The impact of foreign trade on the labor market: Evidence from Turkish economy

This paper analyzes the impact of foreign trade on labor market by using the random coefficient panel data analysis and the quarterly data of 17 sectors in manufacturing industry of turkey according to 2 digit level of nace rev. 1.1 and isic rev.3 classification between 1994 and 2010. data are seasonally adjusted by tramo/seats method before data evaluation,since the data used are quarterly. the results showed that production had positive impact on labor whereas it had negative impact on wages. furthermore it was shown that imports and exports have a significant and positive impact on labor. thus the results of the study point out that foreign trade positively affect the economy. sector specific estimations,which is the one of distinctive aspects of this study,derived from the random coefficient panel data analysis,are also discussed in detailed.