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Interaction of Unemployment with Selected Macro-Economic Indicators in Turkey: SVAR Analysis
This study aims to examine the interaction of the unemployment indicator with the foreign investment flows, which have gained importance with the impact of globalization, the interaction with the savings that have an important place in the financing of the investments, the interaction with the R&D expenditures that are emphasized in the new economic order over the period 1996-2018. In this study using the SVAR model, the unemployment rate, the share of foreign direct investment flows in the gross domestic product, the share of R&D expenditures in gross domestic product and share of savings in the gross domestic product are used as a percentage. The findings reveal that the foreign direct investment flows explained 50% of the changes in unemployment, R&D expenditures explained 28% of the changes in unemployment, and the savings explained 13% of the changes in unemployment. 9% of the changes in unemployment arise from the internal dynamics of unemployment.

Unemployment, macroeconomy, foreign direct investment flows, R&D, savings, SVAR.

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