Çelik, Orkun; Erer, Elif

We aim to explore the role of gender in the government expenditure and unemployment nexus at regional level for Turkey. For this aim, we use the dataset covering the period 2004-2019 for 26 NUTS-2 regions in Turkey and employ a panel ARDL approach. The obtained empirical findings show that government expenditure and gross domestic product per capita provide overall, female, and male unemployment rates to diminish in the long term, which means the Keynesian approach is valid on the long term. Nevertheless, on the short term, government expenditure induces rises in the male and female unemployment rates. This result indicates the validation of the Abrams Curve Hypotesis in male and female unemployment rates on the short term. Also, inflation rate increases overall and male unemployment rate on the long term, but having significant and positive impact on only female unemployment rate on the short term. All these findings show that gender has a significant role in this nexus. The expected contribution of this study to literature is to investigate the impact of government expenditure on unemployment by gender at regional level for Turkey. We are of opinion that our empirical findings can guide policy makers in active plans fighting unemployment.

Çelik, Orkun; Erer, Elif

We aim to explore the role of gender in the government expenditure and unemployment nexus at regional level for Turkey. For this aim, we use the dataset covering the period 2004-2019 for 26 NUTS-2 regions in Turkey and employ a panel ARDL approach. The obtained empirical findings show that government expenditure and gross domestic product per capita provide overall, female, and male unemployment rates to diminish in the long term, which means the Keynesian approach is valid on the long term. Nevertheless, on the short term, government expenditure induces rises in the male and female unemployment rates. This result indicates the validation of the Abrams Curve Hypotesis in male and female unemployment rates on the short term. Also, inflation rate increases overall and male unemployment rate on the long term, but having significant and positive impact on only female unemployment rate on the short term. All these findings show that gender has a significant role in this nexus. The expected contribution of this study to literature is to investigate the impact of government expenditure on unemployment by gender at regional level for Turkey. We are of opinion that our empirical findings can guide policy makers in active plans fighting unemployment.

Bölükbaş, Mehmet; Topal, Mehmet Hanefi; Hotunluoğlu, Hakan

Twin deficits hypothesis has been one of the most widely-applied phenomenon in the economics literature. In this study, the twin deficits hypothesis was tested for the EU-27 member states and Turkey with the data covering the 2002:Q1-2014:Q1 period. Unlike other studies, the twin deficits hypothesis was tested by using second generation panel causality tests that considered the cross-sectional dependence. According to the findings of this study, which used panel Granger causality tests suggested by Dumitrescu-Hurlin (2012) and Emirmahmutoğlu-Kose (2011), there is statistically significant bidirectional causality between budget deficit (BD) and current account deficit (CAD) in the relevant period. It was found out a bidirectional causality between BD and CAD in sixteen of the twenty-eight countries (Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Netherlands, Romania, Spain, Turkey and the UK) and a unidirectional causality from BD to CAD was also noticed in five EU countries (Cyprus, Latvia, Lithuania, Poland and Slovakia). Nevertheless, the findings indicated that there is a unidirectional causality from CAD to BD in Hungary, Luxembourg and Malta but there is no causality between BD and CAD in Ireland, Portugal, Slovenia, and Sweden.