Abstract:

This study for Turkey from the period 2005-2012, investigates the causal relationships between the efficiency of the main manufacturing industry groups such as intermediate goods, sustainable consumer goods, unsustainable consumer goods, energy and capital goods and the nominal wage levels and the causal relationships between the producer and consumer prices. In addition, this study analyzed the relationship between the total nominal wage levels and the price of the producer and consumer for the period 1997-2012. Toda-Yamamoto causality test has provided a strong proof that there is a double causality relationship between the overall nominal wage levels and the producer and consumer prices. In most of the main industry groups studied in the study, the direction of causality relationship is true from nominal wages to prices. Only in search manufacturing is a double-oriented causal relationship between the efficiency adjusted nominal fees and prices.

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