Re-examination of the impact of economic growth on unemployment in Algeria using Gordon’s dynamic law
Joint Authors
Talib, Sumayyah Chahinez
Si Muhammad, Kamal
Source
Issue
Vol. 8, Issue 2 (31 Dec. 2018), pp.197-204, 8 p.
Publisher
University of Eloued Faculty of Economics Commercial and Management Sciences
Publication Date
2018-12-31
Country of Publication
Algeria
No. of Pages
8
Main Subjects
Economics & Business Administration
Topics
Abstract EN
The purpose of the present paper is to evaluate the effect of economic growth on unemployment, through both short and long-term and this within the Algerian economy during the 1985-2015 period.
Gordon’s dynamic law was applied so as to achieve this purpose, this law requires separating unemployment and the general trend of the long-term economic growth rates, in order to respect this condition.
Hodrick Prescott filter was used, this latter being one of the most important techniques that allow determining the long-term trend and how both GDP as well as unemployment rates vary around the natural rates.
Thereafter, ARDL Bounds Testing Approach to Co-integration test was used, the research conducted that economic growth and unemployment tend to the same trend.
Except during certain periods in which an inverse relationship between the two variables is noticed, which means that economic growth rates in Algeria do not diminish unemployment rates.
As second step of the research, the causal relationship between the two variables using Granger Causality Test.
The conclusion was the existence of causal relationship in the short-term from unemployment rates to gross domestic Product and this with a signification of 1%.
The Cross Correlation Correlogam showed the existence of a major relationship between product rates and unemployment rates, during the period (T=0) the correlation being 75%.
In addition to that product and unemployment rates are equal during this period
American Psychological Association (APA)
Talib, Sumayyah Chahinez& Si Muhammad, Kamal. 2018. Re-examination of the impact of economic growth on unemployment in Algeria using Gordon’s dynamic law. Economic Visions Review،Vol. 8, no. 2, pp.197-204.
https://search.emarefa.net/detail/BIM-861776
Modern Language Association (MLA)
Talib, Sumayyah Chahinez& Si Muhammad, Kamal. Re-examination of the impact of economic growth on unemployment in Algeria using Gordon’s dynamic law. Economic Visions Review Vol. 8, no. 2 (2018), pp.197-204.
https://search.emarefa.net/detail/BIM-861776
American Medical Association (AMA)
Talib, Sumayyah Chahinez& Si Muhammad, Kamal. Re-examination of the impact of economic growth on unemployment in Algeria using Gordon’s dynamic law. Economic Visions Review. 2018. Vol. 8, no. 2, pp.197-204.
https://search.emarefa.net/detail/BIM-861776
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 204
Record ID
BIM-861776