Labor Efficiency and Economic Growth Relationship in Brics-T Countries: Panel Data Analysis

The total factor productivity is the ratio of the output to the inputs used in this process. Labor productivity, also known as partial factor productivity, is the ratio of the total output to the employed workforce. It is argued in the literature that labor productivity in a country usually affects the competitiveness of that country. The aim of this study is to explore the relationship between labor productivity and economic growth in the emerging BRICS-T countries. Graphical analysis for this purpose; Pedroni, Kao and Johansen-Fisher panel cointegration analyzes; panel Granger causality analysis and panel data models with classical, fixed effect and random effects were used. The reason why panel data analysis is used in the study is the cross-section and time effect of the data structure used. Turkey in terms of labor productivity performance compared to graphical analysis is under US and the EU(28); it is seen that it is above BRICS countries. According to econometric analyzes, it was determined that there is a cointegration relationship between labor productivity and economic growth in BRICS-T countries. In addition, a one-way Granger causality from labor productivity to economic growth has been observed. Finally, according to LR and Hausman tests, it is determined that the fixed effect model is the most appropriate model and that there is a positive correlation between labor productivity and economic growth