The Implication Of Trade On Employment: Evidence From Central Asia

This paper seeks to investigate the relationship between trade and employment in Central Asian territory which determined the experiences and prospective developments in the labor market among the region.The Central Asian economies have gone through massive structural transformation due to various and consistent trade policy reforms which made it possible for the changes and development in employment patterns.Trade has been of assistance and necessitated for the regional growth and employment fluctuations throughout the past 20 years.In this case,it is predominantly observed that employment has responded much in both formal sector and informal sector as due to massive trade structural reforms by the Central Asian governments.This poses considerable challenges in determining appropriate impact of trade on the employment patterns which was answered in this study.Among countries included in this Central Asian study are Kazakhstan,Tajikistan,Kyrgyzstan,Turkmenistan and Uzbekistan.Their dependence in trading network has grossly shaped the employment levels per each period as covered by this research.The considerable expansion in the volume of tradable tasks and goods within developing countries as determined and necessitated by the demography variations human capital investments,globalization and the technological improvements of the region will continue to shape the comparative advantage of Central Asia and its employment patterns behavior.As evidenced by this research,the Central Asian economies have gone through massive structural transformation due to various and consistent trade policy reforms which made it possible for the changes and development in employment patterns.The researcher regressed employment against trade and other variables that includes consumption,inflation,investment and government expenditure in order to justify this claim.It is evident that trade has been of assistance and necessitated for the regional growth and employment fluctuations throughout the past 20 years.The results also indicated that trade has played a prominent and pivotal role in the region’s phenomenal economic development and growth as evidence by both the literature and results in this research though to a certain extent since trade is a composite of aggregate fundamental factors of the economy.