Measuring And Analyzing The Impact Of the Policy Of Economic Openness On Unemployment And Inflation Rates In The Turkish Economy During The Period 1990-2020

Abstract

This study aims to analyze the relationship between the degree of trade openness and unemployment and inflation rates, and for this purpose, the Error Correction Vector Model (VECM) was used, based on the data of the Turkish economy covering the period 1990-2020, and the study indicated that there is an inverse long-term relationship that leads from unemployment versus trade openness, as the study showed that there is an inverse long-term relationship that goes from inflation versus trade openness. As for the changes that occur in inflation and unemployment rates in Turkey, it explained about 70% of the changes in openness commercial.