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Contemporary Issues with Multidisciplinary Perspectives on Social Science

Edited By Engin ÇAKIR and Yusuf KADERLİ

Social sciences are made up of science disciplines that research humanity, society, and the world with a human dimension, and therefore its domain of influence is also serious and wide. Naturally, the social scientist has the power to influence society with his/her research and writing. This book aims to add the contributions of academicians from different disciplines to the social sciences fields they specialize in the academic literature and to give an idea about new researches. The book contains scientific articles on business, economics, public finance, tourism, and international relations.

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The Relationship Between the Vertical Specialization of Exports and Employment: Burcu Hicyilmaz and Mesut Cakir

Burcu Hicyilmaz and Mesut Cakir

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Abstract In the globalization process, as well as the increasing trade of final goods and services, the intermediate goods trade used in the production of the goods subject to trade increased. So trade has become characterized by global value chains increasingly. It caused great changes in the production and trade process and required different calculations and approaches to analyze the structure and effects of international trade. The aim of this study is to investigate the effect of vertical specialization rate of exports of intermediate goods and services on employment in seven countries consisting of Turkey and the most important trade partners of Turkey which is Germany, England, France, Italy, USA, and Russia. The data of ten sectors for seven countries are used in the study and analysis is carried out for the five-year periods of 2000–2004, 2005–2009 and 2010–2014 with the Two-Stage OLS (2SLS) method. According to the results of analysis, while vertical specialization has no effect on employment in 2000–2004 period, it has a statistically significant and negative effect in 2005–2009 and 2010–2014 periods. This effect of the vertical specialization rate, which is the indicator of the backward participation in the global value chain, has shown that this new fact creates an employment-reducing structure in the countries discussed and also creates a process that shifts the employment potential towards foreign countries.

Keywords: Global Value Chains, Vertical Specialization, Employment, Two-Stage OLS

The developments in globalization and the increasingly intertwined structure...

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