Preprint Article Version 2 Preserved in Portico This version is not peer-reviewed

Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia

Version 1 : Received: 28 May 2021 / Approved: 31 May 2021 / Online: 31 May 2021 (12:03:35 CEST)
Version 2 : Received: 22 June 2021 / Approved: 23 June 2021 / Online: 23 June 2021 (13:11:14 CEST)

How to cite: Conteh, K. Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia. Preprints 2021, 2021050759 (doi: 10.20944/preprints202105.0759.v2). Conteh, K. Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia. Preprints 2021, 2021050759 (doi: 10.20944/preprints202105.0759.v2).

Abstract

The purpose of this study is to examine the connection between economic growth and unemployment in Liberia between 2001 and 2019. The unit root test and the Augmented Dickey-Fuller (ADF) Co-integration test were used to examine the relationship between unemployment and GDP. The Auto Regressive Distribution Lag (ARDL) bounds test is used to determine if the variables are linked in the long run. According to the results of the ARDL model, there is no long-run relationship between unemployment and economic growth. This study' results have particularly important policy implications for Liberian economic authorities. In both the long and medium term, the observational results showed no meaningful relationship between unemployment and economic growth. The Liberian government should direct its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation, and finally, the government should prioritize labor intensive industries.

Subject Areas

Okun's law; unemployment rate; Economic Growth; Liberia

Comments (1)

Comment 1
Received: 23 June 2021
Commenter: Kaiballah Conteh
Commenter's Conflict of Interests: Author
Comment: There were some changes in the introduction and Literature review. Some inaccuracies in the data and interpretation were corrected.
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