The relationship between inflation and unemployment in Turkey: An ARDL bounds testing approach

Inflation and unemployment are among the main problems of economies. It is necessary to understand the relationship between them in order to formulate the necessary policies against these problems. In this study it was aimed to determine the relationship between inflation and unemployment in Turkey. Autoregressive Distributed Lag (ARDL) Bound Test anaysis was conducted. After Augmented Dickey Fuller(ADF) and Phillips-Perron (PP) unit root tests cointegration relationship was investigated by ARDL bound test, then short term and long term coefficients were estimated. As a result of study cointegration relationship has been found between inflation and unemployment in Turkey for 1988-2017 period.