Short and Long Term Relationship between Economic Growth and Unemployment in Egypt: An Empirical Analysis

Fouzeia Mohmed Alhdiy, Fuadah Johari, Siti Nurazira Mohd Daud, Asma Abdul Rahman

Abstract


This study aims to examine the relationship between growth and unemployment in Egypt between 2006 Q1 - 2013 Q2. The Dickey-Fuller (ADF) unit root test, the Johansen Co-integration test and the Standard Granger Causality test were applied to examine the relationship between unemployment and Gross Domestic Product (GDP). The results indicated there were no co-integration relationship between the variables of unemployment and GDP specifically implying there is no long-term relationship between the variables. However, in the short term, there is a direct causality relationship have been observed between the unemployment rate to economic growth.

DOI: 10.5901/mjss.2015.v6n4s3p454


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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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