Bosnia and Herzegovina: Staff Report for the First Review Under the Stand-By Arrangement PDF (Adobe DRM) download by Adam Bennett

Bosnia and Herzegovina: Staff Report for the First Review Under the Stand-By Arrangement

INTERNATIONAL MONETARY FUND
Publication date: July 2005
ISBN: 9781455207770
Digital Book format: PDF (Adobe DRM)

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This paper gauges the potential effects on employment of rebalancing China's exportoriented growth model toward domestic demand, particularly private consumption. Shifting to a private consumption-led growth likely means more demand for existing and new services as well as reorienting the production of tradable goods toward domestic markets. In China's case, this would also imply moving a large number of less skilled labor from the tradable sector to the nontradable sector. The paper shows that while rebalancing China's growth toward a domestic-demand-led economy would likely raise aggregate employment and employment opportunities in the longer term, there could be employment losses in the short run as the economy moves away from the tradable sector toward the nontradable sector. Mitigating these costs will require active labor market policies to cushion the employment impact in the transition, particularly in meeting the skills gap of associated with this transition.
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