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The globalization, creating numerous opportunities, has caused some important
concerns, in particular, for employment and inequality. In this paper, the relation of
globalization and employment, for eighteen countries in 1980-2000, has been analyzed by coefficient of correlation and t- test. The ratios of trade to GDP, and
FDI to GDP, and the share of manufactures in exports measure the global economic
integration- or globalization. On the bases of the correlation analysis for each country, the coefficient sign has been different. In simultaneous study, the
coefficient sign of correlation has been negative in all cases and significant for the
share of manufactures in exports. Also, the correlation between unemployment rate and the pace of globalization has been as expected and significant
The empirical analysis indicates that active participation in world economy
global economic integration" can effectively reduce unemployment rate provided
that entry of FDI accelerates the share of manufactures in exports. And this certainly
requires macroeconomic stability and the improvement of productivity.
JEL Classification: F02.