Testing Unemployment Persistence in Central and Eastern European Countries
This study investigates whether stochastic properties of the unemployment rate in ten Central and Eastern European Countries (CEE) countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia can be explained by the non-accelerating inflation...
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| Format: | Article |
| Language: | English |
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EconJournals
2013-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/497 |
| _version_ | 1797923664300081152 |
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| author | Giray Gozgor |
| author_facet | Giray Gozgor |
| author_sort | Giray Gozgor |
| collection | DOAJ |
| description |
This study investigates whether stochastic properties of the unemployment rate in ten Central and Eastern European Countries (CEE) countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia can be explained by the non-accelerating inflation rate of unemployment or the hysteresis hypotheses. We primarily show the cross-sectional dependence in unemployment rates, and then apply panel-based unit root tests that take cross-section dependence into account. The empirical findings indicate that there is no mean-reverting process in unemployment rates for ten CEE countries. Thus the results provide evidences for validity of the hysteresis hypothesis—unemployment persistence—in related CEE countries.
Keywords: Unemployment persistence; Panel-based unit root tests; Cross-section dependence
JEL Classification: C23; J64
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| first_indexed | 2024-04-10T14:49:59Z |
| format | Article |
| id | doaj.art-3c731a59921c498ca025fd7dbfc5e8e0 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:49:59Z |
| publishDate | 2013-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-3c731a59921c498ca025fd7dbfc5e8e02023-02-15T16:07:37ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382013-06-0133Testing Unemployment Persistence in Central and Eastern European CountriesGiray Gozgor0Dogus University This study investigates whether stochastic properties of the unemployment rate in ten Central and Eastern European Countries (CEE) countries: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia can be explained by the non-accelerating inflation rate of unemployment or the hysteresis hypotheses. We primarily show the cross-sectional dependence in unemployment rates, and then apply panel-based unit root tests that take cross-section dependence into account. The empirical findings indicate that there is no mean-reverting process in unemployment rates for ten CEE countries. Thus the results provide evidences for validity of the hysteresis hypothesis—unemployment persistence—in related CEE countries. Keywords: Unemployment persistence; Panel-based unit root tests; Cross-section dependence JEL Classification: C23; J64 https://www.econjournals.com/index.php/ijefi/article/view/497 |
| spellingShingle | Giray Gozgor Testing Unemployment Persistence in Central and Eastern European Countries International Journal of Economics and Financial Issues |
| title | Testing Unemployment Persistence in Central and Eastern European Countries |
| title_full | Testing Unemployment Persistence in Central and Eastern European Countries |
| title_fullStr | Testing Unemployment Persistence in Central and Eastern European Countries |
| title_full_unstemmed | Testing Unemployment Persistence in Central and Eastern European Countries |
| title_short | Testing Unemployment Persistence in Central and Eastern European Countries |
| title_sort | testing unemployment persistence in central and eastern european countries |
| url | https://www.econjournals.com/index.php/ijefi/article/view/497 |
| work_keys_str_mv | AT giraygozgor testingunemploymentpersistenceincentralandeasterneuropeancountries |