Abstract

In this study, the change and transformation that has been experienced in the Turkish economy within the progress of structural reforms are being probed and by breaking down the relationship between economic growth and unemployment in a dynamic manner, the reasons that the consistent growth rate that has been reached within the structural reform process had such a low level of impact on creating employment and decreasing unemployment are being discussed. In line with this aim, as is discussed in the literature, whether or not there is a fraction in the relationship between the economic growth and unemployment was tested using Zivot-Andrews (1992) Structural Test and in this scope, the work was examined by dividing it into two sub-periods as 1980-2001 and 2002-2011. The direction and the size of the relationship between the given variables have been researched by utilising Johansen co-integration and error correction model.

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