UNEMPLOYMENT RATE AND GDP GROWTH RATE IN SELECTED EUROPEAN COUNTRIES
Aleksandra Živković - University of Novi Sad, Faculty of Economics in Subotica, Segedinski put 9-11, 24000 Subotica, Republic of
Serbia
DOI: https://doi.org/10.31410/Balkans.JETSS.2022.5.2.81-92
Aleksandra Živković - University of Novi Sad, Faculty of Economics in Subotica, Segedinski put 9-11, 24000 Subotica, Republic of
Serbia
DOI: https://doi.org/10.31410/Balkans.JETSS.2022.5.2.81-92
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Balkans Journal of Emerging Trends in Social Sciences, (2022) , Vol 5, No 2
ISSN: 2620-164X |
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Abstract: GDP growth rate and unemployment rate are two crucial macroeconomic variables - their correlation is an important indicator for policymakers and it has been frequently analyzed. This research aims to analyze the GDP growth rate and unemployment rate in EU founders, Visegrad group, and Western Balkan countries and to determine if the negative correlation between these variables exists, to point to differences between developed and developing countries, and to indicate real convergence of developing countries towards developed ones. Data is analyzed on a quarterly level from Q1 2010 to Q4 2021 and the methodology of this paper consists of empirical data analysis, descriptive statistics, and panel analysis for each country group. Obtained results point to a negative correlation in all 3 country groups, but it is statistically significant only in EU founders countries, and the convergence of the Visegrad group and Western Balkan countries towards developed ones can be acknowledged.
Keywords: GDP growth rate, Unemployment rate, Okun’s law, EU founders, Visegrad group, Western Balkans.
JEL Classification E00 · E24 · E60 · F00 · J64 · C33
Keywords: GDP growth rate, Unemployment rate, Okun’s law, EU founders, Visegrad group, Western Balkans.
JEL Classification E00 · E24 · E60 · F00 · J64 · C33
REFERENCES
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Chowdhury, M. S. R., & Hossain, M. T. (2014). Determinants of Unemployment in Bangladesh: A Case Study. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2402908
Cvijanović, D., Pantić, N., & Ignjatijević, S. (2019). Economic analysis of employment and GDP in EU countries. Ekonomija: teorija i praksa, 12(4), 11-23. https://doi.org/10.5937/etp1904011c
Ercegovac, D., & Beker Pucar, E. (2021). FDI Inflows in selected emerging European economies with reflection on economic growth, Ekonomika, 67(4), 11-28. https://doi.org/10.5937/ekonomika2104011E
Georgieva Svrtinov, V., Gjorgieva Trajkovska, O., Miteva-Kacarsi, E, & Koleva, B. (2020). The impact of covid-19 on Western Balkan economies, Journal of Economics, 5(2), 35-46. https://doi.org/10.46763/JOE205.20021gs
Hadas-Dyduch, M., Pietrzak, M. B., & Balcerzak, A. P. (2016). Wavelet Analysis on Unemployment rate in Visegrad Countries, Institute of Economic Research Working Papers, No. 37/2016
Halebić, J. (2021). Okun’s law and assessment of stimulus to the economy of Bosnia and Herzegovina, BH Ekonomski forum, 13(2), 29-41. https://doi.org/10.5937/bhekofor2102029H
Iorio, F. D., & Triacca, U. (2022). A comparison between VAR processes jointly modeling GDP and Unemployment rate in France and Germany. Statistical Methods & Applications, 31(3), 617-635. https://doi.org/10.1007/s10260-021-00594-2
Ivanova, E., & Masarova, J. (2018). Performance evaluation of the Visegrad Group countries, Economic research – Ekonomska istraživanja, 31(1), 270-289. https://doi.org/10.1080/1331677X.2018.1429944
Kemiveš, A., & Barjaktarović, L. (2021). Influence of external factors on foreign direct investment flow using the example of the Visegrad Group and Serbia, Ekonomika preduzeća, 69(1-2), 80-94. https://doi.org/10.5937/EKOPRE2102080K
Kowalska, A., Kovarnik, J., Hamplova, E., & Prazak, P. (2018). The selected topics for comparison in Visegrad four countries, Economies, 6(50), 1-15. https://doi.org/10.3390/economies6030050
Matolcsy, G., & Palotai, D. (2019). Hungary Is on the Path to Convergence. Financial and Economic Review, 18(3), 5-28. https://doi.org/10.33893/fer.18.3.528
Milojević, M. (2019). The economy of Serbia 2014-2018 through key indicators summary. Revizor, 22(85), 7-29. https://doi.org/10.5937/rev1885007m
Nikolić, I., & Zoroja, M. (2016). The estimation of long-run relationship between Serbian and German economic growth. Industrija, 44(2), 55-66. https://doi.org/10.5937/industrija44-10016
Petrović, P., Brčerević, D., & Gligorić, M. (2019). Why is Serbia an economic growth underachiever? Ekonomika preduzeca, 67(1-2), 17-33. https://doi.org/10.5937/ekopre1808017p
Ristanović, V., & Barjaktarević, S. (2014). Labour market dynamics in Serbia. Ekonomski pogledi, 16(3), 1-25. https://doi.org/10.5937/ekopog1403001r
