Economic growth and unemployment in Turkey

In the Fordist era, the form of the income distribution after the economic growth raised the demand for commodities and services. In the meantime, the capital accumulation in the national borders stimulated the investments. Thus, growth alleviated unemployment. Nevertheless, in the post-fordist era, economic growth and unemployment occurs concomitantly. Throughout globalization, the valueadded creating process and the distribution of the value-added have been transformed. As a matter of fact, while production is materialized in a value chain, the centers where value-added is created and distributed are driven away spatially in the globe. Hence, the relations of production exceed the national boundaries, and thus the purpose and form of labour market regulation have been adjusted. On the other hand, on the evidence of openness, real sector and labour market became more dependent on the financial markets. Consequently, capital flows cause a speculative growth path and unemployment rises, for the value-added increase created in real sector does not accumulate in the national borders and, thus, is not reinvested. In this context, this thesis aims to analyze the relation between economic growth and unemployment. In the first chapter, concepts of economic growth and unemployment are defined. In the second, the realization of the economic growth in global economy and its effects on labour markets are described. Especially, it is focused on financial markets, global value chain and competition in the chain. Finally, in the third chapter, the relation between economic growth and unemployment in Turkey is problematized, while valueadded flows in global economy are scrutinized.