Relationship Between Unemployment and Macroeconomics Aggregates: Evidence from Bangladesh
Creators: name: ‪Mohammad Mushfiqul Haque Mukit‬
name: Assim Ibrahim Abdel-Razzaq
name: MOHAMMAD SAFIQUL ISLAM
Publisher: name: figshare
Year: 2021
Subjects: subject: Economics
subject: 80708 Records and Information Management (excl. Business Records and Information Management)
subject: FOS: Media and communications
subject: FOS: Media and communications
subject: 140213 Public Economics- Public Choice
subject: FOS: Economics and business
subject: FOS: Economics and business
subject: 140214 Public Economics- Publically Provided Goods
subject: 140215 Public Economics- Taxation and Revenue
subject: 130203 Economics, Business and Management Curriculum and Pedagogy
subject: FOS: Educational sciences
subject: FOS: Educational sciences
subject: 149999 Economics not elsewhere classified
subject: 140201 Agricultural Economics
subject: 140210 International Economics and International Finance
subject: 140211 Labour Economics
subject: 140217 Transport Economics
subject: 149902 Ecological Economics
subject: 140204 Economics of Education
subject: 140209 Industry Economics and Industrial Organisation
subject: 140212 Macroeconomics (incl. Monetary and Fiscal Theory)
subject: 140216 Tourism Economics
subject: 140207 Financial Economics
subject: 140218 Urban and Regional Economics
subject: 140205 Environment and Resource Economics
subject: 140103 Mathematical Economics
subject: 140299 Applied Economics not elsewhere classified
subject: 140219 Welfare Economics

description: This paper examines relationship of unemployment rates with other macroeconomic aggregates in Bangladesh over 1991-2019 using robust econometric analyses. It sheds a<br>light on the fact that GDP growth rate, inflation, and foreign direct investment flows have statistically significant impacts on unemployment rate both in short-run and long-run.<br>More specifically, the paper documents that unemployment rate, GDP growth rate, inflation rate and foreign direct investment flows are co-integrated in long-run at 5%<br>significance level. Using Vector Error Correction analysis, the paper finds that co-integrated series converge it<br>their long-run equilibrium at a speed of 17.24% per annum at 1% significance level. In case short-run, the study finds that a unit increase in GDP growth rate decreases unemployment by approximately 0.0159 units in short-run at 1% statistically significance level. Likewise, a unit increase in inflation rate will lead approximately 0.004 units drop in unemployment rate at 10% significance level. Plus, it also observes that a unit in Foreign Direct Investment flows causes 0.005 units decrease in unemployment rate in short-run at 5% significance level.<br><br>________________________________________________________________________________________________________________________________________________APA Citation: <br>MUKIT, M. M. H., ABDEL-RAZZAQ, A. I., &amp; ISLAM, M. S. (2020). Relationship Between Unemployment and Macroeconomics Aggregates: Evidence from Bangladesh. Journal of Economics and Financial Analysis, 4(2), 45–61. DOI: https://doi.org/10.6084/m9.figshare.13661021.v2. Ashgabat-Turkmenistan, Russian Federation. _________________________________________________________________________________________________Published by Turkmen State Institute of Economics and Management, Turkmenistan <br><br>