Abstract:

This study investigates the relationship between energy consumption and unemployment in Turkey over the period from 1980 to 2015 by utilizing the Gregory-Hansen cointegration test and Toda-Yamamoto causality test. The Gregory-Hansen cointegration test results show that there is a cointegration relationship between the variables in the long run. According to Toda-Yamamoto causality test results, there is unidirectional causality relationship between variables from energy consumption to unemployment rates. Therefore, it is concluded that changes in energy consumption affects unemployment rates. It should be taken into consideration that energy consumption has effect on unemployment rates by policy makers.

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