Testing Okun’s Law: Evidence From the Western Balkan Countries
Sustainable economic growth and reducing unemployment stood at the heart of each monetary policy. Despite controversial discussions among scholars, Okun’s Law remains a valuable tool for measuring the relationship between economic growth and the unemployment rate. The study covers the six Western Ba...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2023-11-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440231208332 |
| _version_ | 1797623667453067264 |
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| author | Dritero Arifi Hajdi Xhixha Florin Aliu |
| author_facet | Dritero Arifi Hajdi Xhixha Florin Aliu |
| author_sort | Dritero Arifi |
| collection | DOAJ |
| description | Sustainable economic growth and reducing unemployment stood at the heart of each monetary policy. Despite controversial discussions among scholars, Okun’s Law remains a valuable tool for measuring the relationship between economic growth and the unemployment rate. The study covers the six Western Balkan (WB) countries using quarterly unemployment and economic growth data from 2005 to 2019. The results were obtained from the Vector Autoregressive Model, Granger Causality Test, and Impulse Response Function. The findings show that the GDP growth rate has no influence on the unemployment rate in the case of six Western Balkan countries. From the policy perspective, the outcomes of this study provide valuable indications for the policymakers in WB countries on the importance of economic growth in reducing the unemployment rate. |
| first_indexed | 2024-03-11T09:32:04Z |
| format | Article |
| id | doaj.art-20f5031f7efc493dbd40ffd1e5dde834 |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-03-11T09:32:04Z |
| publishDate | 2023-11-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-20f5031f7efc493dbd40ffd1e5dde8342023-11-16T17:33:36ZengSAGE PublishingSAGE Open2158-24402023-11-011310.1177/21582440231208332Testing Okun’s Law: Evidence From the Western Balkan CountriesDritero Arifi0Hajdi Xhixha1Florin Aliu2University for Business and Technology, Prishtina, KosovoUniversity for Business and Technology, Prishtina, KosovoSchool of Expertness and Evaluation, Institute of Technology and Business, Ceske Budejovice, Czech RepublicSustainable economic growth and reducing unemployment stood at the heart of each monetary policy. Despite controversial discussions among scholars, Okun’s Law remains a valuable tool for measuring the relationship between economic growth and the unemployment rate. The study covers the six Western Balkan (WB) countries using quarterly unemployment and economic growth data from 2005 to 2019. The results were obtained from the Vector Autoregressive Model, Granger Causality Test, and Impulse Response Function. The findings show that the GDP growth rate has no influence on the unemployment rate in the case of six Western Balkan countries. From the policy perspective, the outcomes of this study provide valuable indications for the policymakers in WB countries on the importance of economic growth in reducing the unemployment rate.https://doi.org/10.1177/21582440231208332 |
| spellingShingle | Dritero Arifi Hajdi Xhixha Florin Aliu Testing Okun’s Law: Evidence From the Western Balkan Countries SAGE Open |
| title | Testing Okun’s Law: Evidence From the Western Balkan Countries |
| title_full | Testing Okun’s Law: Evidence From the Western Balkan Countries |
| title_fullStr | Testing Okun’s Law: Evidence From the Western Balkan Countries |
| title_full_unstemmed | Testing Okun’s Law: Evidence From the Western Balkan Countries |
| title_short | Testing Okun’s Law: Evidence From the Western Balkan Countries |
| title_sort | testing okun s law evidence from the western balkan countries |
| url | https://doi.org/10.1177/21582440231208332 |
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