scholarly journals THE RELATIONSHIP BETWEEN INFLATION RATE AND UNEMPLOYMENT RATE IN INDONESIA, 1985-2008

2012 ◽  
Vol 1 (2) ◽  
pp. 95
Author(s):  
Selli Nelonda
Keyword(s):  
Unemployment Rate ◽  
Negative Correlation ◽  
Inflation Rate ◽  
Granger Causality Test ◽  
Causality Test ◽  
Unemployment Rates ◽  
Total Labor Force ◽  
Wage Inflation ◽  
Total Labor ◽  
The Relationship

This paper aims to investigate the relationship between inflation rate and unemployment. Tradeoff between inflation and unemployment rate showed a negative correlation between unemployment and wage inflation. Using the OLS method (1985-2008), the estimates indicate that the rate of inflation does not significantly influence the level of unemployment. It can be seen from a positive inflation coefficient value and not significant. Total labor force significantly affect unemployment rates. The unemployment rate last year significant effect on the unemployment rate today. Granger causality test shows that there is no causal relationship between unemployment and inflation.

scholarly journals Econometric estimation of the relationship between the unemployment rate and economic growth in Limpopo Province, South Africa

2020 ◽  
Vol 58 (4) ◽  
Author(s):  
Tshephi Kingsley Thaba ◽  
Abenet Belete ◽  
Johannes Jan Hlongwane ◽  
Lesetja Jacob Ledwaba
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Granger Causality ◽  
Unemployment Rate ◽  
Granger Causality Test ◽  
Limpopo Province ◽  
Economic Policies ◽  
Difference Model ◽  
Causality Test ◽  
The Relationship

Abstract. The study aims to estimate empirically the relationship between economic growth and unemployment rate in Limpopo Province of South Africa. The analysis used quarterly data covering the period 2008-2018 which was obtained from Statistics South Africa. The study employed, difference model, dynamic model, and granger causality test for data analysis, in order to consider both, short term and long term possible relationship Based on the difference model estimation of the coefficient was done and the coefficient was found to be -0.22. From Granger causality test, causal relationship between these two variables doesn’t exist meaning that change in the growth rate of real GDP doesn’t cause change in the rate of unemployment and vice-versa. Inapplicable of the law indicates that a cyclical recovery will not be accompanied by reduction of unemployment. Furthermore, this might reflect the sizable structural and/or frictional component of unemployment in Limpopo Province. Lastly, the country's economic policies have not been suitable for fostering development that can reduce unemployment and this could be due to lack of appropriate composition of public sector and private sector.

scholarly journals Causal Linkage between Inflation and Unemployment: An evidence from the Selected MENA Countries

2018 ◽  
Vol 6 (1) ◽  
pp. 121-131
Author(s):  
Tarek Kacemi ◽  
Sallahuddin Hassan
Keyword(s):  
Granger Causality ◽  
Unemployment Rate ◽  
Inflation Rate ◽  
Phillips Curve ◽  
Granger Causality Test ◽  
Two Dimensions ◽  
Causal Association ◽  
Causality Test ◽  
Mena Countries ◽  
Panel Granger Causality

The current study measures the causal association between inflation and unemployment employing Phillips Curve approach from 1990 until 2016 for selected MENA countries. Granger causality and the heterogeneous causality methods for Panel are employed by this study as proposed by Dumitrescu and Hurlin. This causality test has an advantage over the panel Granger causality as it considers two dimensions of heterogeneity. The finding revealed a unidirectional causality between unemployment and inflation with Panel Dumitrescu and Hurlin Granger causality but not in the panel Granger causality test. Therefore, the governments should choose to stabilize inflation rate or reduce unemployment rate.

scholarly journals Terrorism and Macroeconomy: A Review of The Eurasian Economies

2017 ◽  
Author(s):  
Özge Korkmaz
Keyword(s):  
Unemployment Rate ◽  
Inflation Rate ◽  
Causal Link ◽  
Cointegration Analysis ◽  
Causality Test ◽  
Per Capita Gdp ◽  
Export Rate ◽  
Per Capita ◽  
The Relationship

The relationship between terrorist incidents, inflation rate, unemployment rate, per capita GDP, export rate and import rate for Eurasian countries Ukraine, Moldova, Georgia, Kyrgyzstan, Kazakhstan, Tajikistan, Azerbaijan, Armenia and Belarus for the period 1994-2015. For this purpose, the Westerlund cointegration analysis and have been using the causality test introduced by Holtz-Eakin, Newey and Rosen. As a result of the analyzes, it is observed that there is a long-term relationship between the export rate and the terrorist incidents and the export rate is the reason for the terrorist incidents. At the same time, it has been found that there is no long-term interaction and causal link between all other variables and terrorist incidents considered in the study.

