Original scientific paper

The Relationship between GDP and Unemployment: Evidence from MENA Countries

Mehdi Haririan ; Bloomsburg University, USA
Mehmet Huseyin Bilgin ; Kadir Has University, Turkey
Gokhan Karabulut ; Istanbul University, Turkey

Abstract

This paper investigates the long-run relationship between GDP growth and unemployment for the following selected MENA countries: Turkey, Egypt, Israel, and Jordan. Although the results of previous studies in this area are somewhat ambiguous, the literature has traditionally shown a negative relationship between GDP growth and unemployment. In this paper, we expect a negative long-run relationship between GDP growth and unemployment to exist. Therefore, we predict that high rates of GDP growth will lead to a reduction in unemployment. The results of our cross-country comparison model support a negative relationship between these variables.

Keywords

growth; unemployment; Okun’s Law; MENA; Turkey

Hrčak ID:

78713

URI

https://hrcak.srce.hr/78713

Publication date:

1.5.2010.

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