Unemployment rate dynamics in small open economy: The case of Serbia
Dynamic relationship among unemployment rate and key macroeconomic variables is explored for the Serbian economy that has been characterized by high unemployment rates since the outcome of the Great Recession. This analysis reveals how effective policy measures can be in reducing unemployment rate....
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Economics institute, Belgrade
2020-01-01
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doaj-6d09d935f29a4cf29c9afb265d89907c2021-01-24T11:16:42ZengEconomics institute, BelgradeIndustrija0350-03732334-85262020-01-014847220350-03732004007AUnemployment rate dynamics in small open economy: The case of SerbiaAnić Aleksandra0https://orcid.org/0000-0002-3058-0777Mladenović Zorica1https://orcid.org/0000-0003-1579-4205University of Belgrade, Faculty of Economics, Belgrade, SerbiaUniversity of Belgrade, Faculty of Economics, Belgrade, SerbiaDynamic relationship among unemployment rate and key macroeconomic variables is explored for the Serbian economy that has been characterized by high unemployment rates since the outcome of the Great Recession. This analysis reveals how effective policy measures can be in reducing unemployment rate. Cointegrated vector autoregressive model is employed for the period 2014-2019. Prior to multivariate dynamic modelling, the validity of hysteresis hypothesis for unemployment rate is assessed. Obtained results show significant negative long-run effect of real wages on unemployment rate, and positive long-run effect of real effective exchange rate appreciation on real wages. For further reduction of unemployment rate demand-side measures should be employed.https://scindeks-clanci.ceon.rs/data/pdf/0350-0373/2020/0350-03732004007A.pdfunemploymenthysteresis effectcointegrationvar modeldynamic relationship |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Anić Aleksandra Mladenović Zorica |
spellingShingle |
Anić Aleksandra Mladenović Zorica Unemployment rate dynamics in small open economy: The case of Serbia Industrija unemployment hysteresis effect cointegration var model dynamic relationship |
author_facet |
Anić Aleksandra Mladenović Zorica |
author_sort |
Anić Aleksandra |
title |
Unemployment rate dynamics in small open economy: The case of Serbia |
title_short |
Unemployment rate dynamics in small open economy: The case of Serbia |
title_full |
Unemployment rate dynamics in small open economy: The case of Serbia |
title_fullStr |
Unemployment rate dynamics in small open economy: The case of Serbia |
title_full_unstemmed |
Unemployment rate dynamics in small open economy: The case of Serbia |
title_sort |
unemployment rate dynamics in small open economy: the case of serbia |
publisher |
Economics institute, Belgrade |
series |
Industrija |
issn |
0350-0373 2334-8526 |
publishDate |
2020-01-01 |
description |
Dynamic relationship among unemployment rate and key macroeconomic variables is explored for the Serbian economy that has been characterized by high unemployment rates since the outcome of the Great Recession. This analysis reveals how effective policy measures can be in reducing unemployment rate. Cointegrated vector autoregressive model is employed for the period 2014-2019. Prior to multivariate dynamic modelling, the validity of hysteresis hypothesis for unemployment rate is assessed. Obtained results show significant negative long-run effect of real wages on unemployment rate, and positive long-run effect of real effective exchange rate appreciation on real wages. For further reduction of unemployment rate demand-side measures should be employed. |
topic |
unemployment hysteresis effect cointegration var model dynamic relationship |
url |
https://scindeks-clanci.ceon.rs/data/pdf/0350-0373/2020/0350-03732004007A.pdf |
work_keys_str_mv |
AT anicaleksandra unemploymentratedynamicsinsmallopeneconomythecaseofserbia AT mladenoviczorica unemploymentratedynamicsinsmallopeneconomythecaseofserbia |
_version_ |
1724326531838246912 |