Twin Transformation and Employment: An Empirical Analysis on Türkiye
Chapter from the book: Ata, A. Y. (ed.) 2026. Current Issues in Macroeconomic Policies.

Burcu Karaca

Synopsis

With the acceleration of technological transformation, radical changes have occurred in production, employment, and consumption structures; while the intensive and often unsustainable use of natural resources has deepened environmental problems on a global scale. These developments have led to green transformation policies, which focus on environmental sustainability, becoming increasingly decisive in economic and social policy design. In recent years, the simultaneous consideration of digitalization and environmental sustainability goals has brought the "twin transformation" approach to the forefront of discussions for both policymakers and academic literature. In this context, this study aims to examine the impact of carbon intensity and R&D expenditures on employment in Turkey from a twin transformation perspective. The study uses annual data from 1990–2024, and the relationships between variables are analyzed using time series econometric methods. The stationarity properties of the series were examined using the Augmented Dickey-Fuller (ADF) unit root test, and it was determined that all series became stationary in the first difference. The appropriate lag length was determined through the VAR model, and then the long-term relationships between the variables were tested using the Johansen cointegration test. The findings indicate a long-term cointegration relationship between employment rate, carbon intensity, and R&D expenditures. Examination of long-term coefficients reveals that an increase in carbon intensity negatively impacts employment, while an increase in R&D expenditures positively supports employment. These results highlight that considering environmental sustainability and increasing innovative production capacity in the economic growth process is critically important for job creation potential. Furthermore, the findings suggest that policymakers should encourage a transition to a low-carbon production structure and promote R&D investments.

How to cite this book

Karaca, B. (2026). Twin Transformation and Employment: An Empirical Analysis on Türkiye. In: Ata, A. Y. (ed.), Current Issues in Macroeconomic Policies. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1347.c5425

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Published

June 30, 2026

DOI