FRACTIONAL REGRESSION MODEL FOR INVESTIGATING THE DETERMINANTS OF THE UNEMPLOYMENT RATES IN OECD COUNTRIES

Unemployment is a serious problem for all over the world. It is a crucial task to endeavor with the unemployment for the welfare of the world. Once, the potential factors should be known to accomplish this task. The aim of this study is to investigate the determinants of the unemployment rates using fractional regression models for the 35 OECD (Organization for Economic Co-operation and Development) countries over the periods 2000-2017. We determined the factor affecting the unemployment rate by the fractional regression model using GMMbgw and GMMpre estimators for panel data. The empirical results revealed the significant determinants of unemployment as the result of the fractional regression models. Finally, we observe that saving rates, the growth rate of import and export are expressive on the unemployment rates

Determinants of Unemployment in Selected Developing Countries: A Panel Data Analysis

This research gives a new glimpse on determinants of unemployment in developing countries. Unemployment is not only a burning issue in developing countries but also in developed countries, but in this study, the case is related to developing countries. For this purpose data of ten selected developing countries has been taken for the period of 2000 to 2019 from the World Bank. Stationarity has been checked through the Augmented Dickey-Fuller (ADF) test and the result showed that all variables were stationary at 1st difference except the variable of inflation. The Generalized Method of Moments (GMM) model has been applied and results show that all variables are statistically significant. GDP, inflation, remittances, exchange rate, and expenditure on education has a negative impact on unemployment while population and external debt has a positive impact on unemployment. Policy recommendations are that if developing economies want to reduce unemployment they have to control population, remove deficit in the balance of payment, control the inflation rate, raise their GDP, earn the exchange rate due to increase in exports, and gain the foreign remittance and have to allocate the more budget on expenditure on education. In light of these recommendations, all economies can achieve economic efficiency and economic development.

Economic Determinants of Unemployment in Malaysia: Short – and Long – Run Causality

The problem of unemployment has become a worrisome issue over the past few years as it is growing at an alarming state in many countries throughout the world particularly in developing countries such as Malaysia. There are numerous factors that cause this phenomenon. Therefore, the aim of this study is to empirically investigate the determinants of unemployment in Malaysia as well as the relationship between unemployment and the chosen fundamental macroeconomic factors such as gross domestic product, foreign direct investment, inflation, and population. This study utilized the annual time series data of 31 year period starting from the year 1985 to the year 2015. The methodology of econometric analysis have been applied in this study such as unit root tests, co-integration test, vector error correction model, variance decompositions, and impulse response functions analysis. The findings showed that there are presences of short run causality among the variables and also a presence of long run only when population act as the dependent variable in the model. Besides, the findings indicate that GDP has a significant negative impact whereas FDI has a significant positive impact on unemployment in Malaysia. Overall, the conclusion of this study suggests that demand side policies and supply side policies are the most excellent and suitable approach in overcoming the problem of unemployment in Malaysia.

South African Unemployment in the Post-Financial Crisis Era: What are the Determinants?

Research background: High unemployment rates are one of the greatest economic challenges facing the post-apartheid South African government over the past two decades and this problem has become more worrisome in the post-global financial crisis period. Purpose: Our study examines the determinants of unemployment for the South African economy in the post-crisis period over a quarterly frequency period of 2009:Q1 to 2018:Q4. The determinants are examined for four classes of unemployment rates (total, male, female and youth) and we further partition possible unemployment determinants into fiscal, monetary and macroeconomic variables. Research methodology: We employ the autoregressive distributive lag (ARDL) models. Results: We find income tax, repo rates, economic growth, trade, investment, household debt and savings to be significant determinants of unemployment in the post-crisis South African economy and yet we note discrepancies of the significance of these determinants amongst different unemployment categories. Novelty: No study has examined the determinants of unemployment in South Africa in the post-financial crisis era.

ANALYSIS OF DETERMINANTS OF UNEMPLOYMENT RATE IN INDONESIA

Solving the unemployment issue is one of the best ways to reduce poverty. Through the provision of job opportunities, the poverty rate can be reduced. Therefore, this research explores the factors that influence the unemployment rate across 34 provinces over the 2015-2018 period using the panel regression technique. The variable used consisting of economic growth, the percentage of people with IT competence, and the average school duration. This study indicates that the unemployment rate can be reduced by increasing the average school duration. Meanwhile, the level of economic growth and the proportion of people with IT competence have an insignificant influence on Indonesia's unemployment rate. Based on these findings, the government needs to ensure that every resident in its territory can receive an adequate education.

The Determinant of Regional Unemployment in Indonesia: The Spatial Durbin Models

Unemployment is a problem that occurs in many countries and often gets special attention both from policymakers and academics. This fact is because if not addressed, it will cause socio-economic problems in the country. Therefore it is necessary to formulate the causes of unemployment by involving spatial aspects to avoid biased and inefficient estimates. This study aims to find the determinants of unemployment rates in Indonesia, including calculating the direct and indirect effect of using the spatial Durbin models (SDM) in the period 2000-2017. The results of this study indicate that the overall independent variables used significantly influence the unemployment rate in Indonesia. Besides, it turns out that the higher education variable completed by the population of a region has the most significant impact both in decreasing unemployment in a region and neighboring regions. Therefore, the policy taken should pay attention to this.