The Relationship Between Tobacco Tax and Unemployment: Turkey Analysis

There are a number of studies focusing on the relationship between the tobacco consumption and unemployment rate in turkey. therefore, this study contributes to the literature because the relationship between tobacco tax and unemployment rate has not been studied before. the objective of this study is to determine the relationship between the tobacco tax and unemployment rate in turkey over the period 2006:1-2015:7. in this context, unit root tests have been exploited to check the integration order of the variables, and the autoregressive distributed lag model including structural breaks is employed to explain the long-run relationship between the tobacco tax and unemployment rate. the findings of this study show that while an increase in unemployment rate is to raise tobacco tax in the long-run, an increase in unemployment rate is to decrease tobacco tax in the short-run