The relationship between financial development and economic growth in Eswatini (formerly Swaziland)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siphe-okuhle Fakudze ◽  
Asrat Tsegaye ◽  
Kin Sibanda
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Financial Development ◽  
Granger Causality Test ◽  
Causality Test ◽  
Content Type ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
The Relationship

PurposeThe paper examined the relationship between financial development and economic growth for the period 1996 to 2018 in Eswatini.Design/methodology/approachThe Autoregressive Distributed Lag bounds test (ARDL) was employed to determine the long-run and short-run dynamics of the link between the variables of interest. The Granger causality test was also performed to establish the direction of causality between financial development and economic growth.FindingsThe ARDL results revealed that there is a long-run relationship between financial development and economic growth. The Granger causality test revealed bidirectional causality between money supply and economic growth, and unidirectional causality running from economic growth to financial development. The results highlight that economic growth exerts a positive and significant influence on financial development, validating the demand following hypothesis in Eswatini.Practical implicationsPolicymakers should formulate policies that aims to engineer more economic growth. The policies should strike a balance between deploying funds necessary to stimulate investment and enhancing productivity in order to enliven economic growth in Eswatini.Originality/valueThe study investigates the finance-growth linkage using time series analysis. It determines the long-run and short-run dynamics of this relationship and examines the Granger causality outcomes.

scholarly journals Effect of Unemployment Rate on Growth Rate of Gross Domestic Product of Jordan

2019 ◽  
Vol 10 (3) ◽  
pp. 217 ◽  
Author(s):  
Khaled Abdalla Moh'd AL-Tamimi
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Labor Force ◽  
Unemployment Rate ◽  
Ordinary Least Squares ◽  
Total Labor Force ◽  
Independent Variable ◽  
Total Labor ◽  
Level Of Significance ◽  
Yearly Data

This study explains the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) as unemployment rate is independent variable, and growth rate of GDP (Avariable of economic growth) as a dependent variable. This study focuses on explaining the literature both in theoretical and empirical ways of the effect of unemployment rate on growth rate of GDP, and analyzing the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) by using the technique of ordinary least squares in version of E-views. This paper found that there are insignificant impacts of unemployment percentage to total labor force, unemployment of males percentage to male labor force, unemployment of females percentage to female labor force on growth rate of GDP of Jordan by relying on yearly data for the period 2009 to 2016 at level of significance 5%. This paper recommends testing the impacts of other obstacles in Jordan on growth rate on GDP, in order to know the variables that effect growth rate of GDP in Jordan.

PENGUJIAN WAGNER'S LAW VERSUS KEYNESIAN HYPOTHESIS: PENDEKATAN REGIONAL INDONESIA

2021 ◽  
Vol 2 (2) ◽  
pp. 181-193
Author(s):  
Esti Pasaribu ◽  
Septriani Septriani
Keyword(s):  
Government Expenditure ◽  
Granger Causality Test ◽  
Empirical Theory ◽  
Causality Test ◽  
Wagner’S Law ◽  
Long Run ◽  
Wagner's Law ◽  
The Government ◽  
The Relationship ◽  
Positive Effect

In this paper, we tested the Wagner’s Law against the Keynesian Hypothesis for Indonesia using granger causality test. After conducting theoretical and empirical theory, this paper is analysing the relationship between government expenditure and GDP percapita. The long run parameters and causality test found valid Wagners’ Law in Indonesia not Keynesian Hypothesis. The results reveal a positive and statistically significant long run effect running from economic growth toward the government expenditure refer to Wagner’s Law in Indonesia. Further more, the growth of population is giving a positive effect for government expenditure also.

The Relationship Between Stock Market Indices of the Biggest Six Economies of the European Union and BIST 100

2020 ◽  
pp. 257-275
Author(s):  
Serdar Ögel ◽  
Fatih Temizel
Keyword(s):  
European Union ◽  
Stock Market ◽  
Granger Causality ◽  
Granger Causality Test ◽  
Var Model ◽  
The European Union ◽  
Causality Test ◽  
Integration Test ◽  
Causality Relationship ◽  
The Relationship

This chapter examines the relationship between stock market indices of the biggest six economies of the European Union and BIST 100. In this context, this study used the daily time series regarding indices of DAX for Germany, CAC 40 for France, FTSE MIB for Italy, IBEX 35 for Spain, AEX for Holland, FTSE 100 for United Kingdom, and BIST 100 for Turkey from 2014 to 2018. To test whether there is a co-integration relationship among indices, Johansen co-integration test was used. Since a co-integration relationship was not found between series, causality relationship between the European stock market indices and Turkey was tested with Granger causality test by establishing standard VAR model. As a result, a unidirectional Granger causality relationship was found from DAX, FTSE 100, CAC 40, IBEX 35, and AEX to BIST 100 according to lag length 1 and 2. However, a unidirectional Granger causality relationship was only found from FTSE MIB to BIST 100 for lag length 1. For lag length 1 and 2, no causality relationship was found from BIST 100 to the selected European stock market indices.

scholarly journals The correlation and volatility between bitcoin and the blockchain index

2020 ◽  
Vol 4 (2) ◽  
pp. 103-115
Author(s):  
Tuotuo Qi ◽  
Tianmei Wang ◽  
Jianming Zhu ◽  
Ruyu Bai
Keyword(s):  
Granger Causality ◽  
Design Methodology ◽  
Granger Causality Test ◽  
External Shocks ◽  
Class Model ◽  
Causality Test ◽  
Content Type ◽  
Blockchain Technology ◽  
The World ◽  
The Relationship

Purpose The encrypted money market has attracted the attention of investors all over the world. Among the encrypted currency, bitcoin is undoubtedly the most popular. Because blockchain technology is the crucial support of bitcoin, exploring the relationship between bitcoin and the blockchain index is necessary. Design/methodology/approach This paper uses the Granger causality test to explore the correlation between bitcoin and the blockchain index. Furthermore, their volatility is analyzed by a GARCH-class model. Findings The results show that no significant correlation exists between bitcoin and the blockchain index; external shocks aggravate the volatility of bitcoin and the blockchain index, and the volatility has a certain degree of sustainability; and blockchain index has obvious leverage, namely, its decline has a stronger impact. Originality/value The volatility of bitcoin and the blockchain index is crucial for investors.

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