THE RELATIONSHIP OF INFLATION, UNEMPLOYMENT AND ECONOMIC GROWTH PANEL DATA ANALYSIS IN SELECTED OECD COUNTRIES

Abstract

The aim of this study is to analyze the causality relationship between inflation, unemployment and economic growth variables for selected OECD (France, Australia, Canada, Germany, Iceland, Poland, Italy, Spain, Portugal, Turkey) countries using the data set for the years 2010-2020. with to reveal. In order to determine whether the economic growth variable has an effect on unemployment and inflation, unit root tests were first conducted for the variables used in the study. According to the results of the test, it was determined that the variables contained unit root. Considering the data obtained from this study, the hypothesis that there is no cointegration at the 5% significance level on average is rejected. According to Dumitrescu and Hurlin (2012) panel causality test, although a bidirectional causality relationship was detected between growth and unemployment variables, a unidirectional causality relationship was found between unemployment and inflation variables. In this context, it is known that there is a cointegration relationship between the variables (economic growth, inflation, unemployment) for at least one of the countries. It is expected that this study will contribute to the literature with current data and new generation econometric tests.