The Relationship of Economic Growth with Inflation and Unemployment in Turkey: A Regional Research

The purpose of the study is to investigate the relationship of economic growth with inflation and unemployment for Turkey’s economy. In this context, the data for the 2005-2017 periods was used and an analysis was performed at the regional level. Panel ARDL model and Dumitrescu-Hurlin panel causality test have been selected as econometric method in the study. According to the findings obtained from the study, inflation has a positive and significant effect on economic growth and unemployment has a negative and significant effect on economic growth. In addition, the long-term relationships between economic growth, inflation and unemployment appear to be significant in seventeen different regions. On the other hand, the causality relationships vary on the regions. It has been seen that there are causality relationships between economic growth and inflation in the seven regions, and also there are causality relationships between economic growth and unemployment in the seventeen regions