The Relationship between Real Output (Real GDP) and Unemployment Rate: An Analysis of Okun's Law for Eurozone
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Tarih
2019
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Sosyoekonomi Soc
Erişim Hakkı
info:eu-repo/semantics/openAccess
Özet
In this study, the relationship between economic growth and unemployment in the euro area (eurozone) is investigated in the light of Okun's Law by using annual panel data set covering the period 2000-2012. Besides panel error correction and panel integration methods are used to test the link between unemployment and growth rate, unemployment hysteresis was examined by using several non- stationary panel unit root techniques for in all countries included to the study. Findings of this study propose that the Okun's Law is valid. However, the cointegration coefficient is lower than the Okun's coefficient calculated for the United States and other studies which was done for developed countries. The US is included in the analysis as it has the strongest economy in the world. In addition, since growth and unemployment are more volatile in developing countries, they are included in the analysis in order to compare with developed countries.
Açıklama
Anahtar Kelimeler
Okun's Law, Unemployment, Economic Growth, Panel Cointegration, Eurozone
Kaynak
Sosyoekonomi
WoS Q Değeri
N/A
Scopus Q Değeri
N/A
Cilt
27
Sayı
40
