DO MACROECONOMIC DETERMINANTS SUBSTANTIALLY AFFECT UNEMPLOYMENT?

• Main Author: Mohammad MUSHFIQUL HAQUE MUKIT
• Format: Article
• Language: English
• Published: Technopress 2020-12-01
• Series: Journal of Public Administration, Finance and Law
• Subjects: economic growth; fdi; inflation; unemployment;
• Online Access: http://www.jopafl.com/uploads/issue18/DO_MACROECONOMIC_DETERMINANTS_SUBSTANTIALLY_AFFECT_UNEMPLOYMENT.pdf

Bangladesh is a developing country that wants support for economic growth from other countries. This is would accomplish by receiving a large amount of foreign direct investment (FDI) that leads to a higher rate of jobs. Higher jobs contribute to better Bangladeshi life while rising its gross domestic product (GDP). However, unemployment remains one of the major problems facing the world today. The research analyzed the long-run and short-run relationships between unemployment and its macroeconomic determinants over the period 1991-2018/19, including industry value-added, inflation rate, foreign direct investment (FDI), urban population growth, and real gross domestic product (RGDP). This research employed the Johansen co-integration, Vector Auto Regression (VAR) testing method, the Augmented Dickey-Fuller (ADF) to unit root. The outcome of the regression indicates that the long-run unemployment rate explained by foreign debt, inflation, FDI, population growth, and RGDP. Therefore, we propose some economic proposals that the outcome of this study.