The Impact of Globalization and Economic Openness on Employment in Libya during the Period (1991–2025)
DOI:
https://doi.org/10.65422/sajfas.v2i2.416Keywords:
Libya; SMEs; electronic payments; digital trust; payment capability; financial inclusion; business growth; fintechAbstract
This study examined the impact of globalization and economic openness on Libya's employment-to-population ratio during the period (1991–2025) using the Autoregressive Distributed Lag (ARDL) approach and the Error Correction Model (ECM). The findings revealed that globalization has a statistically significant positive effect on long-term employment; however, short-term shocks from economic openness and trade integration exert temporary negative pressures on domestic employment due to import competition. Furthermore, GDP growth showed a weak immediate capacity for job creation, reflecting the rentier nature of the Libyan economy, while the negative and statistically significant error correction term (-0.3835) confirmed that approximately 38.35% of short-run disequilibria are corrected annually toward long-term equilibrium.
