Unemployment and economic growth: Is there a relationship in the European Union?
| Autor: | Milen V. Velev |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
media_common.quotation_subject
05 social sciences Okun's law Regression analysis General Medicine Error correction model Hysteresis (economics) Negative relationship 0502 economics and business Unemployment Business cycle Economics media_common.cataloged_instance Demographic economics 050207 economics European union 050205 econometrics media_common |
| Zdroj: | Acta Oeconomica Pragensia. 26:12-29 |
| ISSN: | 1804-2112 0572-3043 |
| DOI: | 10.18267/j.aop.609 |
| Popis: | The aim of this paper is to investigate the relationship between unemployment and economic growth in the European Union and in individual European countries. This allows to determine what the effect on the unemployment rate will be when there is a change in output. The European Union (28 countries) quarterly data used is for the period from 2000Q1 to 2017Q3. Regression analysis, co-integration analysis and a vector error correction model have also been used. The relationship between the unemployment rate and economic growth in the EU-28 for the period examined in this study is less pronounced in comparison with the other countries. A negative relationship between economic growth and a change in the unemployment rate is obtained for all the countries in the European Union (28 countries). During each stage of the period studied, the effect of hysteresis on the labour market grew. The results from the statistical analysis show that the data on economic growth and the change in the rate of unemployment in the EU-28 are co-integrated. The validity of Okun's Law for the economy of the European Union is confirmed although during the period studied the European economy went through several phases of the economic cycle. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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