Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018
Economic growth and the level of employment are two key factors that economists should consider when analyzing different economic aspects. In this article, we focus on the relation between the growth of unemployment rate and the growth of real gross domestic product (both expressed as a percentage)...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2018-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2019/02/16-1.pdf |
| _version_ | 1818837627520942080 |
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| author | Lipară Daniel Gheorghiu Gabriela Barbu Corina Aurora |
| author_facet | Lipară Daniel Gheorghiu Gabriela Barbu Corina Aurora |
| author_sort | Lipară Daniel |
| collection | DOAJ |
| description | Economic growth and the level of employment are two key factors that economists should consider when analyzing different economic aspects. In this article, we focus on the relation between the growth of unemployment rate and the growth of real gross domestic product (both expressed as a percentage) in the case of Romania. In our research we answer at the following questions? Is Okun’s rule valid in Romanian economy from 2000 to 2018? Does it hold over time? What is the relation between these variables? The empirical analysis showed the inverse relationship between them, confirming Okun’s findings, underlying that the rule is valid in the Romanian economy in the analyzed period, although the small value of R-squared made us interpret the results with caution, questioning somehow the sustainability of the law over time. Its validity can be seen more on short term analysis rather than on long term projections. |
| first_indexed | 2024-12-19T03:25:31Z |
| format | Article |
| id | doaj.art-ae06504e194c41d88b0d8c84101d96d9 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-19T03:25:31Z |
| publishDate | 2018-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-ae06504e194c41d88b0d8c84101d96d92022-12-21T20:37:39ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272018-01-01XVIII2279284Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018Lipară Daniel0Gheorghiu Gabriela1Barbu Corina Aurora2“Ovidius” University of Constanţa“Ovidius” University of Constanţa“Ovidius” University of ConstanţaEconomic growth and the level of employment are two key factors that economists should consider when analyzing different economic aspects. In this article, we focus on the relation between the growth of unemployment rate and the growth of real gross domestic product (both expressed as a percentage) in the case of Romania. In our research we answer at the following questions? Is Okun’s rule valid in Romanian economy from 2000 to 2018? Does it hold over time? What is the relation between these variables? The empirical analysis showed the inverse relationship between them, confirming Okun’s findings, underlying that the rule is valid in the Romanian economy in the analyzed period, although the small value of R-squared made us interpret the results with caution, questioning somehow the sustainability of the law over time. Its validity can be seen more on short term analysis rather than on long term projections.http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2019/02/16-1.pdfunemployment rateGDPOkun’s laweconomic growth |
| spellingShingle | Lipară Daniel Gheorghiu Gabriela Barbu Corina Aurora Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 Ovidius University Annals: Economic Sciences Series unemployment rate GDP Okun’s law economic growth |
| title | Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 |
| title_full | Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 |
| title_fullStr | Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 |
| title_full_unstemmed | Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 |
| title_short | Is Okun’s Law Valid in Romanian Economy? An Empirical Approach of Unemployment Rate and GDP Relation from 2000 to 2018 |
| title_sort | is okun s law valid in romanian economy an empirical approach of unemployment rate and gdp relation from 2000 to 2018 |
| topic | unemployment rate GDP Okun’s law economic growth |
| url | http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2019/02/16-1.pdf |
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