowed to the point of eventually closing. In this context, refusing to support the regime’s choices in economic policy meant resigning oneself to becoming an outcast. A situation offering one more tessera in the complex mosaic of relations between science and politics in authoritarian regimes.

Details

Research in the History of Economic Thought and Methodology: Including a Symposium on the Work of William J. Baumol: Heterodox Inspirations and Neoclassical Models
Type: Book
ISBN: 978-1-80382-708-7

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Article
Publication date: 11 November 2014

Eduardo Botti Abbade and Homero Dewes

Considering Brazil as a food producer with global prominence and the urgency for food security in some developing countries, the purpose of this paper is to investigate the…

337

Abstract

Purpose

Considering Brazil as a food producer with global prominence and the urgency for food security in some developing countries, the purpose of this paper is to investigate the exports of Brazilian dry-beans against food security of its buyers.

Design/methodology/approach

The investigation was conducted through analysis of data from official databases as FAO and WHO. This study elaborated dispersion maps crossing characteristics of the international buyers of Brazilian dry-beans considering their food security situations.

Findings

Brazil has a high domestic consumption of dry-beans, and exports are seen as a secondary activity. However, its production is superior to their domestic needs. Exports of Brazilian dry-beans are generally volatile and unstable. Evidence suggests that countries with serious problems of child and population’s malnutrition (e.g. India and Angola) buy more Brazilian dry-beans. However, their domestic consumptions are still low.

Research limitations/implications

This research based only on exports of dry-bean is faced as a significant limitation. Future studies adding other staple foods commonly consumed by economically disadvantaged populations may contribute to the investigation of the role of Brazil against the need for food security in developing countries and emerging economies.

Social implications

Social implications are focussed in the pursuit of malnutrition decrease in the populations of developing countries through the consumption of nutritionally rich and economically viable food, such as dry-beans.

Originality/value

The original value is based on the analysis of Brazilian dry-beans production and trades and its potential to contribute to nutritional safety and food security in developing countries.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 4 no. 2
Type: Research Article
ISSN: 2044-0839

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