Abstract:

In the share of the country’s economy in all sectors, the relationship of the macroeconomic size to the macroeconomy is important. In this study, the relationship of public you to various macroeconomic variables in Turkey between 2006.1 - 2016.2 period was examined by Vector Autoregression (VAR) method. In addition, in the study, impact-response function, variance decomposition and VAR causality analysis were also tried to show the findings in more detail. According to the findings of the study, it is seen that economic growth is the most important variable affecting the public size within the existing variables. In the short term, there was a positive effect from the size of the public to the unemployment. However, in terms of causality analysis, a one-way causality from unemployment to public you has been determined. Finally, it has been determined that there is a negative and strong relationship between growth and unemployment, and mutual causality analysis gives meaningful results.

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