Skip to main navigation menu Skip to main content Skip to site footer

Vol. 12 No. 05 (2025)
International Multidisciplinary Journal for Research & Development

Articles

THE RELATIONSHIP BETWEEN UNEMPLOYMENT RATE AND ECONOMIC GROWTH: AN ECONOMETRIC ANALYSIS BASED ON OKUN’S LAW

Published 2025-05-30

  • Fakhriddinova Sarvinoz Fazliddinovna

Fakhriddinova Sarvinoz Fazliddinovna
Assistant teacher of Samarkand Institute of Economics and Service

Abstract

This article examines the relationship between economic growth and unemployment in Uzbekistan based on Okun’s Law using econometric methods. The study builds a regression model based on macroeconomic indicators from 2000 to 2024 and calculates the Okun coefficient. The results demonstrate a negative impact of GDP growth on unemployment. The paper includes theoretical foundations, empirical analysis, and practical recommendations.

Keywords

Okun’s Law, economic growth, unemployment, econometric analysis, regression model, Uzbekistan, employment, macroeconomics.

DOWNLOAD PDF

References

  1. Suyunov, A. (2021). Inflation, Unemployment and Economic Growth Causality: Do Phillips and Okun’s Laws Work in Uzbekistan’s Economy? SSRN. https://ssrn.com/abstract=4400003
  2. Investopedia. (2012). Okun's Law: Economic Growth and Unemployment. https://www.investopedia.com/articles/economics/12/okuns-law.asp
  3. Knotek, E. S. (2007). How Useful is Okun's Law? Federal Reserve Bank of Kansas City. https://www.kansascityfed.org/documents/955/2007-How%20Useful%20is%20Okun%27s%20Law%3F.pdf
  4. Ball, L., Furceri, D., Leigh, D., & Loungani, P. (2021). Okun’s Law, Development, and Demographics (IMF Working Paper No. WP/21/270). International Monetary Fund. https://www.imf.org/-/media/Files/Publications/WP/2021/English/wpiea2021270-print-pdf.ashx
  5. Borsi, M. T., & Metiu, N. (2021). A spatial econometric multivariate model of Okun's law. Economic Modelling, 103, 105602. https://doi.org/10.1016/j.econmod.2021.105602
  6. Investopedia. (n.d.). Okun’s Law: Definition, Formula, History, and Limitations. https://www.investopedia.com/terms/o/okunslaw.asp
  7. Wikipedia contributors. (n.d.). Okun's law. In Wikipedia, The Free Encyclopedia. Retrieved May 30, 2025, from https://en.wikipedia.org/wiki/Okun%27s_law
  8. Suyunov, A. (2023). Inflation, Unemployment and Economic Growth Causality in Uzbekistan: Empirical Test of Phillips and Okun’s Laws. ResearchGate. https://www.researchgate.net/publication/369888166
  9. Number Analytics. (n.d.). How to Use Okun's Law Coefficient in GDP Models. https://www.numberanalytics.com/blog/use-okuns-law-coefficient-gdp-models
  10. Apergis, N., & Payne, J. E. (2024). Economic growth and unemployment nexus: Empirical test of Okun’s law. Journal of Economic Structures, 13(1), Article 7. https://journalofeconomicstructures.springeropen.com/articles/10.1186/s40008-024-00337-y

Downloads

Download data is not yet available.