The relationship between entrepreneurship and unemployment in Turkey: a dynamic analysis

Abstract

Some recent researches have found that unemployment stimulates entrepreneurial activity. However, there are also some studies showing that higher levels of entrepreneurship reduce unemployment. Besides these basic views, some researchers claim that there is no relationship between unemployment and entrepreneurship, and they also asserted that increase in unemployment reduces the entrepreneurship. In this theoretical context, this study investigates the interrelations between entrepreneurship (self employment) and unemployment rates in Turkey in the period of 1985 2009. In the analysis made by FMOLS and DOLS methods, it was concluded that increase in unemployment reduces the entrepreneurship activities.