THE MODERATING EFFECT OF EDUCATION LEVEL ON THE RELATIONSHIP BETWEEN TRADE OPENNESS AND EMPLOYMENT IN NORTH AFRICAN ECONOMIES

Abstract

Objective: This study explores how education level moderates the relationship between trade openness and employment in North African economies, examining whether higher education levels enhance or mitigate the employment effects of trade openness.   Theoretical Framework: The research draws on economic and educational theories to examine the interplay between human capital and economic policies. It uses trade openness theories to assess the impact of economic integration on employment, and human capital theories to analyze the role of education.   Method: The study uses a quantitative approach with panel data from North African economies (2000-2020). PLS-SEM models with interaction terms evaluate the moderating effect of education on the trade openness-employment relationship, using data from international trade databases and national educational statistics.   Results and Discussion: Findings indicate that trade openness positively influences employment, with the effect amplified by higher education levels. Economies with better education systems benefit more from trade openness in terms of employment. The discussion underscores the importance of educational investment for maximizing these benefits and addresses issues like differing educational quality and labor market conditions across countries.   Research Implications: The study suggests that North African policymakers should enhance educational systems to maximize the employment benefits of trade openness, offering practical insights into how education can help address globalization challenges and drive economic growth.   Originality/Value: This study uniquely combines education and economic policy perspectives to examine the moderation of trade openness effects on employment in North Africa, providing valuable implications for academic research and policy formulation.