Modeling the relationship between GDP and unemployment for Okun’s law specific to Jordan

Hassan Alamro and Qusay Al-dalaien

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this paper is to measure the impact of economic growth on unemployment in the Jordanian economy in the short and long-run during the period (1980-2011) by implementing the okun's law. The relationship is measured by performing the gap model with Hodrick-Prescott filter (HP filter) to calculate the potential gross domestic product. To this end, an Autoregressive Distributed Lag (ARDL) approach to co-integration and the Error Correction Model (ECM) are employed to represent the short and long term relationship. The results indicate that the economic growth has a weak significant negative short- and long-run effect on unemployment.

Keywords: unemployment; okun's law; gap model; Autoregressive Distributed Lag(ARDL) approach; co-integration; Error Correction Model. (search for similar items in EconPapers)
JEL-codes: E23 E24 J01 (search for similar items in EconPapers)
Date: 2014-04-13
New Economics Papers: this item is included in nep-ara and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/55302/1/MPRA_paper_55302.pdf original version (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:pra:mprapa:55302

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().