Theoretical and Applied Economics
No. 10 / 2013 (587)
Modeling the relationship between GDP and unemployment for Okun’s law specific to Pakistan during 1976-2010
McGill University, Montreal, Canada
Abdul SABOOR
PMAS Arid Agriculture University Rawalpindi, Pakistan
Sarfraz Ahmad MIAN
PMAS Arid Agriculture University Rawalpindi, Pakistan
Aftab ANWAR
PMAS Arid Agriculture University Rawalpindi, Pakistan
Abstract. Okun’s law postulates a negative relationship between movements of the unemployment rate and the real gross domestic product (GDP). This article investigates the link between the real GDP growth and unemployment, as described by Okun’s law. For this purpose we have used time series annual data during the period 1976 to 2010 and used unit root test, Hodrick–Prescott filter and least square method to find the relationship between GDP growth and unemployment in Pakistan. The empirical analysis shows that a rise of one percentage point of unemployment is associated with a decline of 0.36 percentage point of real GDP growth.
Contents
The Balkan balneotherapy product – an approach from the destination marketing perspective
A new vision on competitiveness within the post-crisis economy. Causes, evolutions and possible innovative solutions to fight against the undesirable effects of the economic crisis
Estimating the size of Romanian shadow economy using Gutmann’s simple currency ratio approach
Motivation of the public employee in Romania in the context of the economic crisis
Urban revitalisation in the creative economy and the development of the creative society
Modeling the relationship between GDP and unemployment for Okun’s law specific to Pakistan during 1976-2010
Education for sustainability – a prerequisite for post-crisis economic competitiveness with possible inference for Romania
Forecasting of the economic crisis using business cycles patterns
The role of the human capital and investment in human capital within the sustainable socio-economic development. How labour force migration affects competitiveness?
Costing systems design for sustainability