مجلة معهد العلوم الإقتصادية
Volume 21, Numéro 2, Pages
2018-10-28

The Relationship Between Unemployment And Output In Algeria (1989-2016)

Authors : Kori Yahia Abdellah .

Abstract

The objective of this paper is to investigate the relationship between economic growth and change of unemployment rates (Okun's Law) in Algeria for the 1989- 2016 period. The difference and the dynamic version of Okun’s law and the Autoregressive Distributed Lag (ARDL) linear model are employed to estimate the Okun coefficient. The results indicate a low negative Okun coefficient of about -0.78 % which explains the still high level of unemployment in Algeria, despite investment programmes implemented by the government to support economic growth.

Keywords

Dynamic Linear Models, Unemployment, Okun Coefficient.