Article
arifi-et-al-2023-testing-okun-s-law-evidence-from-the-western-balkan-countries
Sage Open
(2023)
Abstract
Sustainable economic growth and reducing unemployment stood at the heart of each monetary policy. Despite controversial discussions among scholars, Okun’s Law remains a valuable tool for measuring the relationship between economic growth and the unemployment rate. The study covers the six Western Balkan (WB) countries using quarterly unemployment and economic growth data from 2005 to 2019. The results were obtained from the Vector Autoregressive Model, Granger Causality Test, and Impulse Response Function. The findings show that the GDP growth rate has no influence on the unemployment rate in the case of six Western Balkan countries. From the policy perspective, the outcomes of this study provide valuable indications for the policymakers in WB countries on the importance of economic growth in reducing the unemployment rate.
Keywords
- unemployment rate,
- economic growth,
- Okuns Law
Disciplines
Publication Date
Fall November 16, 2023
DOI
https://doi.org/10.1177/21582440231208332
Citation Information
Dritero Arifi, Hajdi Xhixha and Florin Aliu. "arifi-et-al-2023-testing-okun-s-law-evidence-from-the-western-balkan-countries" Sage Open Vol. 13 Iss. 4 (2023) p. 1 - 12 ISSN: 2158-2440 Available at: http://works.bepress.com/dritero-arifi/20/
Creative Commons license
This work is licensed under a Creative Commons CC_BY International License.