The relationship between output growth and unemployment in the Philippines economy (1990-2014):

2017 ◽  
Vol 5 (1) ◽  
pp. 49
Author(s):  
Marlon A. Mojica ◽  
Virgilio M. Tatlonghari
Keyword(s):  
Labor Force ◽  
Structural Break ◽  
Empirical Relationship ◽  
Trade Openness ◽  
Negative Relationship ◽  
Participation Rate ◽  
The Philippines ◽  
Output Growth ◽  
Recursive Least Squares ◽  
Parameter Instability

This paper examines the empirical relationship between unemployment and real output in the Philippines utilizing quarterly data from the Labor Force Survey by the Philippine Statistics Authority for the period from 1990-2014. The study employed three variants of Okun’s Law – the “gap” approach, the “first difference” approach, and a dynamic approach.   Findings show that the Okun’s coefficients based on the gap approach are consistent with the theoretical expectation of a negative relationship.  In the ARDL model, labor force participation rate and trade openness were found to be significantly related to unemployment. The result of dummy variable test revealed the presence of structural break following the re-definition of unemployment in the Philippines in 2005. Recursive least squares and rolling regressions show evidence of parameter instability in several sub-periods.

scholarly journals Impact of Health Expenditures on Labor Force Participation: Evidence from Pakistan

2018 ◽  
Vol 6 (4) ◽  
pp. 419-427
Author(s):  
Abdur Rauf ◽  
Maryyum Bashir ◽  
Kiran Asif ◽  
Sardar Fawad Saleem
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Trade Openness ◽  
Participation Rate ◽  
Positive Association ◽  
Health Expenditures ◽  
Health Issues ◽  
Secondary School Enrolment ◽  
Lag Model ◽  
Case Data

The current study focused on health expenditures and labor force participation linkages taking Pakistan as a sample case. Data sample cover the period from 1972 to 2013. Economic survey of Pakistan and WDI were consulted for data collection and the estimated results were extracted by using Autoregressive Distributive Lag Model which revealed that there is positive association between health and labor force participation rate in Pakistan. Amongst the other variables, secondary school enrolment and Investment also has positive impacts on labor force participation in both long and short span of time. Life expectancy has adverse effects and trade openness is insignificant in a model. It is suggested that to encourage higher labor force participation government may increase its expenditures on basic health issues along with investment friendly policies. Furthermore it is also suggested that education may also be encouraged for productive labor in a country.

scholarly journals Economic Growth Creation Or Diversion? The Record of Trade Agreements In Latin America

1970 ◽  
Vol 27 (1) ◽  
pp. 93-122
Author(s):  
Gustavo Barboza ◽  
Sandra Trejos
Keyword(s):  
Economic Growth ◽  
Latin America ◽  
Labor Force ◽  
Trade Openness ◽  
Trade Agreements ◽  
Output Growth ◽  
Preferential Trade Agreements ◽  
Preferential Trade ◽  
Positive Effect ◽  
Capita Output

This paper examines the effects of Preferential Trade Agreements (PTAs) andGATT/WTO membership on economic growth using a sample of seventeen LatinAmerican countries for the period 1950-2004. In general, the evidence indicatesthat the proliferation of bilateral and multi country regional and extra regional tradeagreements has not resulted in faster economic growth. On the contrary, we find thatPTAs and WTO only have a weak positive effect on increasing trade openness; butthis relationship does not translate into faster economic growth when controlling forcapital, labor force and trade openness. These results are robust to both static anddynamic model specifications, indicating that trade openness has a positive effect onper capita output growth, but PTA and WTO membership do not. Integration via defacto increases output growth while integration via de jure does not. Based on theresults, PTAs create a net diversion effect on economic growth.

scholarly journals Does High Yield Spread Dampen Economic Growth?

2014 ◽  
Vol 3 (2) ◽  
pp. 01-09
Author(s):  
Yutaka Kurihara
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Interest Rates ◽  
Empirical Relationship ◽  
Negative Relationship ◽  
The United States ◽  
Output Growth ◽  
Yield Spread ◽  
Government Bond ◽  
Bond Yield

This article focuses on the empirical relationship between the United States’ and Japan’s yield spread of interest rates and economic growth in Japan. The yield spread is defined in this article as the difference between the Japanese government bond yield minus the US government bond yield. Some studies have tackled this issue and found a negative relationship between the yield spread and economic growth; however, recent studies have shown no or a weak relationship. This problem has not yet reached consensus in spite of its importance. As the Japanese interest rate has been quite low since the adoption of the zero interest rate policy at the end of 1990s, the situation may change the results. The empirical results show that reliability of yield spread as a leading indicator of output growth exists in Japan; however, term structure of interest rate is not related to output growth.

scholarly journals Modeling the Labor Force Participation Rate of the Philippines through Multiple Linear Regression

2021 ◽  
Vol 12 (3) ◽  
pp. 4987-4998
Author(s):  
Angelu G. Leynes Et. al.
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Labor Force ◽  
Labor Force Participation ◽  
Participation Rate ◽  
The Philippines ◽  
Labor Force Participation Rate ◽  
Quarterly Data ◽  
Independent Variables ◽  
Significant Difference

