التكامل الاقتصادي
Volume 11, Numéro 5, Pages 321-338
2023-09-30

Measuring The Impact Of Some Economic Variables On The Unemployment Rate In Algeria "an Econometric Study"



Authors : Benlaria Ahmed . Mediani Mohamed .

Abstract

This study examines the impact of economic variables on the unemployment rate in Algeria. Using data from the World Bank's World Development Indicators, an ARDL model is estimated to capture both short- and long-run effects. The results indicate that GDP growth, inflation, and population growth significantly influence the unemployment rate in Algeria. In the short run, lagged values of the unemployment rate have a significant impact on the current rate, suggesting a dynamic adjustment process. In the long run, higher GDP growth and inflation are associated with higher unemployment, while population growth is inversely related to unemployment. The stability of the estimated coefficients is confirmed through the CUSUM and CUSUMSQ tests. Policy implications highlight the importance of promoting economic growth, controlling inflation, managing population growth, and maintaining stability for reducing unemployment in Algeria.

Keywords

Unemployment rate ; GDP growth ; inflation ; population growth ; ARDL model ; Algeria

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