Eurasian Journal of Business and Economics

25-44

Authors: Satyendra Nath CHAKRABARTTY, Deepankar SINHA

The composition and share of export items from a country change over time. Individual exporting companies take firm-level actions to keep up their market share. A relative (to the point of reference) and comparative (compared to other exportable goods) advantage index for an export item can aid decision-making at the country and company levels. Present literature shows less reference to the existence of such an index. The popular Balassa’s revealed comparative advantage (B-RCA) index measures the comparative strength of a product at any given period. However, this method and its variants are time stationary and not directly applicable for sectors, i.e., groups of commodities with the same first four digits of the HS Code. Sector-level RCA aids in identifying the country's comparative advantage over the sector over time. For a given set of products, the paper uses many partner countries and a manyproduct trade approach. This paper suggests two indices to reflect the dynamic RCA. It suggests calculating the ratio of the Balassa index for each product for the current period and reference period – the relative revealed comparative advantage (RRCA); proposes geometric aggregation of these ratios to get a composite RCA (CRCA) index for a country.

63-86

Authors: Hami SAKA, Mehmet ORHAN

This paper attempts to investigate the effect of technology on employment based on skill groups in developing countries using data from 23 countries between 1990 and 2019. We use the macroeconomic framework to split employment in developing countries into high-skilled and low-skilled and examine how these two groups are affected by progress in technology. Pedroni’s (1999, 2004) and Kao’s (1999) cointegration methods reveal the statistically significant relationship among variables in the long run. Coefficients estimated in cointegration highlight that technology is among the factors that increase unemployment in developing countries. In addition, our baseline models document that inflation and real interest rates have a positive impact on unemployment. Finally, both high-skilled and lowskilled employment in developing countries are negatively affected by technology, and the negative impact is greater on low-skill employment.