A study of the relationship between Economic Growth and Unemployment in India
Keywords:
Economic Growth, UnemploymentAbstract
The main goal of this research is to analyze the effects of economic development on unemployment in India. Descriptive statistics, Granger causality, and the Ordinary Least Squares model were used to examine the relationship between economic expansion and joblessness both before and after the Hodrick-Prescott filter was used to compensate for non-stationarity in the time series data. According to the results of a Granger causality test, neither UNEMP nor GDP can be said to have caused the other. However, the estimated regression of unemployment and economic growth as explanatory variables shows that the impact of economic growth on unemployment is only 6% and is inversely related to each other, while the remaining 94% is due to other factors that are negatively” affecting India's unemployment rate.
References
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