The Role of Labor Productivity in the Evolution of Romanian Employment

摘要

Traditional Keynesian theory emphasizes the central role of demand-side factors in macroeconomic fluctuations, but real business cycle theory puts technology shocks as the main drivers of business cycles. The aim of this study is to determine the effect of labor productivity on Romanian employment. Our analysis is based on panel estimation considering 12 major activities in Romanian economy. The results obtained are more consistent with the Keynesian theory.