Okun's Law, economic growth and employment: The case of Turkey

In this study, the aim and theme of the researh topic are adressed in the introduction chapter. Economic theories are discussed in terms of economic growth, unemployment and employment in chapter two, right after introduction. In chapter three, the relationship between economic growth, unemployment and employment in Turkey are explained. In the fourth chapter of the thesis, Okun's Law is examined firstly, and after that the validity of Okun's Law in Turkey is tested with the NARDL approach which has been newly introduced in literature. In this thesis, both the linear and non-linear ARDL models are analyzed for comparison purposes and both approaches find a long run relationship between output and unemployment rate. The NARDL approach shows that the response of unemployment with positive and negatice changes in the output will be the same in the long run. Accordingly, there is a symmetry relationship between output and unemployment rather than asymmetry relation. Keywords: Okun's law, asymmetry, NARDL, ARDL.