GRANGER CAUSALITY ANALYSIS BETWEEN ECONOMIC GROWTH AND EMPLOYMENT IN TURKEY
TÜRKİYE’DE EKONOMİK BÜYÜME VE İSTİHDAM ARASINDA GRANGER NEDENSELLİK ANALİZİ

Author : Giray BODUR
Number of pages : 469-488

Abstract

In the historical process, economic growth and diversification of economic activities have been important for societies. With the increase in the human population, the distribution of the managed scarce resources and meeting the necessities have become the main targets of economies. The data indicators demonstrating the development of economic activities and social welfare are economic growth, employment and income distribution. The employment and income distribution process created with the growth in the economy determines the view of the economy in question. There are many data that constitute the source of economic growth. One of them is the production activities fulfilled in the given period. The change in production activities compared to the former period indicates the state of the economy in question. With the globalization, the growth in national economies has begun to be calculated on expenditure items. The primary cause for this situation is the international mobility of capital. The change that took place in the production centres brought about a change in calculation items as well. The relationship between economic growth and employment has weakened with the changing understanding. While changes in employment are not shown among the reasons for the change in GDP during the period, growth in the economy during the period is insufficient to be the reason for employment creation. Turkey in 1998 - carried out between 2019 Granger Causality Test has examined the relationship between the GDP and employment and there is no causality between the two variables.

Keywords

Economic growth, employment, unemployment, Granger Causality

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