Does the Phillips Curve Exist? Evidence from the Middle East and North African Countries
Muhammad Azam,
Rasheed Khan () and
Saleem Khan ()
Additional contact information
Rasheed Khan: Department of Economics, Faculty of Business and Economics, Abdul Wali Khan University Mardan, KP-Pakistan
Saleem Khan: Department of Economics, Faculty of Business & Economics, Abdul Wali Khan University Mardan, Khyber Pakhtunkhwa, Pakistan
Journal of Central Banking Theory and Practice, 2022, vol. 11, issue 3, 59-78
Abstract:
This study aims to explore the validity of Phillips curve for eight (8) countries from the Middle East and North Africa (MENA), namely Algeria, Egypt, Jordan, Kuwait, Malta, Morocco, Saudi Arabia, and Tunisia over the period of 1991–2019. The panel autoregressive distributed lag/ pooled mean group (ARDL/PMG) estimation is employed in the study because of the nature of data. The results of ARDL/ PMG reveal that there is no trade-off between inflation and unemployment rates in the panel of eight MENA countries in the long run, while there is a negative but insignificant relationship between these two variables in the short run. In addition, the trade-off between inflation and unemployment for each of the panel’s countries has also been investigated. The empirical results indicate that there is no trade-off in the short run as the estimated coefficients found are statistically insignificant. Hence, it is concluded that there is no empirical evidence of the trade-off between inflation and unemployment rates in MENA countries.
Keywords: Inflation rates; unemployment rates; Phillips curve; ARDL/PMG; MENA-8. (search for similar items in EconPapers)
JEL-codes: E24 E31 N15 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.cbcg.me/repec/cbk/journl/vol11no3-3.pdf (application/pdf)
Related works:
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:cbk:journl:v:11:y:2022:i:3:p:59-78
Access Statistics for this article
More articles in Journal of Central Banking Theory and Practice from Central bank of Montenegro Contact information at EDIRC.
Bibliographic data for series maintained by ().