Does Okun's Law exist in selected Asean countries

Does Okun's Law exist in selected Asean countries

Nowadays, unemployment is an important issues in some developing countries. High unemployment means the labour resources are not being used efficiently. Okun's law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). The objec...

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Main Author: Amy Faizah Nain
Format: Thesis
Language:English
Published: 2012
Subjects:
HD Industries
Land use
Labor
Online Access:https://eprints.ums.edu.my/id/eprint/5866/1/mt0000000056.pdf
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id my-ums-ep.5866
record_format uketd_dc
institution Universiti Malaysia Sabah
collection UMS Institutional Repository
language English
topic HD Industries
Land use
Labor
spellingShingle HD Industries
Land use
Labor
Amy Faizah Nain
Does Okun's Law exist in selected Asean countries
description Nowadays, unemployment is an important issues in some developing countries. High unemployment means the labour resources are not being used efficiently. Okun's law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). The objective of this paper is to check the validity of Okun's law in selected ASEAN countries such as Indonesia, Malaysia, Thailand, Singapore and Philippines. This study highlights method to estimate the Okun coefficient which is to use a first difference measure of unemployment. By using the annual data covering the period 1980-2009, the panel and times series techniques are used to test the relation between unemployment rate and real GDP and to obtain estimates for Okun's coefficient. Pedroni cointegration technique is used in order to find long run relation between unemployment rates and real GDP. Furthermore, the vector error correction model (VECM) is to find the short term behaviour of real GDP to its long run value. The simple regression is to examine the relationship between unemployment rate and real GDP. This study verifies negative relationshipnbetween unemployment rate and real GDP. The empirical results reveals that Okun's law can be confirmed in some ASEAN countries. The empirical analysis proves that Malaysia, Thailand and Singapore show the existence of Okun's law. However, Indonesia and the Philippines show that Okun's law is non-existent.
format Thesis
qualification_level Master's degree
author Amy Faizah Nain
author_facet Amy Faizah Nain
author_sort Amy Faizah Nain
title Does Okun's Law exist in selected Asean countries
title_short Does Okun's Law exist in selected Asean countries
title_full Does Okun's Law exist in selected Asean countries
title_fullStr Does Okun's Law exist in selected Asean countries
title_full_unstemmed Does Okun's Law exist in selected Asean countries
title_sort does okun's law exist in selected asean countries
granting_institution Universiti Malaysia Sabah
granting_department School of Business & Economics
publishDate 2012
url https://eprints.ums.edu.my/id/eprint/5866/1/mt0000000056.pdf
_version_ 1747836321494204416
spelling my-ums-ep.58662017-11-14T07:39:20Z Does Okun's Law exist in selected Asean countries 2012 Amy Faizah Nain HD Industries. Land use. Labor Nowadays, unemployment is an important issues in some developing countries. High unemployment means the labour resources are not being used efficiently. Okun's law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). The objective of this paper is to check the validity of Okun's law in selected ASEAN countries such as Indonesia, Malaysia, Thailand, Singapore and Philippines. This study highlights method to estimate the Okun coefficient which is to use a first difference measure of unemployment. By using the annual data covering the period 1980-2009, the panel and times series techniques are used to test the relation between unemployment rate and real GDP and to obtain estimates for Okun's coefficient. Pedroni cointegration technique is used in order to find long run relation between unemployment rates and real GDP. Furthermore, the vector error correction model (VECM) is to find the short term behaviour of real GDP to its long run value. The simple regression is to examine the relationship between unemployment rate and real GDP. This study verifies negative relationshipnbetween unemployment rate and real GDP. The empirical results reveals that Okun's law can be confirmed in some ASEAN countries. The empirical analysis proves that Malaysia, Thailand and Singapore show the existence of Okun's law. However, Indonesia and the Philippines show that Okun's law is non-existent. 2012 Thesis https://eprints.ums.edu.my/id/eprint/5866/ https://eprints.ums.edu.my/id/eprint/5866/1/mt0000000056.pdf text en public masters Universiti Malaysia Sabah School of Business & Economics Ahmad. Khalil, Khalil. Sumaira, and Saeed. Allah Ditta, (2011) Does There Exist Okun's Law in Pakistan? 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