Does Globalisation Help Alleviate Unemployment? Evidence From Türkiye: A Fourier ADL Approach

Akyıldız İ. E.

Hacettepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, cilt.44, sa.3, ss.598-613, 2026 (TRDizin)

Özet

This study investigates the impact of globalisation on unemployment in Türkiye by analysing its interaction with foreign direct investment (FDI), per capita income, and human capital. Using annual data from 1984 to 2022, the paper applies a combination of advanced time-series techniques including the fractional frequency Fourier ADF unit root test, Fourier ADL cointegration, FMOLS estimation, and fractional frequency Toda-Yamamoto causality analysis. The findings indicate a long-run equilibrium relationship among the variables, with globalisation, human capital, FDI, and income significantly reducing unemployment. Human capital has the strongest effect, followed by globalisation and income. Causality tests reveal bidirectional relationships between unemployment and globalisation, FDI, and human capital, indicating mutual feedback. No causality is found between income and unemployment. These results suggest that globalisation can contribute to employment growth when complemented by quality investment and human capital development. The study recommends integrated policies prioritising education, labour-intensive FDI, and inclusive globalisation strategies to achieve sustainable job creation.