The Relationship between GDP and Unemployment: Evidence from MENA Countries

Mehdi Haririan Mehmet Huseyin Bilgin Gokhan Karabulut
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Mehdi Haririan Mehmet Huseyin Bilgin Gokhan Karabulut: Bloomsburg University, USA Kadir Has University, Turkey Istanbul University, Turkey
Authors registered in the RePEc Author Service: Gokhan Karabulut and Mehmet Huseyin Bilgin

Zagreb International Review of Economics and Business, 2010, vol. 13, issue 1, 17-28

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.

Date: 2010
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