Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158819
Authors: 
Abou Hamia, Mohamad A.
Year of Publication: 
2016
Citation: 
[Journal:] Journal for Labour Market Research [ISSN:] 2510-5027 [Volume:] 49 [Year:] 2016 [Issue:] 3 [Pages:] 239-251
Abstract: 
In this study, we use Okun's Law to examine whether growth has been jobless in seventeen MENA countries. The methods used are the ARDL approach for the individual country and the panel data analysis for the entire sample. The period considered in this study is from 1980 to 2013. To test for results robustness, we estimate the dynamic difference and three gap models based on three de-trending techniques: the HP filter, the BK filter, and the quadratic trend. Our findings can be summarized as follows: First, the estimation results suggest that Okun's Law is valid, and hence job creation is associated with growth in only six of the seventeen countries, namely Algeria, Egypt, Iran, Jordan, Lebanon, and Turkey. Second, our results reveal that the valid estimates are, in general, bigger in Arab than non-Arab countries in the sample. Third, the CUSUM of squares test confirms that Okun's Law is stable in Algeria, Egypt, and Iran, unstable in Jordan, and ambiguous in Lebanon and Turkey. Fourth, our panel data analyses suggest that Okun's Law is valid for the entire MENA sample; however, our estimations reveal that the impact of GDP growth is weak on job creation in the region. Finally, our individual and panel estimations are not robust as they are sensitive to the choice of the estimation model and to the de-trending method.
Subjects: 
Okun's Law
Wirtschaftswachstum
Beschäftigungsentwicklung
Beschäftigungseffekte - internationaler Vergleich
Arbeitslosigkeitsentwicklung
Bruttoinlandsprodukt
Nahost
Nordafrika
Algerien
Bahrain
Ägypten
Iran
Jordanien
Kuwait
Libanon
Marokko
Oman
Katar
Saudi-Arabien
Sudan
Syrien
Tunesien
Türkei
Jemen
Vereinigte Arabische Emirate
JEL: 
E24
E32
J01
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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