Services Policy Reform and Manufacturing Employment: Evidence from Transition Economies

34 Pages Posted: 12 Dec 2016

See all articles by Matteo Fiorini

Matteo Fiorini

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Clément Malgouyres

Paris School of Economics (PSE); Institut des politiques publiques (PSE)

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Date Written: December 2016

Abstract

Policy reforms targeting the services sectors influence the process of structural transformation and economic development. This paper used sector-level panel data for 24 transition economies for the 1990-2012 period to analyze the impacts of services policy reforms on employment in downstream manufacturing sectors. We find that negative effects on manufacturing employment are mitigated or disappear for countries with better economic governance and higher levels of human capital. The decline in manufacturing employment is observed only in the first decade of transition. The estimated negative effect of policy reforms is of a contemporaneous nature; it does not persist along the lag structure.

Keywords: economic reform, employment, service-sector policies, structural transformation, transition economies

JEL Classification: F16, F66, J23, P21

Suggested Citation

Fiorini, Matteo and Hoekman, Bernard and Malgouyres, Clément, Services Policy Reform and Manufacturing Employment: Evidence from Transition Economies (December 2016). CEPR Discussion Paper No. DP11694, Available at SSRN: https://ssrn.com/abstract=2884077

Matteo Fiorini (Contact Author)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Bernard Hoekman

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Clément Malgouyres

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Institut des politiques publiques (PSE) ( email )

48 boulevard Jourdan
Paris, 75014
France

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