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Effects Of International Trade On Employment: A Panel Data Analysis

Author

Listed:
  • Ekrem Gul
  • Ahmet Kamacı

    (Sakarya University
    Artvin Coruh University)

Abstract

The relationship between international trade and employment is one of the issues which have been studied for a long time. The number of the studies about this topic has risen significantly since 1980. In Turkey this problematic has been studied intensively since 2000’s. The general theory suggests that ‘export increases employment’. A number of empirical studies in question confirm this theory while a good deal of empirical studies have opposite results. In this study the influence of international trade on employment is examined by the panel data analysis for the developing and developed countries (respectively in the periods of 1993-2010; 1980-2010). IPS and LLC Panel Unit Root Tests are employed in order to test for stagnation of data. Afterwards Pedroni Cointegration Test and Granger Causality Test are used. In the conclusion of the analysis it has been reached that there is no influences of unemployment on import and export in both developed and developing countries. On the other hand a causality relationship from import and export to unemployment has been found in both developed and developing countries.

Suggested Citation

  • Ekrem Gul & Ahmet Kamacı, 2012. "Effects Of International Trade On Employment: A Panel Data Analysis," Anadolu University Journal of Social Sciences, Anadolu University, vol. 12(4), pages 23-32, December.
    • Handle: RePEc:and:journl:v:12:y:2012:i:4:p:23-32
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    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2012_4/2012-04-02.pdf
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    Citations

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    Cited by:

    1. Muhammad Salah Uddin & Zobayer Ahmed & Mahadi Hasan, 2022. "The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(74), pages 177-200, July.

    More about this item

    Keywords

    International Trade; Employment; Panel Data; Unit Root Test; Cointegration Test; Granger Causality Test;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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