IDEAS home Printed from
   My bibliography  Save this paper

Does Higher Share In Total Trade Stimulate Regional Labor Market Outcomes? The Case Of Turkey


  • Serkan Degirmenci


  • Zeynep Yilmaz
  • Gulcin Elif Yucel


Standard trade theory relies on the assumption of long-run full-employment, thus implying that although trade can affect wage rates and change the sectoral distribution of employment, it has no effect on the overall level of employment. In the empirical literature, it is a controversial debate that trade openness is good for employment in the long-run. If so, the further question is about the poorer regions in the developing countries which are fully open to trade. Turkey is one of these countries experienced trade liberalization three decades ago. Although its regions' connection to markets is effective due to limited lack of access to key inputs and low transport costs, their shares in total trade and labor market outcomes strikingly vary depending on the density of local economic activities. While trade volumes and employment creation capacities of some regions are quite high, relevant indicators for some others are disappointing. The aim of this paper is to explore the relation between regional trade volumes and major labor market indicators. To this end, empirical analyses are designed to test the hypothesis that more regional trade volume leads to more employment opportunities and stimulates the job creation capacities of local labor markets. The data sets used in the analyses are from Turkish Statistical Institute, one being trade statistics by province which consists of export and import volume data for 81 provinces. The other set contains individual-based micro data from Household Labor Force Survey and both of these sets are at NUTS level 2, analyzing Turkey with 26 statistical regions. Time-interval for the analyses is from the year 2004 to 2008. Since the nature of labor market data set is cross-sectional and the dependent variable created is a dummy, the methodology used in the study is based on the probit regression. The preliminary results of the paper shows that higher the trade volumes of regions generally improve the indicators of local labor markets in Turkey.

Suggested Citation

  • Serkan Degirmenci & Zeynep Yilmaz & Gulcin Elif Yucel, 2011. "Does Higher Share In Total Trade Stimulate Regional Labor Market Outcomes? The Case Of Turkey," ERSA conference papers ersa11p1371, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p1371

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1371. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.