The Effects of Globalization on Employment: Bounds Test Approach in Turkey Sample

Abstract

The increase of economic, political, social, and cultural relationships between the countries with globalization has resulted in a shift from industrial society to information society. With knowledge-intensive work being replaced by labor-intensive work in the process of globalization, economic and social structural transformation has occurred. Globalization affects the countries economically and socially. One of these affected areas is employment. In this study, ARDL (Autoregressive Distributed lag) bound test approach was analyzed using Turkey’s data in 1970-2011 to find about the effects of globalization on employment. As a result of analysis, it was found out that the series were in a co-integration correlation. The findings showed that globalization affected employment positively in the long term, and the deviations in the series in the short term are removed in the long term.