Entrepreneurship, Innovation and Business Cycles in Turkey

The objective of this study is to investigate the effects of entrepreneurship and innovation activities on business cycles in Turkey. On account of this aim, the related data which is the period of 2000-2016 in Turkey are analyzed using the ARDL model. The estimation results of the model for the period show that innovation activities are pro-cyclical. In other words, innovation activities have a positive relationship with the cycles. Accordingly, the increasing of innovation activities contributes to the expansion of the economy. On the contrary, the entrepreneurship activities have a negative sign with the cycles, that is, they are counter-cyclical. In other words, it has indicated that these activities increase in the recession period and decreasing in the expansion period of the cycles.