The Relationship Between Poverty, Unemployment and Economic Growth: An Application for Turkey and Nuts 1 Regions Scale

The aim of this study is to analyse whether there is a causality relationship among poverty, unemployment, and economic growth both in Turkey and at scale for Nuts 1 regions between 2006 and 2018 using panel data method. The Fischer causality test findings of the study show that there is a unilateral causality relationship from poverty to economic growth while there is a bilateral causality relationship between poverty and unemployment and while there is a bilateral causality relationship between unemployment and economic growth. It was observed that there is a unilateral causality relationship from economic growth to poverty rate in Nuts 1 regions of the Mediterranean, Eastern Anatolia and South-eastern Anatolia. The unemployment and poverty rates influence each other bilaterally in Istanbul and in South-eastern Anatolia Nuts 1 region. Economic growth and unemployment rate are in a bilateral influence condition in Nuts 1 of North-eastern Anatolia. The causality relationship among variables does not show differences in terms of other Nuts 1 regions. The findings of the study show that, economic development as well as policy precautions aiming the increase of welfare level of those suffering from poverty and from unemployment are inevitable for developing countries point of view during a sustainable development attempt.