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The Relationship between GDP and Unemployment: Evidence from MENA Countries

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  • Mehdi Haririan Mehmet Huseyin Bilgin Gokhan Karabulut

    (Bloomsburg University, USA Kadir Has University, Turkey Istanbul University, Turkey)

Abstract

This paper investigates the long-run relationship between GDP growth and unemployment for the following selected MENA countries: Turkey, Egypt, Israel, and Jordan. Although the results of previous studies in this area are somewhat ambiguous, the literature has traditionally shown a negative relationship between GDP growth and unemployment. In this paper, we expect a negative long-run relationship between GDP growth and unemployment to exist. Therefore, we predict that high rates of GDP growth will lead to a reduction in unemployment. The results of our cross-country comparison model support a negative relationship between these variables.

Suggested Citation

  • Mehdi Haririan Mehmet Huseyin Bilgin Gokhan Karabulut, 2010. "The Relationship between GDP and Unemployment: Evidence from MENA Countries," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 13(1), pages 17-28, May.
    • Handle: RePEc:zag:zirebs:v:12:y:2010:i:1:p:17-28
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    Cited by:

    1. Samson Adeoluwa Adewumi & Elsabe Keyser, 2020. "Towards Addressing Employment Casualization: Unearthing Factors Limiting Labor Union Struggle in the Food Processing Industry, Lagos," Eurasian Journal of Business and Management, Eurasian Publications, vol. 8(2), pages 124-136.
    2. Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Does unemployment matter?," MPRA Paper 118349, University Library of Munich, Germany.
    3. Md Mazharul Islam & Majed Alharthi & Md Wahid Murad, 2021. "The effects of carbon emissions, rainfall, temperature, inflation, population, and unemployment on economic growth in Saudi Arabia: An ARDL investigation," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-21, April.
    4. Driouchi, Ahmed, 2015. "Threats to Skills of Unemployed Qualified Labor in Arab Economies," MPRA Paper 67361, University Library of Munich, Germany.
    5. Driouchi, Ahmed, 2014. "Unemployment Persistence & Risks of Skill Obsolescence in Arab Countries," MPRA Paper 53793, University Library of Munich, Germany.

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