BS ECONOMICS

Permanent URI for this community

https://escholar.umt.edu.pk/handle/123456789/7204

Browse

Browsing BS ECONOMICS by Author "Bakhtawar Ijaz"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    What Determines Unemployment? Time Series Evidence from Pakistan
    (UMT, Lahore, 2015) Bakhtawar Ijaz
    Unemployment is a standout amongst the most critical issues in macroeconomics. Unemployment makes numerous financial and social issues in the economy. This is predictable to address this issue by method for recognizing the reasons which impact the level of employment. This paper decides the variables that impact the employment level in Pakistan. Five critical autonomous variables are chosen as determinants which include urban population, Gini coefficient, GDP per capita, financial instability and trade. This study discovered the determinants of unemployment by concerning the ARDL (Autoregressive Distributed Lag) bound technique to manage investigate co-integration for long run and ECM (error correction method) for short run correlation using the time arrangement data from 1972 to 2013.The unit root issue has been handled by ADF (Augmented Dickey Fuller) and PP unit root test. The outcomes show that unemployment has positive relation with urban population, Gini coefficient and financial instability. While it has negative relation with GDP per capita. Also, trade indicating both the negative and positive relation with unemployment in different scenario. The urban populace as offer of total populace is essentially growing unemployment as time goes on, while, it diminishes unemployment in the short run. The subject of this study is to investigate the possible outcomes to avoid any further addition in unemployment level and if possible to diminish the pay income inequalities in Pakistan so that advantages of development are fairly circulated to all areas of the population.