The Hypothesis of Jobless Economic Growth in the Global Triad Countries

Abstract

The aim of the study is to analyze the hypothesis of jobless economic growth in economic theory and in the Global Triad countries (U.S. , EU-15, Japan, China , India). In the article the research method based on the literature study in the field of macroeconomics and international finance were used, as well as econometric methods (Ordinary Least Squares). All the statistics used in the study had an annual frequency and covered the period from 1990 to 2012. These data came from the statistical database of the Business Membership and Research Association – The Conference Board Total Economy Database. On the basis of the study the phenomenon of jobless economic growth in China and India was revealed. However, in the case of the USA, the EU-15 and Japan the positive impact of economic growth on changes in employment was confirmed.

Challenges of the Output-Employment Growth Imbalance in Transition Economies

“…Source: own calculation Although the analysis in this paper does not include some advanced economies to make a kind of reference point, it is helpful to compare the estimation results from Table 4 with some of the previous research dealing with developed economies. For instance, Misztal (2014) applied a similar methodology to estimate the employment elasticities in the Global Triad countries. He reveals that the value of the coefficient in the 1990-2012 period in the USA, EU-15, and Japan were 0.62, 0.50, and 0.25, respectively.…”

“…Kapsos (2005) provides an extensive analysis of employment elasticities in developed and transition countries to investigate the impact of employment and productivity on economic growth in the function of poverty reduction. In similar research, Misztal (2014) estimates the employment elasticities in the Global Triad Countries (US, EU-15, Japan), China and India, aiming to examine the sustainability of the jobless growth hypothesis in these countries.…”