Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran
GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in dif...
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2015-12-01
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| Series: | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| Subjects: | |
| Online Access: | https://joer.atu.ac.ir/article_1831_16bc4935c153e518ce1be66f76c0f9bf.pdf |
| _version_ | 1827398311123877888 |
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| author | reza akhbary hamid amadeh |
| author_facet | reza akhbary hamid amadeh |
| author_sort | reza akhbary |
| collection | DOAJ |
| description | GDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different forms such as difference version, gap version and production function form. Because of much debate that is done in recent years regarding the labour market, in this study with the aim of presenting scientific analysis of current conditions in Iranian economy, we used pesaran et al (2001) approach to estimate long-run and short-run Okun coefficients in an ARDL model and the data is for the period of 1974-2011. We found that there is long run relationship between variables in three models that we used. The results show that to reduse the unemployment rate to less than %10, GDP growth rate must be over %10. These results points to deterioration of current economic conditions. At the end, Analysis of Granger causality showed that there are unidirectional causality relationships in all three forms of Okun’s law. |
| first_indexed | 2024-03-08T19:27:50Z |
| format | Article |
| id | doaj.art-b41536f428094db6a7e8428f8800d59e |
| institution | Directory Open Access Journal |
| issn | 1735-210X 2476-6453 |
| language | fas |
| last_indexed | 2024-03-08T19:27:50Z |
| publishDate | 2015-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
| spelling | doaj.art-b41536f428094db6a7e8428f8800d59e2023-12-26T08:00:42ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532015-12-0115591251601831Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iranreza akhbary0hamid amadeh1کارشناسی ارشد گرایش محیط زیست از دانشکده اقتصاد دانشگاه علامه طباطبائیاستادیار دانشکده اقتصاد دانشگاه علامه طباطبائیGDP growth and unemployment rate are both important factors that characterize economies. Okun (1962) examined data about GDP and unemployment rate and found that there was a negative relationship between these two variables. After that, economists reexamined this relationship and presented it in different forms such as difference version, gap version and production function form. Because of much debate that is done in recent years regarding the labour market, in this study with the aim of presenting scientific analysis of current conditions in Iranian economy, we used pesaran et al (2001) approach to estimate long-run and short-run Okun coefficients in an ARDL model and the data is for the period of 1974-2011. We found that there is long run relationship between variables in three models that we used. The results show that to reduse the unemployment rate to less than %10, GDP growth rate must be over %10. These results points to deterioration of current economic conditions. At the end, Analysis of Granger causality showed that there are unidirectional causality relationships in all three forms of Okun’s law.https://joer.atu.ac.ir/article_1831_16bc4935c153e518ce1be66f76c0f9bf.pdfokun’s lawcointegrationbounds testardl modelgranger causality test |
| spellingShingle | reza akhbary hamid amadeh Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī okun’s law cointegration bounds test ardl model granger causality test |
| title | Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran |
| title_full | Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran |
| title_fullStr | Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran |
| title_full_unstemmed | Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran |
| title_short | Bounds Test Approach to Cointegration Analysis of the Relationship between Unemployment and Economic Growth: Evidence from Iran |
| title_sort | bounds test approach to cointegration analysis of the relationship between unemployment and economic growth evidence from iran |
| topic | okun’s law cointegration bounds test ardl model granger causality test |
| url | https://joer.atu.ac.ir/article_1831_16bc4935c153e518ce1be66f76c0f9bf.pdf |
| work_keys_str_mv | AT rezaakhbary boundstestapproachtocointegrationanalysisoftherelationshipbetweenunemploymentandeconomicgrowthevidencefromiran AT hamidamadeh boundstestapproachtocointegrationanalysisoftherelationshipbetweenunemploymentandeconomicgrowthevidencefromiran |