Investigating the Impact of the Economic Growth Rate on the Actual and NAIRU Unemployment in Iran's Provinces

Document Type : Scientific paper

Authors

1 PhD student, Faculty of Management and Economics, Islamic Azad University Science and Research Branch, Tehran, Iran

2 Professor, Faculty of Management and Economics, Islamic Azad University Science and Research Branch, Tehran, Iran

3 Associate Professor, Department of Economics, Tehran University, Tehran< Iran

Abstract

Abstract: The comperehensive analysis of economy should consider three main macreconoomics varibales such as; Inflation Rate, Unemployment Rate and Economics Growth Rate that Okun 's Law could be accompolish this important issue, by using Actual and NAIRU Unemployment. In this paper, Unemployment Rate following with the Non Accelerating Inflation Rate in Iran's provinces is estimated by using Space –State and Filtering Methods (Kalman Filter); then the relationship between Economic Growth rate and Unemployment Rate (Natural and Rael) in Iran's provinces is investigated seasonally during the period 2006-17 by using Generalized Method of Moments (GMM). The results indicate that an irregular gap between the Real Unemployment Rate and NAIRU in Iran's provinces and in the entire country. Moreover, according to the results of this paper, increasing economic growth with oil in the provinces does not have a significat effect on employment, but economic growth without oil will lead to reduction in unemployment in Iran's provinces and confirmation of the Okan's law.These result indicate that oil sector in Iran's economy is not indogenous and no effects on Labour Market in provinces.

Keywords

References

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Macroeconomics Research Letter
Volume 14, Issue 28
April 2020
Pages 61-84

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History

  • Receive Date: 27 April 2019
  • Revise Date: 02 July 2019
  • Accept Date: 13 September 2019

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