We argue that the labour market policy in Belarus leads to underdevelopment of the country’s financial market, thus creating barriers for companies in getting capital for further investments.
In a breaking 2015 study by CASE Belarus team, analysis of extensive statistics indicates that underdeveloped financial market and declining return on investment in Belarus is largely due to over-employment, as well as the government’s populist policy to increase average wages in Belarus.
Please see our analytical longread (in Russian only, download pdf) to read the results of the econometric analysis of relationship between development of capital and labour market in Belarus. The study provides specific policy recommendations for financial sector development and labour market reforms in Belarus as of 2015.