The main purpose of this study is to formulate a mathematical regression model showing the significant effect of the independent variables to the dependent variable. The researchers obtained the quarterly data from the Philippine Statistics Authority (PSA) limited only from 2001 to 2016 with a total of 448 observations. The data include the following factors: Employment Rate (X1), Underemployment Rate (X2), Gross National Income (X3), Household Population 15 yrs+ (X4) and Gross Domestic Product (X5) as independent variables that can affect the Labor Force Participation Rate in the Philippines. The researchers use the IBM Statistical Package for the Social Sciences as a statistical tool for recording and analyzing the quarterly data. The researchers employed two main statistical treatments which are subjected at 1% level of significance: Pearson R Correlation, to determine which of the independent variables have significant relationship with the dependent variable; and Multiple Linear Regression Analysis, to formulate the fitted mathematical model for the dependent variable. According to the results gathered, three out of five independent variables become the predictors of Labor Force Participation Rate which are included in the fitted model. Moreover, the researchers also utilize the Paired-T test to find if the predicted values and the actual values of the dependent variable have significant difference with each other

scholarly journals Does High Yield Spread Dampen Economic Growth? The Case of US-Japan

2016 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Yutaka Kurihara
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Interest Rates ◽  
Empirical Relationship ◽  
Negative Relationship ◽  
The United States ◽  
Output Growth ◽  
Yield Spread ◽  
Government Bond ◽  
Bond Yield

<p><em>This article focuses on the empirical relationship between the United States’ and Japan’s yield spread of interest rates and economic growth in Japan. The yield spread is defined in this article as the difference between the Japanese government bond yield minus the US government bond yield. Some studies have tackled this issue and found a negative relationship between the yield spread and economic growth; however, recent studies have shown no or a weak relationship. This problem has not yet reached consensus in spite of its importance. As the Japanese interest rate has been quite low since the adoption of the zero interest rate policy at the end of 1990s, the situation may change the results. The empirical results show that reliability of yield spread as a leading indicator of output growth exists in Japan; however, term structure of interest rate is not related to output growth.</em><em></em></p>

scholarly journals Trade Openness And Economic Growth Revisited

2011 ◽  
Vol 16 (3) ◽  
Author(s):  
Anna Merikas ◽  
George S. Vozikis ◽  
Andreas Merikas
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Negative Relationship ◽  
Rate Distortion ◽  
Output Growth ◽  
Font Size ◽  
Economic Growth Rate ◽  
Economic Growth Rates ◽  
The Relationship ◽  
Distortion Index

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.4in 0pt 0.5in; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in;"><span style="font-family: Batang; font-size: x-small;">Our study attempted to establish how positive and how robust the relationship between average economic growth rate and the pace at which exporting activity grows using Extreme Bounds Analysis on Dollar's (1992) 95 nation openness index.<span style="mso-spacerun: yes;">&nbsp; </span>Our results indicate that not only there is indeed such a positive and robust relationship, but there is also an equally robust but negative relationship between average economic growth rates and the real exchange rate distortion index, as well as a positive and robust effect between export share of GDP with the investment share in GDP, which in turn is robustly linked to output growth and GDP expansion.</span></p>

Changing Demographic of Labor Force and Productivity: A Case of Japan

2008 ◽  
Vol 7 (2) ◽  
pp. 175-187
Author(s):  
Chandra Akkihal ◽  
Rajindar Koshal ◽  
Ashok Gupta ◽  
Manjulika Koshal ◽  
Yoichi Mine
Keyword(s):  
Labor Force ◽  
Unemployment Rate ◽  
Productivity Growth ◽  
Negative Relationship ◽  
Participation Rate ◽  
Demographic Characteristics ◽  
Turnover Rates ◽  
Gender Distribution ◽  
Younger Workers ◽  
The Relationship

AbstractFor the period of 1978-2003, this paper examines the relationship between changing productivity and demographic characteristics of Japan's labor force. The results of this study reveal four important and interesting characteristics of the Japanese labor force. First, there is a negative relationship between productivity growth and turnover rates. Second, the participation rate of younger workers in the labor force has declined; this has resulted in a decline in the percentage of younger workers (15-34 years old). Third, the gender distribution of the labor force has not changed in any significant way. Fourth, the unemployment rate has increased by more than four times. These labor force changes have contributed to fluctuations in productivity growth.

Testing Structural Break in the Relationship Between Exchange Rate and Macroeconomic Variables

2019 ◽  
Vol 23 (4) ◽  
pp. 442-453 ◽  
Author(s):  
Saidia Jeelani ◽  
Joity Tomar ◽  
Tapas Das ◽  
Seshanwita Das
Keyword(s):  
Exchange Rate ◽  
Structural Breaks ◽  
Time Series Data ◽  
Structural Break ◽  
Series Data ◽  
Ripple Effect ◽  
Macroeconomic Factors ◽  
Parameter Instability ◽  
Macroeconomic Variables ◽  
The Relationship

The article aims to study the relationship between those macroeconomic factors that the affect (INR/USD) exchange rate (ER). Time series data of 40 years on ER, GDP, inflation, interest rate (IR), FDI, money supply, trade balance (TB) and terms of trade (ToT) have been collected from the RBI website. The considered model has suggested that only inflation, TB and ToT have influenced the ER significantly during the study period. Other macroeconomic variables such as GDP, FDI and IR have not significantly influenced the ER during the study period. The model is robust and does not suffer from residual heteroscedasticity, autocorrelation and non-normality. Sometimes the relationship between ER and macroeconomic variables gets affected by major economic events. For example, the Southeast Asian crisis caused by currency depreciation in 1997 and sub-prime loan crisis of 2008 severely strained the national economies. Any global economic turmoil will affect different economic variables through ripple effect and this, in turn, will affect the ER of different economies differently. The article has also diagnosed whether there is any structural break or not in the model by applying Chow’s Breakpoint Test and have obtained multiple breaks between 2003 and 2009. The existence of structural breaks during 2003–2009 is explained by the fact that volume of crude oil imported by India is high and oil price rise led to a deficit in the TB alarmingly, which caused a structural break or parameter instability.

Sign in / Sign up

Export Citation Format

Share Document