How Does The International Trade Affects to Unemployment Rate? : The Case of Turkey

The sectoral transformations in the production processes caused to unemployment rates increase both countries and worldwide while increasing knowledge and technology was increasing to the world trade volume. The transformation in production volume and production sectoral distribution significantly affected the volume of foreign trade between countries. In this context, The aim of this paper is to examine the impact of Turkey’s foreign trade on the unemployment rate for the 1923-2017 period. The unemployment rates and rate of exports meeting imports are the variables used in the model. Maki and FMOLS cointegration tests were used to analyze the relationships between variables. According to the results of this study, there is a negative relationship between the rate of exports meeting imports and the unemployment rate. If the rate of exports meeting imports 1% increase the unemployment rate reduces by 1.22%.

Keywords: Cointegration Test, Foreign Trade, Unemployment Rate, Jel Codes: F16, C01, C22

PhD Faculty Member Pınar KOÇ, Gümüşhane University

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