The Impact of Unemployment on Economic Growth in China

Ellen Karikari-Apau and Wilson Abeti

MPRA Paper from University Library of Munich, Germany

Abstract: Economic growth which is considered as one of the best indicator of measuring the robustness of every economy is essential in understanding its relationship with unemployment which is an important macroeconomic indicator that reflects the incompetence of any economy to make full use of its human resources. Hence, a macro-economic secondary and time series data was extracted from the World Development Indicator (WDI) for the period of 1991-2018 in China. In conducting the econometric analysis of the study, both the Augmented Dickey-Fuller Test and Phillips Perron Test were employed to test and confirm the stationary level of the variables of study; the Autoregressive Distributed Lagged (ARDL) cointegration and the ARDL Bounds test were employed to test for the short-run and the long-run cointegration of the variables of study since both variable were stationary at first difference I (1). The finding of the study reveals that there are negative short-run and a long-run relationship between unemployment and economic growth. However, Granger causality Test also reveals that both unemployment and economic growth do not impact each other.

Keywords: Granger causality; Economic growth; Unemployment rate; Stationarity and Cointegration (search for similar items in EconPapers)
JEL-codes: F63 O11 (search for similar items in EconPapers)
Date: 2019-05-24
New Economics Papers: this item is included in nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/96192/5/MPRA_paper_96192.pdf original version (application/pdf)

Related works:
Working Paper: The Impact of Unemployment on Economic Growth in China (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96192

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().