ScholarLens Back to search
2013•Mediterranean Journal of Social SciencesOpen access

The Effect of Unemployment Rate on Gross Domestic Product: Case of South Africa

Teboho Jeremiah Mosikari

Open full text 40 citations

Abstract

Unemployment is the macroeconomic problem that affects individuals most differently and severely.This study investigates the effect of unemployment on gross domestic product in South africain. The annual time series used for the estimation cover the period 1980-2011. Using Augmented Dickey-Fuller (ADF) stationarity test, the variables proved to be integrated of order one. Johansen cointegration test was applied to determine the presence of cointegrating vectors in the variables. Also Granger causality test was applied, it was found that there is no causality found between unemployment rate and GDP growth. Finally, this study encourages all policies on economic growth with the idea that growth will bring employment in South African economy. DOI: 10.5901/mjss.2013.v4n6p429

Open-access reader

About this research paper

What this paper is about

Unemployment is the macroeconomic problem that affects individuals most differently and severely.This study investigates the effect of unemployment on gross domestic product in South africain. The annual time series used for the estimation cover the period 1980-2011. Using Augmented Dickey-Fuller (ADF) stationarity test, the variables proved to be integrated of order one. Johansen cointegration test was applied to determine the presence of cointegrating vectors in the variables. Also Granger causality test was applied, it was found that there is no causality found between unemployment rate and GDP growth. Finally, this study encourages all policies on economic growth with the idea that growth will bring employment in South African economy. DOI: 10.5901/mjss.2013.v4n6p429

Why it matters

OpenAlex reports 40 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Unemployment is the macroeconomic problem that affects individuals most differently and severely.This study investigates the effect of unemployment on gross domestic product in South africain. The annual time series used for the estimation cover the period 1980-2011. Using Augmented Dickey-Fuller (ADF) stationarity test, the variables proved to be integrated of order one. Johansen cointegration test was applied to determine the presence of cointegrating vectors in the variables. Also Granger causality test was applied, it was found that there is no causality found between unemployment rate and GDP growth. Finally, this study encourages all policies on economic growth with the idea that growth will bring employment in South African economy. DOI: 10.5901/mjss.2013.v4n6p429

Key concepts: Cointegration, Economics, Granger causality, Unemployment, Johansen test, Gross domestic product, Econometrics, Order (exchange)

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The Effect of Unemployment Rate on Gross Domestic Product: Case of South Africa — Research Paper | ScholarLens