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Relationships between Employment and Growth from Industrial Perspective by Considering Employment Incentives: The Case of Turkey

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  • Emre Aksoy

    (Kýrýkkale University, Economics Department, Yahþihan,Kýrýkkale, Turkey)

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    Abstract

    By using quarterly data this study applied Toda-Yamamoto (1995) method for the period 1988-2010 to uncover the relationship between growth and employment in aggregate and industrial respects and also to investigate the impacts of investment and employment incentives on employment for Turkish Economy. The findings showed that the relationship between growth and employment varied with the industries. The study covers ten industries and there were causalities detected for four out of ten industries, either one or two ways. For the rest six industries covered in the study, there was no causal relationship obtained. The incentives impacts on employment, similarly, vary with industries. The law numbered as 5084 had positive and statistically significant influences on social service, manufacturing, and transportation and communication industries while the law numbered as 5763 extracted positive and significant influences on energy production and distribution, and financial intermediation industries.

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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Economics and Financial Issues.

    Volume (Year): 3 (2013)
    Issue (Month): 1 ()
    Pages: 74-86

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    Handle: RePEc:eco:journ1:2013-01-8

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    Web page: http://www.econjournals.com

    Related research

    Keywords: Employment incentives; employment growth; economic growth; Toda-Yamamoto; granger causality;

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    1. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, Elsevier, vol. 66(1-2), pages 225-250.
    2. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, Econometric Society, vol. 37(3), pages 424-38, July.
    3. Judith A. Giles & Sadaf Mirza, 1999. "Some Pretesting Issues on Testing for Granger Noncausality," Econometrics Working Papers, Department of Economics, University of Victoria 9914, Department of Economics, University of Victoria.
    4. Moosa, Imad A., 1997. "A Cross-Country Comparison of Okun's Coefficient," Journal of Comparative Economics, Elsevier, vol. 24(3), pages 335-356, June.
    5. Dufour, J.M. & Renault, E., 1995. "Short-Run and Long-Rub Causality in Time Series: Theory," Cahiers de recherche, Universite de Montreal, Departement de sciences economiques 9538, Universite de Montreal, Departement de sciences economiques.
    6. Viren, Matti, 2001. "The Okun curve is non-linear," Economics Letters, Elsevier, Elsevier, vol. 70(2), pages 253-257, February.
    7. Zapata, Hector O & Rambaldi, Alicia N, 1997. "Monte Carlo Evidence on Cointegration and Causation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 59(2), pages 285-98, May.
    8. Sims, Christopher A & Stock, James H & Watson, Mark W, 1990. "Inference in Linear Time Series Models with Some Unit Roots," Econometrica, Econometric Society, Econometric Society, vol. 58(1), pages 113-44, January.
    9. Lee, Jim, 2000. "The Robustness of Okun's Law: Evidence from OECD Countries," Journal of Macroeconomics, Elsevier, Elsevier, vol. 22(2), pages 331-356, April.
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