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The Relationship Between Sectoral Employment and Economic Growth In Turkey: Hidden Cointegration And Asymmetric Causality Test

Author

Listed:
  • UÄŸur YILDIRIM
  • Özgür ENGELOÄžLU

Abstract

A government implements economic policies to manage the economy and improve welfare conditions in a country. Providing productive spaces for the labor force in a country is also one of the primary objectives of economic policy makers. Therefore, the sectors in which the labor force is located and its contributions to the economy are important parameters. In this study, the relationship between sectoral employment rates and economic growth is analyzed. In the study, firstly, with the changing economic policies in Turkey after 1980, the sectoral outlook of the labor force is presented, and various evaluations are made. Then, hidden cointegration and asymmetric causality tests were conducted with quarterly data for the period between 2000Q1-2022Q3. According to the hidden cointegration analysis, cointegration relationship is found from positive shocks of agricultural employment to both positive and negative shocks of economic growth and from negative shocks of construction employment to positive shocks of economic growth. According to the results of asymmetric causality tests, positive shocks of the service sector are found to be the cause of negative shocks of GDP.

Suggested Citation

  • UÄŸur YILDIRIM & Özgür ENGELOÄžLU, 2023. "The Relationship Between Sectoral Employment and Economic Growth In Turkey: Hidden Cointegration And Asymmetric Causality Test," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 2.
    • Handle: RePEc:fis:journl:230222
    DOI: 10.25295/fsecon.1255703
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    Keywords

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    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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