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Empirical Links between Global Value Chains,Trade and Unemployment

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  • Mehmet Demiral
  • Ozge Demiral
  • Aizhan Khoich
  • Aigul Maidyrova

Abstract

This study purposes to explore the determinants of unemployment in 35 countries distinguished between 18 developed and 17 developing countries over 12 years covering 2005-2016. Unlike the majority of the relevant literature, the study integrates different aspects of internal and external predictors of unemployment focusing on global value chains (GVCs) involvement. The study employs a panel regression analysis to estimate the relationships of unemployment with economic growth, government expenditure, inflation, human capital, population, industrialization, trade openness, and foreign direct investment flows. To what extent countries involve in GVCs are measured by the foreign value-added share of gross exports and domestic valueadded share of gross imports.

Suggested Citation

  • Mehmet Demiral & Ozge Demiral & Aizhan Khoich & Aigul Maidyrova, 2020. "Empirical Links between Global Value Chains,Trade and Unemployment," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(4), pages 95-107.
    • Handle: RePEc:mje:mjejnl:v:16:y:2020:i:4:95-107
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    References listed on IDEAS

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