The Relationship between Financial Development and Unemployment in Selected Countries of the European Union
Bibliographic Data
| ID | 12417969 |
|---|---|
| Authors | Serhan Çiftçioğlu (Mersin Üniversitesi, corresponding author), Murad A Bein (0000-0002-3248-4316, Cyprus International University) |
| Year | 2017 |
| Volume | 25 |
| Issue | 2 |
| Pages | 307-319 |
| Publication date | 2017-02-19 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | European Review (JOURNAL) |
| Journal identifiers | ISSN: 1062-7987 • E-ISSN: 1474-0575 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s1062798716000600 |
| OpenAlex | W2588017506 |
| Language | EN |
| Citations received | 2 |
| References cited | 15 |
This article empirically examines the relationship between alternative measures of financial development and the unemployment rate in a selected group of ten EU countries. Using annual data for the sample period of 1991–2012, we first perform different panel regressions (using averaged and non-averaged versions of data) for unemployment rate. These panel regressions are based on a regression equation that includes inflation rate and growth rate of GDP, in addition to the level of financial development, as explanatory variables. Secondly, we apply Granger causality tests to investigate the nature of the causality between financial development and the unemployment rate for each country in our sample. The empirical findings suggest that unemployment rate and financial development are negatively correlated, and there is a statistically significant causal effect of financial development on unemployment in certain countries. However, the results are not robust to the choice of proxy measure for financial development
Causality (physics · Econometrics · Economics · Eu countries · European union · Granger causality · Inflation (cosmology · Inflation rate · Interest rate · International economics · Macroeconomics · Panel data · Proxy (statistics · Sample (material · Statistics · Unemployment · Unemployment rate · Fiscal Policy and Economic Growth · Mathematics · Monetary Policy and Economic Impact · Unemployment and Economic Growth
Money and Economic Growth
Financial markets and the allocation of capital
Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root
Testing for a unit root in time series regression
Investigating Causal Relations by Econometric Models and Cross-spectral Methods
Financial development and economic growth
The direction of causality between financial development and economic growth
Financial liberalization, financial sector development and growth
Financial Development and Economic Growth in Underdeveloped Countries
| Citations per year | 0.33 |
|---|---|
| Citation span | 2020 - 2022 (3) |
| Highly cited | No |