The Impact of Exports on Employment: A Structural Break Cointegration Analysis for Fragile Five Countries
Chapter from the book: Nas, Ş. (ed.) 2025. Foreign Trade and Macroeconomic Indicators Current Debates.

Tuğba Konuk

Synopsis

In a globalizing world, economic growth and development can be associated with countries foreign trade performance. In this context, exports are not only a source of income but also draw attention with their effects on employment. Understanding the effects of exports on employment has an important role in the formulation of sustainable development policies. Exports can be defined as the sale of goods and services produced by a country in international markets. This process provides foreign exchange inflows to the national economy and creates employment by increasing production activities. Especially in developing countries, export-oriented growth strategies are seen as an important tool for reducing unemployment and increasing economic welfare. The impact of exports on employment is generally analyzed through two main mechanisms. Direct effects are manifested through the increase in the labor force employed in export-oriented sectors, while indirect effects arise through the increase in demand for production and services in other sectors. The aim of this study is to investigate the effect of exports on employment for the Fragile Five countries by using panel cointegration analysis using 1994-2023 annual data. According to the findings, it is concluded that the effect of exports on employment is positive and statistically significant across the panel.

How to cite this book

Konuk, T. (2025). The Impact of Exports on Employment: A Structural Break Cointegration Analysis for Fragile Five Countries. In: Nas, Ş. (ed.), Foreign Trade and Macroeconomic Indicators Current Debates. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub677.c2830

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Published

March 24, 2025

DOI