Effects of Explosions in Hard Rocks

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The renewed interest in the role of diversification in development was probably triggered by the influential contribution by Imbs and Wacziarg (2003). They find that countries typically diversify their production str ucture during the early development process but then begin to specialize again once they reach a certain level (this was confirmed by Koren and Tenreyro, 2007). Cadot et al. (2007) and Klinger and Lederman (2006) find that the same holds true for the structure of exporting, but the turning point after which countries start to specialize again probably is at a higher level of development for exports than for domestic production.

It also simulates the impact on households and the repercussions in ter ms of incomeinduced consumption effects. The Leontief multiplier model has been widely used in the literature on trade and employment, but has well-known limitations, in particular that it is linear and non-dynamic. As a result, positive dynamic effects through economic growth or negative dynamic effects through labour displacing technical change cannot be assessed using this model. However, given this study's focus on short-term effects, these limitations are less relevant for the exercise conducted in the context of the ILO crisis work.

A. a. a. a. a. a. a. a. a. a. 2 2007 2003 2007 2006 2006 Data year 48 T R A D E A N D E M P LOY M E N T I N T H E G LO B A L C R I S I S • J A N S E N A N D V O N U E X K ULL THE IMP AC T O F T H E C R I S I S AT T H E C O U N T R Y LEVEL 49 unemployment benefits, people cannot afford to be unemployed and thus have to revert to precarious forms of employment if they are unable to find a formal job. The information on status in employment is not available for India and Liberia in the KILM database, but it is likely that the relatively low unemployment rates reflect similar underlying patterns.

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