The impact of the Globalization of Econiomic on Employment in Iran and some other developing countries

اقتصاد پولی مالی

Article 5, Volume 17, Issue 32, January 2011   

Document Type: پژوهشی

DOI: 10.22067/pm.v17i32.27269

Authors

Ebrahim Gorji^* ; Masoomeh Alipourian; Husain Sarmadi

Abstract

Sweeping changes have taken place in the world’s economy in recent decades, changes that have reshaped the structure of employment on a global scale. National economies are now more integrated into the global system more than any other time in the recent past. The volume of international trade and the magnitude of cross-border capital flows have reached historically high levels. Advances in communication and transport technologies have led to the establishment of complex international production networks, with developing countries producing an unprecedented level of manufactured exports within global supply chains. Fundamental shifts in economic policies have accompanied the process of globalization.
The purpose of this paper is the analysis of the relationship between economic globalization and employment in Iran, Turkey, Malaysia, Indonesia, Philippines, Egypt and Marco, from 1988 to 2004, with the approach of panel data and fixed effect method. The results show that the coefficient of Export and Import shares of GDP, as an index of economic globalization in these countries, is significant and positive. The coefficient of Foreign Investment is insignificant and positive. Production and High Technology Export share of Total Export have a direct relationship with employment. Moreover, the wages have negative effect on the employment. All of the coefficients are consistent with the prediction of the theoretical studies.

Keywords

The globalization of economic; employment; Labor market; developing countries