EconPapers    
Economics at your fingertips  
 

Fitting Okun's law for the Swazi Kingdom: Will a nonlinear specification do?

Andrew Phiri

No 1829, Working Papers from Department of Economics, Nelson Mandela University

Abstract: Despite Okun’s law being hailed one of the most fundamental pieces within macroeconomic policy paradigm, empirical evidence existing for the Kingdom of Swaziland remains virtually non-existent. Our study fills this void/hiatus in the literature by examining Okun’s law for the Swazi Kingdom by using the nonlinear autoregressive distributive lag (N-ARDL) model applied to data collected over 1991 to 2017. To ensure robustness of our empirical analysis, we further apply the Corbae-Oularis (C-O) filter to extract the gap variables required for empirical estimates. Remarkably, we find strong evidence for nonlinear Okun’s trade-off between unemployment and output growth in Swaziland with this trade-off being stronger during recessionary periods compared to expansionary periods. Much-needed policy enlightenment is drawn for Swazi authorities from our findings.

Keywords: Okun’s law; Nonlinear autoregressive distributive lag (N-ARDL) model; Swaziland; Sub-Saharan African (SSA) country; Corbae-Oularis filter. (search for similar items in EconPapers)
JEL-codes: C22 C32 E24 O40 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2018-08
New Economics Papers: this item is included in nep-ets and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.mandela.ac.za/RePEc/mnd/wpaper/paper.1829.pdf First version, 2018 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Internal Server Error

Related works:
Journal Article: Fitting Okun's law for the Swazi Kingdom: Will a nonlinear specification do? (2019) Downloads
Working Paper: Fitting Okun's law for the Swazi Kingdom: Will a nonlinear specification do? (2018) Downloads
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:mnd:wpaper:1829

Access Statistics for this paper

More papers in Working Papers from Department of Economics, Nelson Mandela University Contact information at EDIRC.
Bibliographic data for series maintained by Andrew Phiri ().

 
Page updated 2025-03-19
Handle: RePEc:mnd:wpaper:1829