International Journal of Economics

Labor Market Flexibility and Unemployment: A Study of the United States

2024-04-02T01:05:42+03:00

Purpose: The aim of the study was to investigate the labor market flexibility and unemployment: a study of the United States

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study on Labor Market Flexibility and Unemployment in the United States found that while flexibility can foster job creation, it also exacerbates structural unemployment. Certain groups, like minorities and low-skilled workers, are disproportionately affected. Additionally, technological advancements and globalization reshape the labor market. Labor market institutions play a crucial role in mediating flexibility's impact. Overall, nuanced policy interventions are needed to address unemployment challenges.

Unique Contribution to Theory, Practice and Policy: Structural unemployment theory, dual labor market theory & institutional theory of labor markets may be used to anchor future studies on the labor market flexibility and unemployment: a study of the United States. Practical recommendations could include fostering a supportive environment for entrepreneurship and innovation, enhancing access to lifelong learning and skill development opportunities, and implementing targeted measures to support vulnerable groups in the labor market. From a policy perspective, the study should advocate for evidence-based policymaking that prioritizes the promotion of inclusive growth and social cohesion.

Gender Gap in Agricultural Productivity: A Case Study of Smallholder Farmers in Busia County Kenya

2024-04-29T09:51:40+03:00

Purpose: The study aimed at determining the gender gap in agricultural productivity: A case of Smallholder Farmers in Busia Kenya.

Methodology: The research employed a correlational research approach, utilizing multistage sampling to choose 384 participants from seven sub-counties within the study region. Data collection utilized structured questionnaires, and analysis was conducted on quantitative data using descriptive statistics and inferential methods with STATA version 17. The findings were presented using tables and figures.

Findings: The study revealed a statistically significant gender gap in agricultural productivity in Busia-County at the expense of female farmers. Specifically in Teso North, gender gap was -0.43 with a p-value of 0.049, in Teso south, gender gap was -0.63 with a p-value of 0.040, in Bunyala, gender gap was -0.67 with a p-value of 0.035, in Butula, gender gap was -0.47 with a p-value of 0.002, in Matayos, gender gap was -0.72 with a p-value of 0.041, in Nambale, gender gap was -0.64 with a p-value of 0.041 and In Samia, gender gap was -0.67 with a p-value of 0.036. It was concluded that female farmers are less productive than male farmers in Busia County Kenya.

Unique Contribution to Theory, Practice and Policy: Drawing from production theory, and social feminist theory, the study investigated the relationship between productivity and gender among smallholder farmers. To address the gender gap in agricultural productivity, it is recommended that policymakers, agricultural extension services, and other stakeholders advocate for gender-inclusive agricultural development initiatives in the area.

Exchange Rate Volatility and Export Performance: Case of Malaysia

2024-04-02T00:52:55+03:00

Purpose: The aim of the study was to investigate the exchange rate volatility and export performance: case of Malaysia

Findings: Exchange rate volatility negatively impacts Malaysia's exports, reducing both volumes and revenues. Stable exchange rates are crucial for export competitiveness and attracting foreign investment. Effective hedging and exchange rate policies are recommended to mitigate volatility's adverse effects. Macroeconomic stability and structural reforms are essential for Malaysia's resilience to external shocks. Managing exchange rate volatility is key for sustaining Malaysia's export-led growth and fostering economic development.

Unique Contribution to Theory, Practice and Policy: Portfolio balance theory, j-curve theory & competitive devaluation theory may be used to anchor future studies on the exchange rate volatility and export performance: case of Malaysia. Malaysia can provide practical insights into how exporters can effectively integrate risk management strategies into their operations to mitigate the adverse effects of exchange rate volatility. Malaysia can serve as a model for proactive policy responses to exchange rate volatility, offering lessons and strategies that can be adapted by policymakers in other emerging economies.

Firm-Level Determinants of Export Performance in Kenya’s Manufacturing Sector

2024-05-03T09:50:18+03:00

Purpose: This study aimed at investigating the firm-level determinants of export performance (export propensity and export intensity) in Kenya’s manufacturing sector using firm-level panel data obtained from the World Bank Enterprise Surveys for the periods 2007, 2013 and 2018.

Methodology: The study adopted a quantitative non-experimental research design. The Heckman Two-Stage estimation procedure was employed to jointly establish the firm-level determinants of export propensity and export intensity in Kenya’s manufacturing sector.

Findings: Based on the estimation results, firm-level total factor productivity, firm size, human capital, cost of material, electricity cost and foreign ownership had positive and significant effects on firms’ export propensity while labor productivity negatively influenced export propensity. Firm age, capital intensity and research did not have significant effects on export propensity. On the other hand, export intensity was positively influenced by firm-level total factor productivity, foreign ownership, firm size, firm age, human capital and research. Labor productivity had a negative effect on firms’ export intensity. Whereas the effect of energy cost on export intensity was weakly significant at 10 percent level of significance, there was no significant effect of cost of material on export intensity.

Unique Contribution to Theory, Practice and Policy: Employing the new ‘new’ trade theory, the study tested the self-selection hypothesis by analyzing the determinants of export propensity and intensity. According to the self-selection hypothesis, one of the key positive determinants of export propensity and export intensity is firm-level total factor productivity. The study findings validated the self-selection hypothesis since the results revealed firm-level total factor productivity as a positive and significant determinant of both export propensity and export intensity for Kenya’s manufacturing firms. According to the study's conclusions, the government and enterprises must focus on policies that increase firm-level total factor productivity, firm size, human capital, and research in order to improve firms' export performance.