Abstract
THE IMPACT OF THE GROSS DOMESTIC PRODUCT ON EMPLOYMENT IN E7 COUNTRIES
This study examines the effect of the gross domestic product on employment of emerging economies (E7). The relationship between the employment rate and the gross domestic product using the annual data for 1992-2018 of these countries in the study was examined using dynamic panel data analysis methods. With the help of panel bootstrap cointegration test developed by Westerlund and Edgerton (2007), the effect of long-term gross national income on the employment rate of E7 countries was tried to be revealed, taking the stationary levels of the variables into consideration. The results of the analysis show that gross domestic product in E7 countries affects the employment rate in the long run. Following this stage, long term cointegration coefficients were estimated for each country using the Augmented Mean Group estimator developed by Eberhardt ve Bond (2009) and Eberhardt and Teal (2010). According to the obtained coefficients, the impact of GDP on employment rate differs from one country to another.
Keywords
E7 countries, employment rate, gross domestic product, panel cointegration analysis, augmented mean
