The examine relationship between trade and employment

This paper investigates the relationship between trade and employment in the period 2005-2012 using Generalized Method of Moments (GMM) for 16 selected OECD countries. The results show that trade has a significant and positive effect on employment, so that an increase of 1 percent of its value, employment 0/05 percent increase. Also, one percent increase in employment with a time lag, manufacturing value added, real effective exchange rate, gross capital formation, respectively, 0/33, 0/05, 0/06, 0/4 and 0/2 % increase in employment the studied countries.

Trade, Employment, OECD countries, GMM.