THE NEXUS AMONG EMPLOYMENT, PRODUCTIVITY AND TRADE OPENNESS: EVIDENCE FROM BRICS AND INDONESIA

Authors

Badri Narayan Rath, Indian Institute of Technology Hyderabad - India
Masagus M. Ridhwan, Bank Indonesia - IndonesiaFollow

Document Type

Article

Abstract

This paper investigates the nexus among employment, labor productivity and trade openness in Brazil, Russia, India, China, South Africa (BRICS), and Indonesia using annual data (1991–2018). The results suggest a long-run relationship among the variables but only in the agricultural sector of these economies. We also find a unidirectional causality running from employment to productivity in only the agricultural sector. Similarly, trade openness also Granger causes employment. Our final result indicates that trade openness positively influences labor productivity in the long-run. From a policy perspective, it is imperative for BRICS and Indonesia to target employment generation by promoting trade openness.

Recommended Citation

Rath, Badri Narayan and Ridhwan, Masagus M. (2020) "THE NEXUS AMONG EMPLOYMENT, PRODUCTIVITY AND TRADE OPENNESS: EVIDENCE FROM BRICS AND INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 23: No. 4, Article 4.
DOI: https://doi.org/10.21098/bemp.v23i4.1363
Available at: https://bulletin.bmeb-bi.org/bmeb/vol23/iss4/4

First Page

463

Last Page

484

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

India

Affiliation

Indian Institute of Technology Hyderabad