GLOBALIZATION AND UNEMPLOYMENT. EMPIRICAL REFLECTIONS FROM THE WORLD-SYSTEM THEORY PERSPECTIVE

This article shows the relevance of quantitative theories of dependency and the world system for the explanation of unemployment both on the global system level and on the level of European regions. There are long-term negative correlations between a high penetration of foreign capital (UNCTAD concept) and employment performance at the world level, and this negative effect of a high penetration by foreign capital is also observed in a study of regional development in the European Union. This led to the conclusion that there is need for changing the policy proposed by the European Commission for developing a EU strategy with an industrial policy.