Analyzing Relationship Between Unemployment and Growth For Selected OECD Countries Through

Abstract

Being able to examine the research question of this study, whether there is a correlation between unemployment and growth for selected certain OECD member countries, panel data econometrics have been practiced. In the light of empirical findings, while there is a relationship from unemployment to growth, on the other hand, there is no link from growth to unemployment has been reported. Although there is somehow a harmony with other studies existing in the literature in this area, there has been still some conflicts with the rest of them. In some of the reviews, conversely ours, the link from growth to unemployment has been explicitly reported. It is thought that the distinction between this study and other conflicting ones might have arisen from the sample or the method used. It was concluded that there would be no clear dynamics of the relationship between unemployment and growth. Therefore, it was observed that the selected sample and the method used were directly effective on the results.

Keywords

• economic growth
• unemployment
• panel data econometrics