Asymmetry relationship between economic growth and unemployment rates in the Saudi economy: Application of Okun’s law during the period 1991–2017

Louail, Bilal; Riache, Siham

doi:10.21833/ijaas.2019.10.013

Cited by 15 publications

(16 citation statements)

References 14 publications

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“…Secondly, as for the short term only, the ECT t-1 statistic is negative (-0.034) and has a statistical significance at the level of 1%. There is a negative and significant impact of the GDP on unemployment rates in the short term, consistent with the study by Louail and Riache (2019) because the policies applied to revive the Algerian economy gave the labour market importance. However, the lack of control and discipline prevented the continuation of the development of the labour market.…”

Section: Conclusion and Discussionsupporting

confidence: 86%

Relationship between Economic Growth and Unemployment Rates in the Algerian Economy: Application of Okun’s Law during 1991–2019

Louail

Benarous

2021

OMEE

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This paper aims to examine the Algerian economy by applying Okun’s law to study the impact of real GDP on unemployment rates and examine the impact of labour market protection policies on Okun’s coefficients. The annual data on the Algerian economy for the period 1991–2019 were used. The autoregressive distributed lag (ARDL) bounds testing technique model was used in conjunction with the gap version for Okun’s coefficients. The empirical results show that Okun’s law operates in Algeria’s economy. Coefficients estimated using the gap version led to the conclusion that there was a negative and significant impact of the GDP gap on unemployment rates. Though there was a decline in unemployment as GDP increased, the rise in employment was very weak for each 1% increase in the GDP. These findings should be of significant interest to regulators and policymakers in the Algerian economy, practitioners and academic researchers, international and national investors, managers and any other groups interested in the labour market in the Algerian economy and the labour markets of other developing economies. The paper provides the real GDP’s effect on unemployment rates in Algeria by releasing the gap version for Okun’s coefficient. Also, it provides evidence that increased labour market protection mitigates the adverse effects of a decrease in output growth rate on employment.

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Section: Conclusion and Discussionsupporting

confidence: 86%

Relationship between Economic Growth and Unemployment Rates in the Algerian Economy: Application of Okun’s Law during 1991–2019

Louail

Benarous

2021

OMEE

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“…These findins are consistant with Arabaci and Arabaci (2018). Louail and Riache (2019) have also analyzed the asymmetric nature of okuns Law in case of developing and particularly for Saudi Arabia. This study used ARDL bound testing model, and confirmed the existence of negative relationship between economic growth and unemployment through gap version.…”

mentioning

confidence: 89%

Validity and Asymmetry of Okun’s Law: Evidence from Asian Economies

2021

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This study investigates the validity and asymmetry of output-unemployment relationship for three groups: high income, upper middle income and lower middle income Asian Economies over the period of 1980-2018. This study investigates whether the behavior of labor markets is rigid or flexible in these economies over the sample period. By using the Hodrick and Prescott filter, the study finds a statistically significant relationship between cyclical output and cyclical unemployment; hence provides the evidence of the existence of Okun’s Law with more sensitive results for the lower middle economies as compared to other groups of countries. The study also discovers the evidence of asymmetric relationship of output-unemployment during the recessionary and expansionary period of economic growth. Although the value of coefficient varies due to asymmetry but the variation is found to be small across the three groups of the countries. The study concludes that sample economies have rigid labor markets indicating the persistence of structural unemployment.

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“…Sebaliknya apabila perkembangan teknologi mengarah pada teknik padat modal, maka pertumbuhan ekonomi tidak diikuti dengan kenaikan employment sehingga tingkat pengangguran tidak mengalami penurunan. Sejumlah penelitian menunjukkan bahwa pertumbuhan ekonomi diikuti dengan penurunan pengangguran (Chand et al, 2018;Louail & Riache, 2019), sedangkan hasil penelitian lainnya menyatakan bahwa pertumbuhan ekonomi tidak berkaitan dengan penurunan angka pengangguran (Kreishan, 2011;Sadiku et al, 2015).…”

Section: Pendahuluanunclassified

Determinan Tingkat Pengangguran Terbuka Di D.I. Yogyakarta

Susanto

pratama

2021

Develop.

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Studi ini bertujuan untuk mengetahui determinan pengangguran terbuka di Daerah Istimewa Yogyakarta. Penelitian ini menggunakan data sekunder yang diterbitkan oleh Badan Pusat Statistik tahun 2010-2018. Data tersebut mencakup tingkat pengangguran terbuka, pertumbuhan ekonomi, upah minimum kabupaten/kota, dan modal manusia. Penelitian ini menggunakan regresi panel berdasarkan Fully Modified Ordinary Least Square (FMOLS) dan Dynamic Ordinary Least Square (DOLS). Hasil penelitian menunjukkan bahwa pertumbuhan ekonomi berdampak negatif, sedangkan upah minimum kabupaten/kota berdampak positif terhadap pengangguran terbuka. Peningkatan pertumbuhan ekonomi mendorong penurunan pengangguran terbuka, sedangkan kenaikan upah minimum kabupaten diikuti oleh kenaikan tingkat pengangguran terbuka. Sementara itu, modal manusia tidak berpengaruh pada tingkat pengangguran terbuka akibat rendahnya rata-rata lama sekolah. Untuk itu, pemerintah perlu meningkatkan sumber daya manusia melalui wajib belajar 12 tahun.

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Asymmetry relationship between economic growth and unemployment rates in the Saudi economy: Application of Okun’s law during the period 1991–2017

Cited by 15 publications

References 14 publications

Relationship between Economic Growth and Unemployment Rates in the Algerian Economy: Application of Okun’s Law during 1991–2019

Relationship between Economic Growth and Unemployment Rates in the Algerian Economy: Application of Okun’s Law during 1991–2019

Validity and Asymmetry of Okun’s Law: Evidence from Asian Economies

Determinan Tingkat Pengangguran Terbuka Di D.I. Yogyakarta

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