Effect on Unemployment of Unionization Rate, Trade Openness Rate and Public Final Consumption Expenditures in Turkiye: An Empirical Analysis

This study investigates the long-term relationship and causality relationship between the unemployment rate, unionisation rate, trade openness rate and public final consumption expenditures for 1987-2020 in Turkiye. The analysis using ARDL Bounds Test and Toda-Yamamoto Causality Test determined a cointegration relationship between the unemployment rate, unionisation rate, trade openness rate and public final consumption expenditures. It has been detected that the unionisation rate has a negative effect on the unemployment rate, while the trade openness rate and public final consumption expenditures have a positive impact. In addition, unidirectional causality was found from the unionisation rate and public final consumption expenditures to the unemployment rate, and bidirectional causality between the unionisation rate and trade openness rate.