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Interactions between Economic Growth and Unemployment Condition in Asian Region

Author

Listed:
  • Syh Han Ang

    (Faculty of Management and Economics, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia)

  • Nanthakumar Loganathan

    (Faculty of Management and Economics, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia)

Abstract

This study is aimed to examine the relationship between GDP growth and unemployment rate for developed and developing Asian countries over the period 1980-2010. This study has applied the Okun’s law framework to estimate the co-integration dynamic and weak or strong Granger-causality for relationship between GDP growth and unemployment rate with ARDL approach. The results found that developed and developing Asian countries have achieved the negative sign for the long run coefficient as well as the short run coefficient between Unemployment rate and GDP growth. Hence, some developed and developing Asian countries still robust in the theory Okun but the coefficient values are higher than original Okun’s law. Therefore, the new Okun’s framework in the Asian macroeconomics performance is being existed in the developed and developing Asian countries.

Suggested Citation

  • Syh Han Ang & Nanthakumar Loganathan, 2013. "Interactions between Economic Growth and Unemployment Condition in Asian Region," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(12), pages 135-146, December.
    • Handle: RePEc:ijr:journl:v:1:y:2013:i:12:p:135-146
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    More about this item

    Keywords

    Cointegration; Granger causality; Okun’s law;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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