Özet:
This study investigates the effects of trade liberalization and export diversification on
unemployment rate for a group of OECD countries for the period between 1991 and 2014. Using
several liberalization and export diversification indices as well as various control variables, the
results of the empirical analysis show that as countries engage more in international trade and
diversify their export baskets, unemployment rate decreases. Thus, it can be argued that OECD
countries should follow policies that are in favor of trade liberalization rather than protectionism.
Moreover, diversification of export baskets instead of specialization is of great importance in
decreasing the unemployment rate.