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Trade Openness, Economic Growth and Unemployment Reduction in Arab Region

Author

Listed:
  • Taleb Awad-Warrad

    (Faculty of Business, Middle East University, Jordan.)

Abstract

The main objective of this research paper is to empirically evaluate the theoretical relationship between unemployment and some key macroeconomic determinants including among others trade openness policy and real economic growth for Arab countries. The main question of the study is whether achieving economic growth and liberalizing international trade contribute to creating more jobs and hence resulting in less unemployment. The study utilizes a cross time series sample coving the period 1990-2015 for seven selected Arab countries. The study estimated the unemployment model using panel WLS. The study provides evidence of large and significant impact of trade openness on unemployment rates in the selected Arab countries when taken as one pooled group. On the other hand, as expected real economic growth affected favorably unemployment rates in this group of countries.

Suggested Citation

  • Taleb Awad-Warrad, 2018. "Trade Openness, Economic Growth and Unemployment Reduction in Arab Region," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 8(1), pages 179-183.
    • Handle: RePEc:eco:journ1:2018-01-24
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    References listed on IDEAS

    as
    1. Giray Gozgor, 2014. "The impact of trade openness on the unemployment rate in G7 countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(7), pages 1018-1037, October.
    2. Hasan, Rana & Mitra, Devashish & Ranjan, Priya & Ahsan, Reshad N., 2012. "Trade liberalization and unemployment: Theory and evidence from India," Journal of Development Economics, Elsevier, vol. 97(2), pages 269-280.
    3. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    4. Ikechukwu D Nwaka & Kalu E Uma & Gulcay Tuna, 2015. "Trade openness and unemployment: Empirical evidence for Nigeria," The Economic and Labour Relations Review, , vol. 26(1), pages 117-136, March.
    5. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    Cited by:

    1. Shuaibu, Mohammed & Ohams, Sandra Uju, 2024. "The Nexus Between Trade Openness, Gender Gaps and Unemployment in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 12(3), September.
    2. Philip Nwosa & Sunday Keji & Samuel Adegboyo & Oluwadamilola Fasina, 2020. "Trade Openness And Unemployment Rate In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(2), pages 52-62, September.
    3. Halimahton Borhan & Abdul Rahim Ridzuan & Mohamad Idham Md Razak & Rozita Naina Mohamed, 2023. "The Dynamic Relationship between Energy Consumption and Level of Unemployment Rates in Malaysia: A Time Series Analysis Based on ARDL Estimation," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 13(2), pages 207-214, March.

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    Keywords

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    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F1 - International Economics - - Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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