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Unemployment Persistence and Inflation Convergence: Evidence from Regions of Turkey

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  • Giray GOZGOR

Abstract

As an emerging economy, Turkey has suffered from high unemployment rate, as well as major discrepancies among regional unemployment rates, even in the periods of rapid economic growth. In this study, we mainly investigate the unemployment persistence at the regional level for Turkey, and we apply recent and powerful Panel-based Unit Root (PUR) tests, when the panels have small time series dimensions and cross-sections in highly persistent data. Results from the PUR tests clearly show that the existence of the unemployment persistence in most of the regional unemployment rates of Turkey. By using same PUR tests, we also test the possible divergence in regional inflation rates in same data for evaluating further monetary policy implications. Our findings show that national monetary policy can efficiently impacts on most of Turkish regions.

Suggested Citation

  • Giray GOZGOR, 2013. "Unemployment Persistence and Inflation Convergence: Evidence from Regions of Turkey," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(1), pages 55-64.
  • Handle: RePEc:eaa:eerese:v:13:y2013:i:1_5
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    References listed on IDEAS

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    Cited by:

    1. Alejandro C. García-Cintado & Diego Romero-Ávila & Carlos Usabiaga, 2016. "The economic integration of Spain: a change in the inflation pattern," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-41, December.
    2. repec:spr:soinre:v:135:y:2018:i:2:d:10.1007_s11205-016-1492-1 is not listed on IDEAS

    More about this item

    Keywords

    Panel unit root tests; regional unemployment; unemployment persistence; regional inflation; monetary policy; Turkey; emerging economies;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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