The Relationship between Unemployment and Economic Growth Rate in Arab Country

Shatha Abdul-Khaliq, Thikraiat Soufan, Ruba Abu Shihab


The main purpose of this paper is to examine the relationship between unemployment and GDP growth in Arab countries. We consider 9 Arab Countries between 1994 and 2010. The model adopted for testing the relationship is the Pooled EGLS (Cross-section SUR). It has been found that economic growth has negative and significant effect upon the unemployment rate it means that 1% increase in economic Growth will decrease the unemployment rate by 0.16%..

Keywords: Economic growth, Unemployment, GDP, Okun’s law, panel, Arab countries.

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ISSN (Paper)2224-607X ISSN (Online)2225-0565

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