A Link of Unemployment Rate between Taiwan and the United States

Tsai-Lun Cho and Cheng-Wen Lee
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Tsai-Lun Cho: Department of Mobile Technology, Toko University, Taiwan / Department of Information Management, Chung Yuan Christian University, Taiwan
Cheng-Wen Lee: Department of International Business, Chung Yuan Christian University, Taiwan

Economia Internazionale / International Economics, 2019, vol. 72, issue 3, 313-320

Abstract: Unemployment problem is a pressing issue in many countries, but literature on the aggregate relationship between exchange and unemployment rates in Taiwan (TW) is lacking. We investigated the unemployment problem in relation to another country through the bilateral exchange rate and explored the link of unemployment rate between TW and the United States (US). Results corroborate that a 1% increase in the US unemployment rate results in an average of an 0.34%–0.38% increase in the TW unemployment rate. La relazione tra il tasso di disoccupazione di Taiwan e degli Stati Uniti Il problema della disoccupazione è importante per molti paesi. Ciononostante la letteratura sulla relazione aggregata tra cambio e tasso di disoccupazione a Taiwan è carente. In questo studio abbiamo analizzato questo problema tramite il tasso di cambio bilaterale ed abbiamo preso in considerazione la relazione tra il tasso di disoccupazione a Taiwan e negli USA. I risultati confermano che un incremento dell’1% della disoccupazione negli USA si associa in media ad un incremento dello 0.34-0.38% del tasso di disoccupazione a Taiwan.

Keywords: Exchange Rate; Transmission Effect; Unemployment Rate (search for similar items in EconPapers)
JEL-codes: F31 J60 (search for similar items in EconPapers)
Date: 2019
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