Abstract:

Sustainable economic growth and increasing employment are among the main objectives of economic policies. Explaining the relationship between the concepts and determining the direction of the relationship has an important role in the realization of these objectives. Today, the share of the services sector in total employment is higher than the total share of the agriculture and industry sectors. Therefore, the relationship between economic growth and employment has been approached from a sectoral perspective in this study. The causality relationship between employment in the services sector and economic growth has been examined through the example of Türkiye. The variables used are the share of people employed in the services sector in total employment and gross domestic product in chain linked volume index. The analysis was carried out with Engle-Granger cointegration test and the Granger causality test and covers the years 1998-2021. The analysis' results demonstrate that there is a long-term relationship between the series and a one-way causal relationship between employment in the services sector and economic growth.

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