ISSN: 1648 - 4460

International Journal of Scholarly Papers

VU KHF

Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2014
  • © Brno University of Technology, 2002-2014
  • © University of Latvia, 2002-2014
Article
TESTING THE LINKAGES BETWEEN OUTPUT GROWTH, INFLATION AND EMPLOYMENT GROWTH: EVIDENCE FROM A PANEL VECTOR AUTOREGRESSION
Guglielmo Maria Caporale, Marinko Skare

ABSTRACT.This paper analyses the linkages between output growth, inflation and employment growth for 119 countries over the period 1970-2008 using a panel VAR approach. It shows the existence of statistically significant relationships as well as heterogeneity across countries and panels. It also reports evidence on whether or not there is a trade-off between inflation and employment, employment growth and output growth which can be exploited by policy makers.

KEYWORDS: inflation, output growth, employment growth, panel VAR, impulse response.

JEL classification: C23, E24, E31, E60.

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Scholarly papers Transformations in Business & Economics
Kaunas Faculty
Vilnius University
MuitinÄ—s g. 8
Kaunas, LT-44280
Lithuania

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