Impact of Inflation and Economic Growth on Unemployment in Sri Lanka: A Study of Time Series Analysis

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A.Thayaparan
A.Thayaparan
1 Vvauniya Campus of the University of Jaffna, Sri Lanka.

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This paper examines the effect of inflation and economic growth on unemployment in Sri Lanka for the period 1990-2012. To achieve this objective, secondary data has been taken from Central Bank annual reports for the above period. To test unit root or stationary, Augmented Dickey Fuller Test was used. In addition to that, ordinary least square technique and to determine the causality among the above variables Granger Causality test also were applied. Results of the unit root test indicate that only Gross Domestic Product (GDP) has stationary and unemployment and inflation have unit root problem or non-stationary at level. But when these two variables are tested at first difference then the problem of unit root has disappeared and hence they have become stationary at first difference.

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References

  1. Asoluka Njoku,Okezie,A Ihugba (2011). Unemployment and Nigerian economic growth for the period 1985-2009.
  2. Auwal Abubakar,Muhammad,Bello Malam Sa'idu,Obinna,John Nwokobia,Kabiru Musa,Y (2013). Effect of unemployment and inflation on wages in Nigeria.
  3. Ayesha (2013). The impact of inflation and economic growth on unemployment: Time Series Evidence from Pakistan 1973-2010 in Pakistan.
  4. Zeynep Karaçor,Ozmen,İbrahim,Yorgancılar,N Fatma (2010). Casusal relationship between unemployment, inflation and the minimum wage: Case of Turkey from 1987 to.
  5. Mahmoud Ali,J (2013). Impact of inflation and unemployment on Jordanian GDP.
  6. Muhammad Umair,U Raza (2000). Impact of GDP and inflation on unemployment rate of Pakistan Economy in.
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Funding

No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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A.Thayaparan. 2014. \u201cImpact of Inflation and Economic Growth on Unemployment in Sri Lanka: A Study of Time Series Analysis\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B5): .

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GJMBR Volume 14 Issue B5
Pg. 45- 53
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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September 3, 2014

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This paper examines the effect of inflation and economic growth on unemployment in Sri Lanka for the period 1990-2012. To achieve this objective, secondary data has been taken from Central Bank annual reports for the above period. To test unit root or stationary, Augmented Dickey Fuller Test was used. In addition to that, ordinary least square technique and to determine the causality among the above variables Granger Causality test also were applied. Results of the unit root test indicate that only Gross Domestic Product (GDP) has stationary and unemployment and inflation have unit root problem or non-stationary at level. But when these two variables are tested at first difference then the problem of unit root has disappeared and hence they have become stationary at first difference.

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Impact of Inflation and Economic Growth on Unemployment in Sri Lanka: A Study of Time Series Analysis

A.Thayaparan
A.Thayaparan Vvauniya Campus of the University of Jaffna, Sri Lanka.

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