Empirical Evidence on Inflation and Unemployment in the Long Run

Haug, Alfred A.; King, Ian

doi:10.2139/ssrn.1926475

Cited by 12 publications

(8 citation statements)

References 63 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Also, the positive inflation rate (though not significant) is against the theoretical proposition of the Phillips Curve Hypothesis, which states that unemployment and inflation rates are negatively related. This outcome seems rather not peculiar to us, as it is already on record that most developing countries, especially those of the African continent, suffer rising unemployment rates in the face of the high inflation rate, a phenomenon known as stagflation (Haug & King, 2011). Thus, this finding stands in contrast to that of Ebaidalla (2014), which concluded that the Phillips Curve Hypothesis is valid for the SSA countries.…”

Section: Resultsmentioning

confidence: 93%

Ending youth unemployment in sub‐saharan Africa: Does ICT development have any role?

Metu

Ajudua

Eboh

et al. 2020

African Development Review

View full text Add to dashboard Cite

This study investigates the role of information and communication technology (ICT) development towards ending youth unemployment in the 48 sub-Saharan Africa (SSA) countries from 1991 to 2018. Using a dynamic panel modelling technique, the study employed the instrumental variable (IV) regression, within the framework of the system generalized method of moment (GMM-SYS) estimator. The results show that the low level of mobile phone subscriptions, broadband internet subscriptions, Wi-Fi internet subscriptions and internet bandwidth exert a significant negative effect on youth unemployment. This means that ICT development reduces youth unemployment in SSA. Also, it was found that the number of households with access to computers has a negative but insignificant effect on youth unemployment; this shows the ineffective role of household computers in reducing youth unemployment in SSA. Based on these findings, we recommend among other things that, for government to optimize the expanding youth population, there is the need for further telecommunication reforms to reduce the cost of mobile phone technologies and improved ultra-modern internet facilities in the region.

show abstract

Section: Resultsmentioning

confidence: 93%

Ending youth unemployment in sub‐saharan Africa: Does ICT development have any role?

Metu

Ajudua

Eboh

et al. 2020

African Development Review

View full text Add to dashboard Cite

show abstract

“…While, the study by Pallis (2006) for 10 EU countries indicated that application of common policies across economies may be questionable because of the different effect of these policies on inflation and unemployment. The study by Haug and King (2011) on US affirmed the proposition of Philips curve of a negative relationship between unemployment and inflation. On the hand, Umoru and Anyiwe (2013) using a vector error correction approach to establish the dynamic relationship between inflation and unemployment in Nigeria found it to be positive.…”

Section: Empirical Reviewmentioning

confidence: 76%

Macroeconomic Determinants of Labour Market Outcomes in Economic Community of West African States

Folawewo¹,

Adeboje²

2014

The Indian Economic Journal

View full text Add to dashboard Cite

“…Thus, based on the Phillip curve, it is expected that a negative relationship should exist between inflation rate and unemployment rate. The study of Furuoka and Munir (2014), Li and Liu (2012), Vermeulen (2015) and Yelwa, David, and Awe (2015), Eita and Ashipala (2010), Aminu and Anono (2012), Afzal and Awais (2012) and Haug and King (2011) were in support of the Phillip curve.…”

Section: Inflation Ratementioning

confidence: 89%

The determinants of unemployment rate in developing economies: does banking system credit matter?

Azolibe

Dimnwobi²,

Uzochukwu-Obi³

2022

JEAS

View full text Add to dashboard Cite

PurposeIn developing countries, banks play a major role by acting as a conduit for the effective mobilization of funds from the surplus sectors of an economy for onward lending to the deficit sectors for productive investments that will in turn increase the level of employment and economic growth. There has being a rising trend in unemployment rate in Nigeria and South Africa and hence, the need for the study to assess the effectiveness of banking system credit in curbing unemployment rate by making a comparative analysis of Nigeria and South Africa covering the period of 1991–2018.Design/methodology/approachThe study employed the unit root test, Johansen cointegration test, vector error correction model and VAR impulse response function in determining the relationship between the variables.FindingsThe major findings revealed that banking system credit matters in curbing unemployment rate in South Africa than in Nigeria. Also, other macroeconomic factors such as lending rate, inflation rate, Government expenditure and population growth were significant enough in influencing unemployment rate in South Africa than in Nigeria. Foreign direct investment was a significant factor in reducing unemployment rate in Nigeria than in South Africa. The cointegration test showed a long-term relationship between the variables in both countries while the speed of adjustment coefficient of the vector error correction model is faster in South Africa than in Nigeria.Originality/valuePrevious empirical studies on the relationship between banking system credit and unemployment rate have focused much on other regions such as Asia and Europe. Thus, the study is unique as it focused on the African region and also made a comparative analysis by testing the Keynesian theory of employment, interest and money on two emerging African economies which are Nigeria and South Africa.

show abstract

Empirical Evidence on Inflation and Unemployment in the Long Run

Abstract: We examine the relationship between inflation and unemployment in the long run, using quarterly US data from 1952 to 2010. Using a band-pass filter approach, we find strong evidence that a positive relationship exists, where inflation leads unemployment by some 3 to 3

Cited by 12 publications

References 63 publications

Ending youth unemployment in sub‐saharan Africa: Does ICT development have any role?

Ending youth unemployment in sub‐saharan Africa: Does ICT development have any role?

Macroeconomic Determinants of Labour Market Outcomes in Economic Community of West African States

The determinants of unemployment rate in developing economies: does banking system credit matter?

Contact Info

Product

Resources

About