Relationship between unemployment rate and shadow economy of selected mena countries: a toda -yamamoto and panel causality approach

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.

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The Relationship of Economic Growth And Terrorism with the Human Development Index: A Causality Analysis on MENA Countries

Technium Social Sciences Journal ◽

10.47577/tssj.v11i1.1625 ◽

2020 ◽

Vol 11 ◽

pp. 226-234

Author(s):

Günay Özcan ◽

Cigdem Karter

Keyword(s):

Economic Growth ◽

Human Development ◽

Human Development Index ◽

Causality Analysis ◽

Panel Causality ◽

Development Index ◽

Mena Countries ◽

Causality Relationship ◽

Relationship Of ◽

The Relationship

Examining the human development of societies is one of the important economic policy practices of recent times. Therefore, economies steer the sub-components of human development and their policies implemented by researching the factors that affect such sub-components. In this context, the aim of this study is to examine the relationship between economic growth and terrorism with human development in 12 selected MENA countries in the period of 2002-2017 by the panel causality method. The findings obtained as a result of the panel causality analysis show that both terrorism and economic growth have bidirectional causality with the human development index throughout the panel. A causality relationship has also been found in many countries on a country basis

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Does Government Size Explain Unemployment in MENA Countries?

Applied Economics Quarterly ◽

10.3790/aeq.66.3.223 ◽

2020 ◽

Vol 66 (3) ◽

pp. 223-238

Author(s):

Mufeed Almula-Dhanoon ◽

Marwan Dhannoon ◽

Mustafa Hammadi

Keyword(s):

Labor Market ◽

Unemployment Rate ◽

Negative Impact ◽

Empirical Studies ◽

Government Expenditure ◽

Seemingly Unrelated Regression ◽

Government Size ◽

Theoretical Terms ◽

Mena Countries ◽

The Impact

Economists typically believe that government size is an integral determinant of labor market efficiency. Therefore, it is important in practical and theoretical terms to understand the impact of government size on the unemployment rate. Recent empirical studies indicate the negative impact of government size on labor market performance. This paper explores the relationship between government size and the unemployment rate in seventeen MENA countries during the period 2003 – 2017 using seemingly unrelated regression models (SURs). The research found a statistically significant negative effect of government size on the labor market. It also found that total government expenditure as well as investment expenditure play a dampening role on the labor market. Causality tests indicate that there is significant two-way causal relationship between government size and the unemployment rate. But the dynamic analysis of causality indicates one-direction causality from the unemployment rate to government size. The proper policy must therefore start with addressing unemployment in MENA countries, one of whose tools is government sizing.

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The Impact of Unemployment Rate on the Dimension of Shadow Economy in Spain: A Structural Equation Approach

EUROPEAN RESEARCH STUDIES JOURNAL ◽

10.35808/ersj/252 ◽

2009 ◽

Vol XII (Issue 4) ◽

pp. 179-197 ◽

Cited By ~ 1

Author(s):

Ion Dobre ◽

Adriana

Keyword(s):

Unemployment Rate ◽

Structural Equation ◽

Shadow Economy ◽

Equation Approach ◽

The Impact

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Relationship Between Unemployment Rate and Shadow Economy in Nigeria: A Tado-Yamamoto Approach

International Journal of Financial Research ◽

10.5430/ijfr.v12n3p271 ◽

2021 ◽

Vol 12 (3) ◽

pp. 271

Author(s):

Felicia C. Abada ◽

Charles O. Manasseh ◽

Ifeoma C. Nwakoby ◽

Ngozi Franca Iroegbu ◽

Johnson I. Okoh ◽

...

Keyword(s):

Unemployment Rate ◽

Shadow Economy ◽

Positive Association ◽

Coefficient Of Determination ◽

Causality Test ◽

Self Employment ◽

The Government ◽

Parsimonious Model ◽

Level Of Significance ◽

The Unemployed

This study assessed the nature of the relationship between the size of the shadow economy and unemployment rate in Nigeria using the Tado-Yamamoto approach over the period 1980Q1 to 2018Q4. The size of the shadow economy in Nigeria was determined using the parsimonious model of MIMIC (4-1-2) having four multiple causes (tax burden, self-employment, social benefits paid by the government and unemployment rate) and two indicators (index of real Gross Domestic Product and currency ratio (M1/M2)). The estimated relationship of the size of shadow economy as percentage of official GDP recorded 13.78% at the beginning of the first quarter of 1980 before fluctuating to 8.23% in the third quarter of 2009. The existence of a strong and positive association between the unemployment rate and shadow economy is affirmed by the estimated coefficient of determination (0.89) which confirmed the capacity of the shadow economy to absorb the unemployed workers from the official economy in Nigeria. Evidence exists from the Tado and Yamamoto (1995) causality test which revealed a causal relationship emanating from unemployment rate to the size of shadow economy. This was confirmed by the Modified Wald (MWald) test which demonstrated that a strong unidirectional causality running from unemployment rate to the size of shadow economy exists at 1% level of significance.

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Estimating Shadow Economy and Tax Evasion: Evidence from Morocco

International Journal of Economics and Finance ◽

10.5539/ijef.v11n5p7 ◽

2019 ◽

Vol 11 (5) ◽

pp. 7

Author(s):

Nora Angour ◽

Mohammed Nmili

Keyword(s):

Unemployment Rate ◽

Tax Evasion ◽

Agricultural Sector ◽

Shadow Economy ◽

Empirical Literature ◽

Tax Burden ◽

Indirect Approach ◽

Main Determinants

The purpose of this article is to assess the extent of tax evasion in Morocco for the period from 1985 to 2016. Aware of the difficulty of directly measuring a phenomenon that is hidden by nature, we are opting to use an indirect approach commonly applied in the empirical literature. Hence, we use the MIMIC method, which makes it possible first to estimate the shadow sector economy, and then deduct the tax evasion from it. Our results showed that the average extent of tax evasion and shadow economy in Morocco achieve 6.19% and 38.74% of GDP during the period studied from 1985 to 2016. Also, the tax burden, the rate of openness, the rate of urbanization, the agricultural sector, and unemployment rate are the main determinants of tax evasion in Morocco.

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