| Popis: |
In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region. |
