Unemployment and its Impact on Economic Growth in the European Union

Çetin, Murat; Günaydın, Davuthan; Cavlak, Hakan; Topçu, Birol

doi:10.4018/978-1-4666-7308-3.ch002

Cited by 11 publications

(5 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The Fixed Effect Model reveals that economic growth positively impacts the open unemployment. Therefore, the findings are similar to those of Huruta, Sasongko, and Saputri (2020), Cetin, Gunaydın, Cavlak, and Topcu (2015), Abdul-Khaliq, Soufan, and Shihab (2014), Al-hosban and Edienat (2017), Alamro and Al-dala'ien (2016), Soylu, Çakmak, and Okur (2018) which prove that economic growth has the negative impact on the unemployment rate. However, these findings are not in line with Okun's Law assumption, which explains that open unemployment has a negative and significant effect on economic growth.…”

Section: Discussionsupporting

confidence: 81%

Reexamination of Okun's law: Empirical analysis from Panel Granger Causality

Sasongko¹,

Putri²,

Huruta³

et al. 2020

Industrija

View full text Add to dashboard Cite

This study aims to confirm the existence of Okun's coefficients in Indonesia. Authors conducted panel data of 34 provinces in Indonesia for the period from 2014 to 2019, obtained from the Central Bureau of Statistics. The data were analyzed by using the panel data model and Panel Granger Causality. The Panel Granger causality analysis results show that there was one-way causality between the economic growth and the unemployment. It was caused by several influencing factors, such as education level, population, and employment opportunities. Based on the Fixed Effect Model and Panel Granger Causality results, authors conclude that Okun's Law has not been proven for 34 provinces in Indonesia.

show abstract

Section: Discussionsupporting

confidence: 81%

Reexamination of Okun's law: Empirical analysis from Panel Granger Causality

Sasongko¹,

Putri²,

Huruta³

et al. 2020

Industrija

View full text Add to dashboard Cite

show abstract

“…UE has become of late, a grave economic and social problem in many Euro area countries. Literature suggests that unemployment decreases economic growth in these countries (Cetin, Gunaydın, Cavlak, & Topcu, ). Our attempts to include life expectancy, government expenditure and education (specifically, secondary school enrolment) resulted in too many missing observations.…”

Section: Data and Empirical Strategymentioning

confidence: 99%

Thresholds of financial development in the Euro area

Swamy

Dharani

2019

World Economy

View full text Add to dashboard Cite

We analyse the dynamics of financial development and economic growth in the Euro area as these countries went through considerably higher levels of financial development. Using a balanced panel data of 38 years from 1980 to 2018, we offer new evidence on the finance–growth nexus. We show the presence of non‐linearity as there is an inverted U‐shaped relationship between finance and growth in the long run. Estimating the thresholds in the finance–growth nexus, we notice a threshold effect at 74%–86% of GDP for domestic credit; 51% of GDP for stock turnover ratio; and 65% of GDP for stock market capitalisation. We notice that exceeding the threshold causes deceleration in economic growth as too much finance results in crowding out effect for productive economic activities. The panel Granger causality test results show that financial development should be associated with optimal growth performance. These findings in the Euro area provide some useful policy implications to the emerging and developing economies in designing their financial development strategies.

show abstract

“…Other determinants of economic growth have also been identified in literature. The factors include employment/unemployment (Cetin et al, 2015), education (Cetin & Dogan, 2015), health and health expenditure (Beylik et al, 2022; Çetin & Ecevit, 2010), government size (Cetin, 2017), information technology (Magazzino et al, 2021) among others.…”

Section: Literature Reviewmentioning

confidence: 99%

Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Adebayo

Bekun

Öztürk

et al. 2023

Natural Resources Forum

View full text Add to dashboard Cite

This study corroborates the importance of United Nations Sustainable Development Goal 7 (SDG‐7), intended to ensure access to affordable, reliable, sustainable energy for all, and SDG‐8, designed to promote decent work and sustainable economic growth. This article is motivated by the highlighted SDGs and empirically explores the long‐run and causality relationship between energy consumption, urbanization, trade openness, and economic growth for annual frequency data from 1965 to 2021 for the case of Mexico. To this end, we leverage the use of fully modified ordinary least squares, dynamic ordinary least squares, and canonical regression estimation methods, while for the direction of causality, the gradual shift and wavelet coherence methods are used. According to the Autoregressive distributed lag (ARDL), the bounds test traces a long‐run relationship between the outlined variables over the sampled period. Empirical evidence validates the energy‐induced growth hypothesis. This result resonates with the causality analysis, where energy consumption drives economic growth one way in Mexico. This suggests that Mexico cannot embark on energy‐conservative policies, as such actions will hurt economic progress. In addition, unidirectional causality is seen between urbanization, trade openness, and economic growth. These findings have far‐reaching implications for economic growth and macroeconomic indicators in Mexico. More insights are highlighted in the concluding section.

show abstract

Unemployment and its Impact on Economic Growth in the European Union

Cited by 11 publications

References 15 publications

Reexamination of Okun's law: Empirical analysis from Panel Granger Causality

Reexamination of Okun's law: Empirical analysis from Panel Granger Causality

Thresholds of financial development in the Euro area

Another outlook into energy‐growth nexus in Mexico for sustainable development: Accounting for the combined impact of urbanization and trade openness

Contact Info

Product

Resources

About