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Economic Freedom and Unemployment in Emerging Market Economies

Author

Listed:
  • Bayar, Yilmaz

    () (Usak University, Turkey)

Abstract

Economic freedom has also increased in parallel with the accelerating globalization process as of mid-1980. This study investigates the relationship among unemployment, economic freedom and gross capital formation in 20 emerging market economies during 1995-2014 period using Westerlund-Durbin-Hausman (2008) cointegration test and Dumitrescu and Hurlin (2012) causality test. We found that economic freedom had no statistically significant impact on unemployment, but gross capital formation had negative impact on unemployment in the long run. Furthermore, we found a bidirectional causality between unemployment and economic freedom.

Suggested Citation

  • Bayar, Yilmaz, 2016. "Economic Freedom and Unemployment in Emerging Market Economies," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 11(1), pages 5-12, June.
  • Handle: RePEc:rse:wpaper:v:11:y:2016:i:1:p:5-12
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    References listed on IDEAS

    as
    1. Markus Eberhardt & Francis Teal, 2008. "Modeling Technology and Technological Change in Manufacturing: How do Countries Differ?," CSAE Working Paper Series 2008-12, Centre for the Study of African Economies, University of Oxford.
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    7. Gwartney, James & Lawson, Robert, 2003. "The concept and measurement of economic freedom," European Journal of Political Economy, Elsevier, vol. 19(3), pages 405-430, September.
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    More about this item

    Keywords

    economic freedom; gross capital formation; unemployment; emerging market economies; panel data analysis;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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