- Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi
- Volume:5 Issue:1
- The Relationship Between Unemployment Rate and Economic Growth: The Case of Turkey
The Relationship Between Unemployment Rate and Economic Growth: The Case of Turkey
Authors : Mehmet MUCUK, Ayşen EDİRNELİGİL, Mustafa GERÇEKER
Pages : 1-8
View : 18 | Download : 9
Publication Date : 2017-01-01
Article Type : Research Paper
Abstract :This paper investigates the relationship between unemployment rate and economic growth rate over the period 2002-2014 for Turkey. In this context, Johansen cointegration test and vector error correction model is applied to determine this relationship. Empirical findings show that the variables are not cointegrated so; there is no causal link between the two variables. This result does not support the Okun Law. However, in the short run growth shock have a negative impact on unemployment rate. On the other hand, shocks in unemployment have positive impact on the growth. The findings of this study have important policy implications.Keywords : Unemployment, Economic Growth, Turkish Economy