ScholarLens Back to search
2017•DergiPark (Istanbul University)Open access

The Relationship Between Unemployment Rate and Economic Growth: The Case of Turkey

Mehmet Mucuk, Ayşen Edirneligil, Mustafa Gerçeker

Open full text 8 citations

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.

Open-access reader

About this research paper

What this paper is about

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.

Why it matters

OpenAlex reports 8 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available 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.

Key concepts: Cointegration, Economics, Unemployment, Econometrics, Unemployment rate, Error correction model, Context (archaeology), Shock (circulatory)

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The Relationship Between Unemployment Rate and Economic Growth: The Case of Turkey — Research Paper | ScholarLens