Unemployment, Job Vacancy And Beveridge Curve In Malaysia, Singapore And The Philippines
The macroeconomic objectives of an economy are maintaining a high economic growth, full employment, price stability, and balance of payments stability. As full employment or low unemployment is one of the objective of Malaysia, Singapore and the Philippines economy, this research will shed some l...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2007
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/5035/1/FEP_2007_12.pdf |
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| Summary: | The macroeconomic objectives of an economy are maintaining a high economic
growth, full employment, price stability, and balance of payments stability. As full
employment or low unemployment is one of the objective of Malaysia, Singapore and
the Philippines economy, this research will shed some light on how this objective can
be achieved. The order of integration is first determined by using various unit root
tests namely ADF Test and PP Test. Next, the appropriate cointegration method is
used based on the order of integration. The estimation procedure employed in this study
is Bounds Test Approach of ARDL-UECM popularised by Pesaran (2001). The
Bounds Test of ARDL-UECM shows that Malaysia, Singapore and the Philippines
display a steady state long-run equilibrium among unemployment and
macroeconomic variables. The analysis using ARDL-UECM Approach displays a
negative relationship for Malaysia between unemployment and job vacancy. In
contrast, for Singapore and the Philippines, a positive relationship exist between
unemployment and job vacancy. Using ARDL-UECM Approach, for Malaysia, job vacancy rate, economic growth, and foreign direct investment are found to be important
variables that determines unemployment. For Singapore, variables that are deemed
important in determination of unemployment are economic growth and foreign direct
investment but for the Philippines, government spending are found to be important.
Several conclusions can be derived from this study. Firstly, only Malaysia seems to
have fulfilled the Theory of Beveridge Curve. Both Singapore and the Philippines does
not fulfill the Theory of Beveridge Curve. Secondly, FDI still plays a major role in
reducing unemployment in Malaysia and Singapore but not in the Philippines. Thirdly,
the government sector does not have any impact on unemployment in both Malaysia
and Singapore but not in the Philippines. |
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