Politická ekonomie 2023, 71(3):342-365 | DOI: 10.18267/j.polek.1392

Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies

Semanur Soyyiğit ORCID...a, Seda Bayrakdar ORCID...b, Cüneyt Kiliç ORCID...c
a Department of Public Finance, Kırklareli University, Kırklareli, Türkiye
b Department of Economics, Kırıkkale University, Kırıkkale, Türkiye
c Department of Economics, Çanakkale Onsekiz Mart University, Çanakkale, Türkiye


The present study aims to indicate whether structural transformation has provided enhancement for the disadvantaged parts of society in terms of gender or whether it has been implemented at the expense of social inequalities in 10 BEM (Big Emerging Market) economies (Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Türkiye) in the period 1998–2019. The study also aims to understand the dynamics behind the connection between structural transformation and unemployment by comparing the results from each country. This paper also focuses on the effects of economic complexity on the breakdown of unemployment rates including female, male, youth female and youth male unemployment divisions. In the study, firstly, cross-sectional dependence is tested for all variables; secondly, the CADF test as a second-generation unit root test is applied; thirdly, the parameter constancy test is applied to each model, and then the models are estimated using the panel regression method with random coefficients. The study reveals a geographical distinction between the ten economies. Economic complexity significantly affects all types of unemployment in Poland, but it does not affect unemployment in Asian and African countries. The other result of the study is that even in Poland, the decreasing effect of ECI (Economic Complexity Index) on unemployment is different for women and men.

Keywords: Economic complexity, unemployment rate, export sophistication, structural transformation, panel data analysis, gender equality
JEL classification: E24, F16, L16

Received: July 12, 2022; Revised: February 8, 2023; Accepted: February 9, 2023; Prepublished online: May 12, 2023; Published: June 26, 2023  Show citation

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Soyyiğit, S., Bayrakdar, S., & Kiliç, C. (2023). Effect of Economic Complexity on Unemployment in Terms of Gender: Evidence from BEM Economies. Politická ekonomie, 71(3), 342-365. doi: 10.18267/j.polek.1392
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