Title Labor and product market reforms and external imbalances [electronic resource] : evidence from advanced economies / by Romain Duval [and two others].
Imprint [Washington, D.C.] : International Monetary Fund, 2021.©2021
Author Duval, Romain. author.
International Monetary Fund. issuing body.
Date 01-01-2021
Physical description 1 online resource (31 pages).
text
online resource
Series IMF working paper ; no. 21/54
IMF working paper ; no. 21/54.
Item WEB (Copy 1) INTRANET 1271804-1001 ONLINE
URL Available from internal network: http://err.parl.net/client/en_GB/search/asset/84436/0
Major subject Labour market
Goods (Economics)
Current account
Minor subject Economic models
Overseas item
Statistics
Notes "February 2021"
Includes bibliographical references.
ISBN 9781513570747
Abstract We explore the impact of major labor and product market reforms on current account dynamics using a new "narrative" database of major changes in employment protection for regular workers and product market regulation for non-manufacturing industries covering 26 advanced economies over the past four decades. Our main finding is that product market deregulation is associated with a weakening of the current account, while labor market deregulation is associated with an improvement. These effects are transitory and driven by both saving and investment responses. Labor and product market reforms both have a more positive impact on the current account balance when implemented under weak macroeconomic conditions. Our results are broadly consistent with predictions from recent DSGE models with endogenous producer entry and labor market frictions.
LCN 1271804
Item ID 1271804-1001
Database Library Catalogue