IMPACT OF GDP GROWTH ON UNEMPLOYMENT DURING THE EXPANSION PERIODS: A STUDY ON OKUN’S LAW FOR TURKEY

Erkan Demirbaş [1] , M. Kaya [2]

318 483

The aim of this study is to analyze the relation between unemployment rate and Gross Domestic Product, as it is postulated in the Okun’s law. In this study, Gross Domestic Product is divided into two parts by approaching from a different perspective such as gross capital formation of investment and final consumption expenditure as a contribution to the earlier studies. A dummy variable is also added in the model, which represents the periods of expansion in the Gross Domestic Product. According to the results of analyses, existence of the co-integration is confirmed in the long-run between variables. There is a negative and significant relation between unemployment and years of expansion in the short run. The Vector Error Correction Model also unveils that disequilibrium in the model will gravitate toward the balance each period
The aim of this study is to analyze the relation between unemployment rate and Gross Domestic Product, as it is postulated in the Okun’s law. In this study, Gross Domestic Product is divided into two parts by approaching from a different perspective such as gross capital formation of investment and final consumption expenditure as a contribution to the earlier studies. A dummy variable is also added in the model, which represents the periods of expansion in the Gross Domestic Product. According to the results of analyses, existence of the co-integration is confirmed in the long-run between variables. There is a negative and significant relation between unemployment and years of expansion in the short run. The Vector Error Correction Model also unveils that disequilibrium in the model will gravitate toward the balance each period.
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Primary Language en
Journal Section Articles
Authors

Author: Erkan Demirbaş

Author: M. Kaya

Dates

Publication Date: October 14, 2015

Bibtex
APA Demirbaş, E , Kaya, M . (). . , (46), . Retrieved from http://dergipark.org.tr/dpusbe/issue/4788/66086
MLA Demirbaş, E , Kaya, M . "". (): <http://dergipark.org.tr/dpusbe/issue/4788/66086>
Chicago Demirbaş, E , Kaya, M . "". ():
RIS TY - JOUR T1 - AU - Erkan Demirbaş , M. Kaya Y1 - 2015 PY - 2015 N1 - DO - T2 - Dumlupınar Üniversitesi Sosyal Bilimler Dergisi JF - Journal JO - JOR SP - EP - VL - IS - 46 SN - 1302-1842-2587-005X M3 - UR - Y2 - 2019 ER -
EndNote %0 Dumlupınar Üniversitesi Sosyal Bilimler Dergisi %A Erkan Demirbaş , M. Kaya %T %D 2015 %J Dumlupınar Üniversitesi Sosyal Bilimler Dergisi %P 1302-1842-2587-005X %V %N 46 %R %U
ISNAD Demirbaş, Erkan , Kaya, M. . "". Dumlupınar Üniversitesi Sosyal Bilimler Dergisi / 46 (October 2015): -.
AMA Demirbaş E , Kaya M . . Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2015; (46): -.
Vancouver Demirbaş E , Kaya M . . Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2015; (46): -.