Recent Impacts of Selected Development Indicators on Unemployment Rate: Focusing the SEE Countries

Ksenija Dumicic, Vesna Bucevska and Emina Resic
Additional contact information
Vesna Bucevska: Faculty of Economics of Ss. Cyril and Methodius University in Skopje, Skopje, R. Macedonia
Emina Resic: The School of Economics and Business University of Sarajevo, Sarajevo, Bosnia nad Herzegovina

Interdisciplinary Description of Complex Systems - scientific journal, 2015, vol. 13, issue 3, 420-433

Abstract: The article investigates the relationship between unemployment rate and development indicators: (1) the GDP per capita in Purchasing Power Parities (PPP in current international $); and (2) the Internet penetration rate, defined as the percentage of Internet users per 100 people. For 34 countries in 2013, only two simple linear regression models based on natural logarithms of data and the Ordinary Least Squares (OLS) estimator appeared to be useful. The simple linear regression "Model 1" shows a negative correlation between the main variable under study ln(Y_UemRate) and the regressor ln(X_GDPpc), explaining nearly half of the total variation. The simple linear regression "Model 2" shows a negative correlation between ln(Y_UemRate) and ln(X_IntUse), explaining 27 % of the total sum of squares. Regarding clustering of 34 countries based on three variables, the Ward linkage and squared Euclidean distances gave an interesting four-cluster solution. The South-East European (SEE), and especially to the Western Balkan's countries (WBC) are focused. These countries, spread in three clusters, are not homogeneous. Bosnia and Herzegovina and R. Macedonia are with Spain and Greece, all having difficult economic situation. Albania, Montenegro and Serbia are with Bulgaria, Romania and Turkey, all being the SEEC. Croatia is with more developed Italy, Cyprus and Poland, and with less developed Portugal. Central European Slovenia, joined more developed countries of that area, but the most developed European countries comprised a cluster of their own.

Keywords: unemployment rate; GDP per capita in PPP; Internet penetration rate; multivariate analysis; Western Balkan countries (search for similar items in EconPapers)
JEL-codes: C51 O12 O57 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://indecs.eu/2015/indecs2015-pp420-433.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:zna:indecs:v:13:y:2015:i:3:p:420-433

Access Statistics for this article

More articles in Interdisciplinary Description of Complex Systems - scientific journal from Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu
Bibliographic data for series maintained by Josip Stepanic ().