The multidimensional impact of globalization on the unemployment rate at different levels at the East Asia-Pacific region
The East Asia-Pacific region is one of the most dynamic and fastest growing economic regions in the world. Most of the success of these countries is related to globalization, especially in the fields of international trade and finance. Meanwhile, the unemployment rate in this region always maintains at a low level compared to the global average rate. By using a dynamic panel data model, this study examines the impact of globalization on the unemployment rate in East Asia-Pacific countries multi-dimensionally at different levels. We find that, rather than economic aspects alone, globalization has a social impact on unemployment rates of countries in this region, and this does not follow the Heckscher–Ohlin theorem. After disaggregating this impact on several levels, the research outcomes showed that there is a significant difference in the sign and magnitude of the impact on economic sectors, and in the unemployment rates between national groups. Finally, we find no evidence of a relationship between globalization and unemployment in the long run, or in young workers.