Research Information System
Hitit Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, vol.11, no.2, pp.1946-1959, 2018 (Peer-Reviewed Journal)
Nowadays, where being competitive is considered equal to productivity, productivity and factorsaffecting productivity constitute a popular discussion area. Hence, as the relevant literature isreviewed, it was observed that attention focuses on labor productivity and on the relationship betweenwages and inflation, which are considered as the factors that affect the productivity. In this study,while cointegration test of Johansen (1988) and Johansen/Juselius (1990) was used to investigatewhether there is a long-term relationship or not between real wages, productivity and inflation inTurkey during the period 1988-2012, the direction of this relationship was examined via the VectorError Correction Model (VECM). The results demonstrated a long-term relationship between all threevariables and the direction of this relationship in the long-term was determined as, from productivityand inflation towards the real wages. Moreover, in short-term, a causality relationship was determinedboth from inflation to real wages and from inflation to productivity. On the other hand, theidentification of the negative effect of the crises on productivity is one of the important results reachedby this study.