Abstract:

The industrial sector is one of the most important factors showing the economic power of a country. The high employment in this area shows that the country is advanced in the industrial sector and that this sector plays a role in economic development. The aim of this study is to analyze the relationship between employment and economic growth in the industrial sector in Turkey by econometric methods and to determine the direction of the relationship. Our work includes the years 1991-2017. ARDL (Auto Regressive Distrubuted Lag Models) is the method of co-integration and Granger Cause Test. According to the results obtained from the ARDL Co-integration analysis, a long-term relationship between employment and economic growth in the industrial sector has been revealed. According to the Granger Causal Test, the industrial sector has formed one-way cause from employment to economic growth.

Abstract:

The industrial sector is one of the most important factors showing the economic power of a country. The high level of employment in this area indicates that the country has developed in the industrial sector and that this sector plays a role in economic development. The purpose of this study, to examine the relationship between economic growth and employment in the industrial sector in Turkey with the econometrics methods and to determine the direction of the relationship. Our study includes the years 1991-2017. As econometrics method, ARDL Auto Regressive Distributed Lag Models cointegration method and Granger causality test were applied. According to findings from the ARDL cointegration analysis, there is a long-run relationship between employment growth in the industrial sector and economic. According to the Granger Causality Test, one-way causality has occurred from employment in the industrial sector to economic growth.

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