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In this study, the effect of regional inflation on the relationship between regional unemployment and economic growth in Turkey was investigated for the period 2005-2013 using Panel Smooth Transition Regression analysis, which takes into account the inflation rate threshold level. According to the analysis results, the estimated value of the inflation threshold level is 7.98%, and below the threshold an increase in economic growth beyond the threshold leads to a decrease in unemployment rates in Turkey. On the other hand, when the inflation rate is above the threshold, an increase in economic growth leads to an increase in unemployment rates. It appears that ensuring high economic growth and low unemployment rate depends on price stability in the long term. In this regard, it is important to achieve sustainable growth, which plays a crucial role in increasing the efficiency of implemented monetary policies and assuring stability.
In this study, the effect of regional inflation on the relationship between regional unemployment and economic growth in Turkey was investigated for the period 2005-2013 using Panel Smooth Transition Regression analysis, which takes into account the inflation rate threshold level. According to the analysis results, the estimated value of the inflation threshold level is 7.98%, and below the threshold an increase in economic growth beyond the threshold leads to a decrease in unemployment rates in Turkey. On the other hand, when the inflation rate is above the threshold, an increase in economic growth leads to an increase in unemployment rates. It appears that ensuring high economic growth and low unemployment rate depends on price stability in the long term. In this regard, it is important to
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