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The validity of Okun’s Law: Evidences from Indian economy
- Source :
- Theoretical and Applied Economics, Vol XXVI, Iss 4, Pp 273-278 (2019)
- Publication Year :
- 2019
- Publisher :
- General Association of Economists from Romania, 2019.
-
Abstract
- Unemployment is one of the most prominent issues being faced by developing countries especially India. Unemployment means productive resources not being utilized at all, which results low growth rate in real GDP. In macroeconomic terminology this relationship is called as Okun’s Law. The main aim of this paper is to examine whether there exists an Okun type relationship in Indian economy or not. Empirical result shows negative and significant effect of growth upon unemployment rate. Our model suggests that 1% increase in GDP will decrease unemployment rate by 0.4 percentage point.
Details
- Language :
- English
- ISSN :
- 18418678 and 18440029
- Volume :
- XXVI
- Issue :
- 4
- Database :
- Directory of Open Access Journals
- Journal :
- Theoretical and Applied Economics
- Publication Type :
- Academic Journal
- Accession number :
- edsdoj.b16d36508a264250b73949c3eaea0e2f
- Document Type :
- article