Dynamics of the Effects of Deregulations in the Commodity and Labor Markets in MENA Countries: A Panel VAR Approach

Mohamadi, Teimour; Azizkhani, Fatemeh; Taee, Hasan; Bahrami, Javid

doi:10.22054/ijer.2019.11112

Authors

¹ Associate Professor, Economics Allameh Tabataba`i University, Tehran, Iran

² Ph.D. Student at Allameh Tabataba`i University, Tehran, Iran

³ Associate Professor, Economics, Allameh Tabataba'i University, Tehran, Iran

https://doi.org/10.22054/ijer.2019.11112

Abstract

The results of many studies show that rigid regulations on product and labor markets are considered as a key factor in weakening the employment conditions and have led to high unemployment rates. Given the complicated regulations in the countries of the Middle East and North Africa (MENA), studying the great dynamics of deregulation can give useful guidelines for lawmakers and policy makers. The aim of this paper is to study the effect of deregulations of commodity and labor markets on the growth and the unemployment rate in 20 MENA countries using GMM method and Panel VAR approach during the period 2005 – 2017. The results of this study show that deregulation in product and labor markets in the short run will reduce economic growth, increase unemployment and lead to recession. But in the long run, it will increase economic growth and reduce unemployment. The labor market reforms, as opposed to product market reforms, do not lead to major dynamics in economic growth. For policy-making in MENA countries, deregulation in the product market has priority over the labor market, since it has a stronger impact on the wavelength and durability of the effects.

Keywords

References

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Iranian Journal of Economic Research

Dynamics of the Effects of Deregulations in the Commodity and Labor Markets in MENA Countries: A Panel VAR Approach

References

References

اسلاملوییان، کریم و جوکار، زهرا(1392). مصرف انرژی و رشد اقتصادی در کشورهای خاورمیانه و شمال آفریقا: یک آزمون علیت چند متغیری. فصلنامه پژوهشهای اقتصادی ایران، شماره 57.

Volume 24, Issue 80 - Serial Number 80
October 2019
Pages 37-67

Dynamics of the Effects of Deregulations in the Commodity and Labor Markets in MENA Countries: A Panel VAR Approach

References

References

اسلاملوییان، کریم و جوکار، زهرا(1392). مصرف انرژی و رشد اقتصادی در کشورهای خاورمیانه و شمال آفریقا: یک آزمون علیت چند متغیری. فصلنامه پژوهشهای اقتصادی ایران، شماره 57.

Volume 24, Issue 80 - Serial Number 80October 2019Pages 37-67

Volume 24, Issue 80 - Serial Number 80
October 2019
Pages 37-67