The effects of foreign trade and inflation's jobless growth on the Turkish economy

Economic growth is a macroeconomic variable which is very important for the country's and households living standards. As known in literature, economic growth is expected to increase employment. But in last years it has been argued that growth does not cause employment. Within the framework of this controversy, this study comprises the coming to existence of non-growth, its various phases, recommendations, aiming at solving related issues, furthermore, whether this phenomenon has effects on the macroeconomic indicators of the Turkish economy in particular. Within this dissertation, answers are sought to questions like; how real the concept of jobless growth is, if so, its share in agriculture and manufacturing industries, as well as how and to what extent the concept of Industry 4.0, which was a result of technological advancements, affects economic growth and rate of employment. In this study, the relations among foreign trade, inflation and economic growth has been examined, for the period between 1980-2017 as the basis and the Granger Causality test has been deployed. The results of the analysis show that there is no causality exists from growth to foreign trade and from foreign trade to growth. Besides, no relation between foreign trade and unemployment was detected. A causality relation has been detected both ways between inflation rate and economic growth. And also no relation has been detected both ways between economic growth and unemployment.