A Nonlinear Relationship: Unemployment and Economic Growth (Construction Sector) in Spain, 1995.1–2012.2

Loría, Eduardo; Salas, Emmanuel

doi:10.1007/s11294-014-9496-6

Cited by 3 publications

(2 citation statements)

References 21 publications

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“…Okun's argument is that there is a bidirectional causal relationship between unemployment and economic growth (Babalola, Saka & Adenuga, 2013;Loría & Salas, 2014). Therefore, this study also determined the direction of causality between unemployment rate and economic growth.…”

Section: Methodsmentioning

confidence: 84%

“…Okun's law assumes that economic shocks affect output asymmetrically before influencing unemployment (Lee, Hu, Li & Tsong, 2013). It posits that the behaviour of unemployment in the economy acts in the Keynesian manner to the point that it suggests that failure to utilise productive resources reduces the rate of economic growth in the future (Loría & Salas, 2014).…”

Section: Introductionmentioning

confidence: 99%

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Investigating Okunâ€™s Law in Nigeria through the Dynamic Model

Adeyeye

Odeleye

Aluko

2018

JEBS

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Unemployment is a persistent challenge for countries, especially the developing ones. Nigeria as a developing country faces a herculean task reducing the increasing spate of joblessness amongst her citizens. Okunâ€™s law explains the relationship between unemployment and economic growth in an economy. This study therefore investigates Okunâ€™s law in Nigeria between 1985 and 2015 through the dynamic model. The generalized method of moments estimation result reveals that that present and past output growth are negatively related to unemployment rate. However, only past output growth has a significant effect on unemployment rate. It also shows that past unemployment rate is significantly and positively associated with present unemployment rate. The Toda-Yamamoto Granger non-causality test finds that there is no causality between unemployment and economic growth. This study presents evidence to partially support Okunâ€™s law of inverse relationship between unemployment and output growth and suggests that promoting economic growth can be a policy tool for reducing unemployment rate in Nigeria.

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Section: Methodsmentioning

confidence: 84%

Section: Introductionmentioning

confidence: 99%