Modeling the nonlinear dynamic relationship between unemployment and economic growth : study case Arab countries

Abstract EN

The aim of this study was to measure the nonlinear dynamic relationship between unemployment and economic growth in Arab countries during the period 1976 to 2018 using the Markov switching regression models.

The results of this study show that there is an inverse relationship between unemployment rate and economic growth.

It can also be deduced that both series are complementary to the first degree (stability after the first difference).

According to matrix transition, in the period, this probability increases to more than 91% in the previous years.