Abstract
Much of the recent debate on the labor market issues of developing countries has revolved around the interaction of the labor market with stabilization and structural adjustment policies, introduced mostly in conjunction with the IMF and the World Bank. In particular, there is a growing body of literature on the interaction between structural adjustment policies and employment performance in these countries.According to the dominant view in this literature, the favorable employment effects of these policies stem basically from the shift of industrial trade strategy from state-led import substitution towards market-based export orientation.
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