Unemployment, GDP Growth, Inflation.


Business | Education Economics | Family and Consumer Sciences


High unemployment particularly among youth is a serious burden for economy. There are many causes behind the high unemployment in the Escwa region, which differ from one country to another. Governments policies aim to solve this problem by creating new jobs symmetric with the sustainability of economic growth. These policies usually aim to increase growth rates and not to reduce unemployment. Inflation is another factor that has influence on unemployment rate, therefore economic growth and inflation are two factors that have impact on unemployment. Youth are the most affected group due to many reasons, the most important is the employment production act applied by within countries. For this purpose, this study investigates the influence of economic growth and inflation on youth unemployment in 16 countries belonging to the ESCWA region for the period 1991-2017. Pedroni Residual Cointegration Test statistic showed that there was no relationship between young unemployment, inflation and economic growth in ESWA’S economies. So, it can be clearly said that the series were not moving together for the long-term period. Furthermore, in this context, the results of Dumitrescu-Hurlin (2012) panel Granger causality test indicated that there is no causality relationship between youth unemployment and economic growth as well between inflation and economic growth. While a unidirectional causality moved from inflation to youth unemployment to inflation.

Author ORCID Identifier

Mohamed Khodor El daw - https://orcid.org/0000-0003-1280-0075





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