Strielkowski, W., & Hoschle, F. (2016). Evidence for economic convergence in the EU: The analysis of past EU enlargements, Technological and economic development of economy, 22(4), 617-630. https://doi.org/10.3846/20294913.2014.890138
Tumanoska, D. (2019). The Validity of Okun’s Law in North Macedonia. Business and Economic Research, 9(2), 160. https://doi.org/10.5296/ber.v9i2.14659
Vladušić, Lj., Živković, A., & Pantić, N. (2019). Macroeconomic analysis of GDP and employment in EU countries, Ekonomika, 66(1), 65-76. https://doi.org/10.5937/ekonomika2001065V
Vukadinović, S., Domazet, S., & Ješić, J. (2018). Employment and unemployment of youth in the Republic of Serbia, current state and prospects, Poslovna ekonomija, 13(1), 20-32. https://doi.org/10.5937/poseko13-17158
https://ec.europa.eu/
https://www.monstat.org/
REFERENCES
Bodart, V., Dejemeppe, M., & Van der Linden, B. (2018). The labor market in Belgium, 2000-2016, IZA World of Labor, Institute for the Study of Labor (IZA), 428, 1-12. https://doi.org/10.15185/izawol.428
Chowdhury, M. S. R., & Hossain, M. T. (2014). Determinants of Unemployment in Bangladesh: A Case Study. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2402908
Cvijanović, D., Pantić, N., & Ignjatijević, S. (2019). Economic analysis of employment and GDP in EU countries. Ekonomija: teorija i praksa, 12(4), 11-23. https://doi.org/10.5937/etp1904011c
Ercegovac, D., & Beker Pucar, E. (2021). FDI Inflows in selected emerging European economies with reflection on economic growth, Ekonomika, 67(4), 11-28. https://doi.org/10.5937/ekonomika2104011E
Georgieva Svrtinov, V., Gjorgieva Trajkovska, O., Miteva-Kacarsi, E, & Koleva, B. (2020). The impact of covid-19 on Western Balkan economies, Journal of Economics, 5(2), 35-46. https://doi.org/10.46763/JOE205.20021gs
Hadas-Dyduch, M., Pietrzak, M. B., & Balcerzak, A. P. (2016). Wavelet Analysis on Unemployment rate in Visegrad Countries, Institute of Economic Research Working Papers, No. 37/2016
Halebić, J. (2021). Okun’s law and assessment of stimulus to the economy of Bosnia and Herzegovina, BH Ekonomski forum, 13(2), 29-41. https://doi.org/10.5937/bhekofor2102029H
Iorio, F. D., & Triacca, U. (2022). A comparison between VAR processes jointly modeling GDP and Unemployment rate in France and Germany. Statistical Methods & Applications, 31(3), 617-635. https://doi.org/10.1007/s10260-021-00594-2
Ivanova, E., & Masarova, J. (2018). Performance evaluation of the Visegrad Group countries, Economic research – Ekonomska istraživanja, 31(1), 270-289. https://doi.org/10.1080/1331677X.2018.1429944
Kemiveš, A., & Barjaktarović, L. (2021). Influence of external factors on foreign direct investment flow using the example of the Visegrad Group and Serbia, Ekonomika preduzeća, 69(1-2), 80-94. https://doi.org/10.5937/EKOPRE2102080K
Kowalska, A., Kovarnik, J., Hamplova, E., & Prazak, P. (2018). The selected topics for comparison in Visegrad four countries, Economies, 6(50), 1-15. https://doi.org/10.3390/economies6030050
Matolcsy, G., & Palotai, D. (2019). Hungary Is on the Path to Convergence. Financial and Economic Review, 18(3), 5-28. https://doi.org/10.33893/fer.18.3.528
Milojević, M. (2019). The economy of Serbia 2014-2018 through key indicators summary. Revizor, 22(85), 7-29. https://doi.org/10.5937/rev1885007m
Nikolić, I., & Zoroja, M. (2016). The estimation of long-run relationship between Serbian and German economic growth. Industrija, 44(2), 55-66. https://doi.org/10.5937/industrija44-10016
Petrović, P., Brčerević, D., & Gligorić, M. (2019). Why is Serbia an economic growth underachiever? Ekonomika preduzeca, 67(1-2), 17-33. https://doi.org/10.5937/ekopre1808017p
Ristanović, V., & Barjaktarević, S. (2014). Labour market dynamics in Serbia. Ekonomski pogledi, 16(3), 1-25. https://doi.org/10.5937/ekopog1403001r
Strielkowski, W., & Hoschle, F. (2016). Evidence for economic convergence in the EU: The analysis of past EU enlargements, Technological and economic development of economy, 22(4), 617-630. https://doi.org/10.3846/20294913.2014.890138
Tumanoska, D. (2019). The Validity of Okun’s Law in North Macedonia. Business and Economic Research, 9(2), 160. https://doi.org/10.5296/ber.v9i2.14659
Vladušić, Lj., Živković, A., & Pantić, N. (2019). Macroeconomic analysis of GDP and employment in EU countries, Ekonomika, 66(1), 65-76. https://doi.org/10.5937/ekonomika2001065V
Vukadinović, S., Domazet, S., & Ješić, J. (2018). Employment and unemployment of youth in the Republic of Serbia, current state and prospects, Poslovna ekonomija, 13(1), 20-32. https://doi.org/10.5937/poseko13-17158
https://ec.europa.eu/
https://www.monstat.org/
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