The interlink between output, FDI, human capital, public expenditure, inflation, and unemployment: " "Panel data evidence | ||
| المجلة المصرية للدراسات التجارية | ||
| Volume 49, Issue 1, January 2025, Pages 1377-1418 PDF (2.52 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/alat.2025.465429 | ||
| Authors | ||
| Ibrahim Elatroush1; Mohamed Aseel Shokr2 | ||
| 1Corresponding Author: Ibrahim Elatroush. Associate Professor of Economics, Department of Economics, Tanta University, Faculty of Commerce, 18 Said Street, Tanta, Egypt. Postal code: 31521. E-mail: ibrahim.elatroush@commerce.tanta.edu.eg ORCID: 0000–0003–4276–0713.TP:+201128528888 | ||
| 2Associate professor of economics, department of Economics, Tanta University | ||
| Abstract | ||
| Abstract This study is conducted to explore the connection between unemployment and economic growth as described by Okun’s law. It also examines the Philips curve, which illustrates the inverse relationship between inflation and unemployment. Additionally, the study includes other independent variables, such as inflowed foreign direct investment (FDI), human capital (HC), government expenditure (GE), money supply (MS), and trade openness (TO) in the unemployment equation. The research involves a sample of 106 cross-countries categorized into emerging, developing, and least-developed countries from 2000 to 2021. Various econometric techniques, including first and second-generation unit root tests, Dumitrescu Hurlin panel causality tests, panel pooled mean group (PMG/ARDL), fully modified ordinary least squares (FMOLS), and dynamic ordinary least squares (DOLS) are utilized in the study. The robustness of these methods ensures the validity of the empirical results, which indicate that GDP, FDI, HC, GE, MS, INF, and TO have negative impacts on unemployment for all countries and developing countries. Conversely, there is a positive relationship between inflation and unemployment in emerging countries and between trade openness and unemployment in least-developed countries. To enhance the performance of government expenditure, attract productive FDI, improve human capital, increase per capita GDP, and reduce inflation in developing and least-developed countries, policymakers and authorities should prioritize fiscal and monetary policies aimed at enhancing these indicators to eliminate unemployment rates. | ||
| Keywords | ||
| Keywords: Output; Inflowed FDI؛ Government expenditure؛ Inflation؛ Trade Openness; Unemployment | ||
|
Supplementary Files
|
||
|
Statistics Article View: 3 PDF Download: 3 |
||
