Empirical Links Between Global Value Chains, Trade, And Unemployment

2020

Full text Open access: Gold Metadata (CSL-JSON)
DOI 10.14254/1800-5845/2020.16-4.8
Data confidence 70 medium
How this score is calculated

It is built from checkable properties of the record itself: whether the article has a DOI, how many independent sources confirmed its data, whether the required fields are filled in, and how recent the latest confirmation is. Disagreement between sources and a missing identifier lower it. A value of 80 or above means the record was published without further checking; 60 to 79 means it is published at reduced confidence, with a manual check advisable. A record verified by an editor by hand is never pushed below 90 by a recalculation. This scores our data about the article, not the article itself.

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.Empirical results show that it is yet hard to come to a global consensus about a common set of determinants of unemployment in a cross-country aspect.Moreover, the influences of internal and external factors tend to vary substantially across the development phases and structural changes of countries.Overall findings keep the debate about jobless export, the job-carrying function of foreign direct investment, employment gain from trade and trade in employment at the center of the unemployment agenda of both developed and developing countries.The study concludes with some discussions and implications of the evidence.