IDEAS home Printed from
   My bibliography  Save this article

Econometric Evaluation Of The Relationship Economic Growth And Unemployment In Eu & Turkey


  • Erygit Pinar

    () (Celal Bayar University, Manisa, Turkey, Kula Vocational School)

  • Cura Serkan

    () (Celal Bayar University, Manisa, Turkey,)

  • Zungun Deniz

    () (Celal Bayar University, Manisa, Turkey, The Faculty of Economics and Administrative Sciences)

  • Ortanca Murat

    () (Celal Bayar University, Manisa, Turkey, The Faculty of Economics and Administrative Sciences)


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.

Suggested Citation

  • Erygit Pinar & Cura Serkan & Zungun Deniz & Ortanca Murat, 2014. "Econometric Evaluation Of The Relationship Economic Growth And Unemployment In Eu & Turkey," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 452-462, July.
  • Handle: RePEc:ora:journl:v:1:y:2014:i:1:p:452-462

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries," LABOUR, CEIS, vol. 27(4), pages 399-420, December.
    2. Brian Silverstone & Richard Harris, 2001. "Testing for asymmetry in Okun's law: A cross-country comparison," Economics Bulletin, AccessEcon, vol. 5(2), pages 1-13.
    3. Jushan Bai & Serena Ng, 2004. "A PANIC Attack on Unit Roots and Cointegration," Econometrica, Econometric Society, vol. 72(4), pages 1127-1177, July.
    4. Brauninger, Michael & Pannenberg, Markus, 2002. "Unemployment and productivity growth: an empirical analysis within an augmented Solow model," Economic Modelling, Elsevier, vol. 19(1), pages 105-120, January.
    5. Quah, Danny, 1994. "Exploiting cross-section variation for unit root inference in dynamic data," Economics Letters, Elsevier, vol. 44(1-2), pages 9-19.
    6. Granger, C. W. J., 1980. "Testing for causality : A personal viewpoint," Journal of Economic Dynamics and Control, Elsevier, vol. 2(1), pages 329-352, May.
    7. Schimke, Antje, 2014. "Aging workforce and firm growth in the context of "extreme" employment growth events," Working Paper Series in Economics 54, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    8. Belan, Pascal & Chéron, Arnaud, 2014. "Turbulence, training and unemployment," Labour Economics, Elsevier, vol. 27(C), pages 16-29.
    9. Schimke, Antje, 2014. "Ageing workforce and firm growth in the context of “extreme” employment growth events," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 86-100.
    10. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Florina Oana Virlanuta, 2015. "Social Economy Efficiency," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 32-37.

    More about this item


    Economic Growth; Unemployment; Panel Cointegration;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2014:i:1:p:452-462. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE) The email address of this maintainer does not seem to be valid anymore. Please ask Catalin ZMOLE to update the entry or send us the correct email address. General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.