İktisadi Büyüme ve Sefalet Endeksi Arasındaki İlişki: Geçiş Ülkeleri Örneği

Abstract

Unemployment and inflation, the main components of the misery index, continue to be vital macroeconomic problems, which draw researchers’ attention both in developed and developing countries. The study investigates the interaction among economic growth and misery index in the selected transition countries using Panel ARDL. In the study, annual data for the period of 1996-2017 of selected 16 transition countries are used. The findings of the study show that there is a long-run relationship between the misery index and economic growth. In other words, it can be concluded that economic misery deteriorates economic growth. If the economy is to be sustainably improved, the misery index should be taken into account. The government needs a policy of decreasing inflation and unemployment, which is one of the fundamental macroeconomic policy priorities. This study may provide policy-makers with new insights to evaluate the role of economic misery in enhancing economic growth in transition countries.