Analysis of the Validity of the Phillips Curve in Turkic Republics

Sözen İ., Tufaner M. B.

International Conference on Eurasian Economies, Baku, Azerbaijan, 20 - 22 September 2022, pp.295

  • Publication Type: Conference Paper / Summary Text
  • City: Baku
  • Country: Azerbaijan
  • Page Numbers: pp.295
  • Dokuz Eylül University Affiliated: Yes

Abstract

The trade-off between unemployment and inflation has long been debated. The negative relationship between inflation and unemployment is explained by the Phillips Curve. Various schools of economics have different views of the Phillips Curve. The aim of the study is to analyze the validity of the Phillips Curve in Turkic Republics. In the study, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Turkmenistan, and Uzbekistan were analyzed for the period 1991-2020. In this context, panel causality and cointegration tests were used to reveal both shortand long-term relationships. According to the results of the panel data analysis, a mutual relationship was found between unemployment and inflation both in the short-term and in the long-term.