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The correlation between real growth domestic product and unemployment in Ethiopia

Author: 
Endashaw Sisay Sirah and Dr. Showkat Ahmad shah
Subject Area: 
Physical Sciences and Engineering
Abstract: 

Okun found that amid the period 1947-1957 remained a reverse correlation between economic progressas well as unemployment within US. Okun assessed that a 3 per cent increment in genuine GNP would lead to a one per cent diminish within the unemployment rate. Here the impartial think about stands to see the link of economic growth and joblessness rate from 1984-2019. The strategy which connected on this ponder is amended Dickey-Fuller test and auto-regressive distributed lag model. The consider result inferred, there's critical positive short run relationship between economic growth and joblessness in Ethiopia; in lengthy it is unswerving but immaterial. The researcher prescribes that the government ought to increment economic growth which basically to capture more unemployment rate, this moreover offer assistance the government to dodge a positive relationship between those two variables.

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