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The Long Run Effects between Unemployment and Economic Growth in Selected SAARC Countries

Ghamz-e-Ali Siyal (), Adeel Ahmed (), Arshad Aziz () and Khalid Zaman ()
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Ghamz-e-Ali Siyal: Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan
Adeel Ahmed: Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan
Arshad Aziz: Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan
Khalid Zaman: Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan

Economic Research Guardian, 2013, vol. 3, issue 2, 70-85

Abstract: The objective of the study is to examine the relationship between unemployment rate and growth rate in selected SAARC countries over the period of 1990-2010. Data is analyzed by panel cointegration technique, Fully Modified OLS (FMOLS) and Dynamic OLS (DOLS) for estimating long-run relationship between the variables. The results show some evidences for unemployment hysteresis in selected SAARC countries. The results further depict that the significance of the relationship between economic growth rate and unemployment rate vary between the SAARC countries.

Keywords: Unemployment; Economic growth; Panel Cointegration; FMOLS; SAARC countries (search for similar items in EconPapers)
JEL-codes: C33 E24 O47 (search for similar items in EconPapers)
Date: 2013
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