EFFECT OF INFLATION AND UNEMPLOYMENT RATE ON LABOR PRODUCTIVITY: AN EMPIRICAL ANALYSIS ON TURKISH ECONOMY
İŞGÜCÜ VERİMLİLİĞİ ÜZERİNE ENFLASYON VE İŞSİZLİK ORANININ ETKİSİ: TÜRKİYE EKONOMİSİ ÜZERİNE BİR AMPİRİK ANALİZ

Author : Sevilay SARICA
Number of pages : 276-292

Abstract

The existence of the relationship between the labor productivity, unemployment rate and inflation has a quite important place in the economics. In this study, the existence and direction of a long-termed relationship had been reviewed between the labor productivity, unemployment rate and inflation by means of being used of the quarterly data including the periods of 2007:1 and 2017:3 of Turkish industry. In the study, the ARDL Test (Bound Cointegration Test) and Granger Causality Test had been used. It had been determined that there was a long-termed relationship between the productivity and unemployment rate and inflation, as a result of the empirical findings obtained. Whereas there was an unidirectional and strong causality relationship towards the productivity from the unemployment rate with regards to either the short-run or long-run, it had been determined that an unidirectional causality came into question only towards the productivity from the inflation with regards to the short-run, according to the Granger Causality Test results. When it is looked-at the direction of the relationship, it had been seen that the results reached supported the opinion based on the Alternative Theoretical Opinion and more study in order not to be the person dismissed firstly. In conclusion, while the increment increases the labor productivity in the unemployment rate, the increment to be come to existence in the inflation shall decrease the labor productivity

Keywords

Labour productivity, unemployment rate, inflation, time series

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