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Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies

Author

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  • Semanur Soyyiğit
  • Seda Bayrakdar
  • Cüneyt Kiliç

Abstract

The present study aims to indicate whether structural transformation has provided enhancement for the disadvantaged parts of society in terms of gender or whether it has been implemented at the expense of social inequalities in 10 BEM (Big Emerging Market) economies (Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Türkiye) in the period 1998-2019. The study also aims to understand the dynamics behind the connection between structural transformation and unemployment by comparing the results from each country. This paper also focuses on the effects of economic complexity on the breakdown of unemployment rates including female, male, youth female and youth male unemployment divisions. In the study, firstly, cross-sectional dependence is tested for all variables; secondly, the CADF test as a second-generation unit root test is applied; thirdly, the parameter constancy test is applied to each model, and then the models are estimated using the panel regression method with random coefficients. The study reveals a geographical distinction between the ten economies. Economic complexity significantly affects all types of unemployment in Poland, but it does not affect unemployment in Asian and African countries. The other result of the study is that even in Poland, the decreasing effect of ECI (Economic Complexity Index) on unemployment is different for women and men.

Suggested Citation

  • Semanur Soyyiğit & Seda Bayrakdar & Cüneyt Kiliç, 2023. "Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies," Politická ekonomie, Prague University of Economics and Business, vol. 2023(3), pages 342-365.
    • Handle: RePEc:prg:jnlpol:v:2023:y:2023:i:3:id:1392:p:342-365
    DOI: 10.18267/j.polek.1392
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    References listed on IDEAS

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    Cited by:

    1. Ekene ThankGod Emeka & Simplice A. Asongu & Yolande E. Ngoungou, 2024. "Gender economic inclusion, governance institutions and economic complexity in Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 24/003, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).

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    More about this item

    Keywords

    Economic complexity; unemployment rate; export sophistication; structural transformation; panel data analysis; gender equality;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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