Analysis of the factors affecting the unemployment rates of G20 countries

ABSTRACT

In an ecosystem where globalization and digitalization constantly and rapidly increase, countries constantly develop and change in many subjects like technology, industry, education, climate change, sustainable investment. Group of 20 that comprises developed and developing 19 countries and European Comission, get together and share ideas and develop shared policies so that the economies can develop, progress in a planned and consistent manner, the economic factors are used effectively and thus develop sustainably. The Coronavirus (COVID-19) pandemic which emerged in the Wuhan city of China for the first time in December 12, 2019 and which has rapidly spread all around the world and profoundly shaken the economies has slowed down the economic activities as countries have withdrawn, which has had an impact on employment the most. Unemployment is one of the most important economic problems which the countries face and focus on the most to resolve. Therefore in this research, the share of agriculture, which affects the unemployment rates of the G20 member countries constituting more than two thirds of the world economy on an annual basis since 2000, within GPD, the inflation rate, import and export rates have been tested using the panel data analysis method. It has been concluded that the model fit the random effects model according to the Hausman test. Following that the assumptions were tested, and it was concluded that the model had heteroscedasticity, autocorrelation and interunit correlation. The final model was obtained with the Driscoll-Kraay test, which corrected all three. According to the findings achieved with this model, it was determined that the unemployment rate was affected by agriculture's share within the GDP in the same way as the export rates and that it was affected reversely by the inflation rate and the import rates.