Stergios A. Seretis and Persefoni V. Tsaliki
The purpose of this paper is to expand and further pursue the quest on value transfer in trade. The reason is that the assessment of the cause, the source and the mechanism of…
Abstract
Purpose
The purpose of this paper is to expand and further pursue the quest on value transfer in trade. The reason is that the assessment of the cause, the source and the mechanism of value transfer in trade may reveal the rationale upon which the observed and long‐lasting differences in sectoral, regional, and national development records may be justified.
Design/methodology/approach
The authors' analysis relies on the concept of free competition as developed by the classical economic tradition and particularly on the notions of regulating capital and dominant technique, whose interface forms the theoretical ground upon which can be confirmed the transfer of values between and within industries and by extension between and within regions and economies.
Findings
It is revealed that the cause of value transfers is capital competition, their source is differential productivity whereas the mechanism for these value transfers is national and international trade.
Practical implications
The analysis provides a theoretical ground upon which a new development policy may be designed which will pay attention to value transfers among sectors, regions and economies.
Originality/value
The paper argues that transfers of value are consummated from the less efficient sectors/economies characterized mostly by low technological achievements to more efficient ones.
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Nelly‐Eleni Pavlidou, Persefoni V. Tsaliki and Ioannis N. Vardalachakis
This paper aims to contribute to the open, theoretical debate upon the effects of technical change on the production and labor process.
Abstract
Purpose
This paper aims to contribute to the open, theoretical debate upon the effects of technical change on the production and labor process.
Design/methodology/approach
The “optimistic” approach, which connects the compensation mechanisms and human capital theory, is compared to the dynamic approach of the labor process. Recent Labor Force Survey data are used to identify the trends and characteristics of labor markets in G‐7 countries.
Findings
In all G‐7 countries, unemployment is present and deepening in the last two decades, whereas any employment growth observed is mainly associated with part‐time, temporary, low‐paid and vulnerable jobs. Moreover, any rise in employment rates refers rather exclusively to unskilful labor.
Practical implications
Neither the increase in effective demand (high growth rates), nor the relaxation of labor market rigidities could lead to a sufficient employment growth that would evade unemployment. In addition, the increased investment in human capital failed to upscale workers' position in the production process.
Originality/value
The value of this paper lies in its acknowledgement that an effectual policy agenda for labor‐related issues should break apart from conventional beliefs that the increase in flexibility of labor market, the abolishment of asymmetries in supply and demand of labor skills and the enhancement of economy's effective demand could cope and provide a solution to current labor market hazards.
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Unemployment is a systemic element of economic development which need not and “normally” does not give rise to full employment of labour regardless of the flexibility in labour…
Abstract
Purpose
Unemployment is a systemic element of economic development which need not and “normally” does not give rise to full employment of labour regardless of the flexibility in labour markets. This paper aims to address these issues.
Design/methodology/approach
The paper presents the common arguments and policy proposals to unemployment put forward by mainstream and Keynesian economics and it continues by exploring the dynamics of economic development and its effects on employment.
Findings
The normal utilization of the capital stock is not necessarily associated with any specific level of employment. As a result, even high levels of unemployment may be consistent with the normal (full) employment of capital, and the degree of flexibility in the labour market cannot affect the above result in any significant way.
Practical implications
The dynamics of capital accumulation continually tend to reproduce a stream of displaced workers. Moreover, the liberalization of the labour market in the effort to increase labour flexibility have contributed to the polarization of income distribution and increased the poverty rate.
Originality/value
The acknowledgment that the normal functioning of capitalism is consistent with a rising unemployment rate may provide policy makers with a solid analytical ground upon which more realistic and viable employment policies can be proposed in the effort on the one hand to reduce unemployment and on the other hand to alleviate its adverse effects on the unemployed and on social cohesion.
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Rasha Hashim Osman, Constantinos Alexiou and Persefoni Tsaliki
The purpose of this paper is to explore the alleged link between institutional quality and economic performance in 27 Sub‐Saharan Africa (SSA) countries during the period…
Abstract
Purpose
The purpose of this paper is to explore the alleged link between institutional quality and economic performance in 27 Sub‐Saharan Africa (SSA) countries during the period 1984‐2003.
Design/methodology/approach
Four institutions' quality indicators, namely government stability, corruption, ethnic tensions and socioeconomic conditions, along with other control and policy variables, are employed in a panel data analysis.
Findings
The institutional variables assume a key role in the process of economic development whereas the control variables display a limited effect. Thus, the “conventional variables” of economic theory may not be able to fully explain the SSA experience.
Research limitations/implications
Future research efforts should explore how the vast changes experienced by the countries in that region influenced their economic evolution during the last decades.
Practical implications
Policy makers should primarily focus on improving institutional quality, which is likely to positively affect economic performance in SSA countries.
Social implications
Improving institutional infrastructure (enhancing rule of law and quality regulation, improving contract enforcement, securing property rights and reducing uncertainty) play a key role in delivering long‐run economic development and social prosperity.
Originality/value
The paper analyzes the impact of institutional quality on economic performance using data from 27 SSA countries.