THE IMPACT OF GLOBALIZATION AND TECHNOLOGICAL DEVELOPMENT ON FEMALE UNEMPLOYMENT: EVIDENCE FROM TURKEY

Abstract

ABSTRACTThe developing and globalizing world has made it a must to catch technological development and to be integrated into the global world to be able to reach sustainable growth and development. However, these are said to be adversely impressive on the unemployment in a tangible part of the literature. In this paper, the Johansen cointegration technique is used to examine the causal relationship between female unemployment, technological development, and globalization for Turkey during the 1990-2019 period. In order to test for causality in the context that a cointegration relationship has been detected, a vector error correction model (VECM) is used. Results of the analysis demonstrate that women unemployment, technological development, globalization, and inflation which is the control variable for Turkey are cointegrated by one cointegrating vector and that female unemployment is stimulated by technological development at a huge rate while it is negatively affected by globalization and inflation. The robustness of the cointegration analysis and short-run relationship between the variables are analyzed by the Vector Error Correction Model and error correction term. Hence, it is shown by the study that technological development in Turkey increases female unemployment while international trade/globalization lessens it.Keywords:Female unemployment, Technological development, Globalization, VECM, Johansen cointegration