The effect of R&D expenditures on youth unemployment: The example of Türkiye

This study examines the impact of R&D expenditures on youth unemployment. Youth unemployment is an important indicator of economic growth, and R&D expenditures are one of the basic elements of economic development. In the study conducted using annual data for the period 1996-2020 in Turkey, the relationship between R&D expenditures and youth unemployment was examined. Analysis has revealed that R&D expenditures have a significant impact on youth unemployment and that education expenditures also play a role in this effect. It has been observed that the increase in education expenditures causes a decrease in short-term youth unemployment rates, but its effect decreases in the long term. However, it has been determined that R&D expenditures have led to a significant decrease in youth unemployment over time and that this decrease is sustainable. While unemployment was considered as the dependent variable in the analyses, R&D expenditures and GDP were used as independent variables. According to the results of impact-response analysis and Granger causality analysis, it was concluded that R&D expenditures are the cause of youth unemployment. These findings show that education expenditures can reduce youth unemployment in the short term but are not a sustainable solution in the long term, while R&D expenditures have a more permanent and sustainable effect on youth unemployment. As a result, it is thought that R&D investments can contribute positively to the general health and innovation capacity of the economy by reducing youth unemployment rates in the long term. Keywords: Youthlessness, R&D Expenditures, Education Expenditures, Granger Causality, Var Model, Action-Reaction.