Abstract:
The objective of the study is to investigate the spatial pattern of unemployment rate with socio economic development index (SDI) and literacy rate of 81 cities of Turkey and also the spatial correlation between these variables. To observe spatial pattern of the considered variables, we firstly utilize mapping analysis. Then, two statistics of spatial autocorrelation, known as Moran’s I and bivariate Moran's I, are employed. It was found that there are a positive and significant global Moran’s I values for unemployment rate, literacy rate and SDI and thus also a negative bivariate Moran’s I values for the considered variables. Results of mapping and spatial correlation analysis show that there is spatial clustering of unemployment rate, literacy rate and SDI of 81 cities of Turkey. Also we consider classical linear and spatial regression analysis to model unemployment rate. It was found that the spatial error model is the best for modeling unemployment rate.