THE RELATIONSHIP BETWEEN TRADE OPENNESS AND THE LABOR MARKET (TÜRKİYE CASE STUDY)
Keywords:
Trade Openness, Employment, ARDL, TürkiyeAbstract
With the removal of trade barriers between countries in the late 1970s, liberalization of trade began. This rapidly increasing trade liberalization has brought about concerns about its impact on the labor market. Although the positive effects of trade liberalization on economic growth have been proven, this has caused concerns in developed and developing countries.
Therefore, this study investigates the relationship between trade openness and employment rate in Turkey from 1990 to 2022. The study employs the Autoregressive Distributed Lag (ARDL) technique. The results of the study indicate that trade openness has a significant negative impact on the employment rate in Turkey. This suggests that trade openness has not generated sufficient employment opportunities to absorb the growing labor force in Turkey, contributing to the decline in employment rates.
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