Annals of the University of Oradea: Economic Science (Jul 2014)
ECONOMETRIC EVALUATION OF THE RELATIONSHIP ECONOMIC GROWTH AND UNEMPLOYMENT IN EU & TURKEY
Abstract
Unemployment, in Turkey as well as in the whole, world poses huge economic problems. When considering Turkey's economy with a continued growth but a sustainable growth trend that cannot be provided and cannot be avoided in unemployment. The concepts of unemployment and economic growth in the macro and micro level are the subject of many studies. Economists look for solutions to these problems that are faced by each country; unemployment, unemployment causes, economic growths are all concepts that are discussed. Turkey's population growth rate is high, investment and capital accumulation at the desired level cannot be performed, the quality of labor as a lack of economic and political instability, informal employment, the existence of inter-regional disparities, the lack of sufficient support in agriculture contribute to the many reasons such as unemployment, the foundation raised as an issue is caused to the end. One of the biggest problems faced by Turkey's economy has long been the problems of unemployment. Many policies have been identified and implemented to combat unemployment have been studied. High rates of growth to reduce unemployment are among the most important of these policies. The relationship between unemployment and growth for the first time was examined by Arthur M. Okun (1962). The main objective of this study with the participation of Croatia in 2013 with 28 member countries of the European Union and in Turkey for the period 2001-2011 is to examine and test the relationship between economic growth and unemployment is variable. Analysis Breitung (2000), ADF Fisher and Levin, Lin and Chu (2002) panel unit root tests, Westerlund (2007) panel cointegration tests are used. Breitung (2000), ADF Fisher and Levin, Lin and Chu (2002) tests taken by the series of first differences were stagnant. In addition, error correction model established between unemployment and economic growth Hausman tests were performed, and long-term parameters have been shown to be homogeneous, long-and short-term relationships Average Pooled Estimator Group (PMG) and have been estimated. Unemployment and economic growth variables among long-term relationships Westerlund (2007) panel co-integration test with the tested and analysis of our results of unemployment in the short and long-term parameters are significant and economic growth on the long term effects of positive and short-term effect was negative, was observed. In addition, a 1% increase in unemployment in the long-term economic growth, while an increase of 0.35%, a decrease of 0.26% in the short term cause has been determined.
