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Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis


Subramaniam, Thirunaukarasu and Baharumshah, Ahmad Zubaidi (2011) Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis. The Singapore Economic Review, 56 (3). pp. 327-347. ISSN 0217-5908; ESSN: 1793-6837


This paper investigates the existence of long-run relationship between unemployment and several key macroeconomic variables in Malaysia, Singapore, and the Philippines. The Johansen–Juselius cointegration method confirms the existence of a stationary long-run cointegration relationship between unemployment and its determinants in all three countries. Exports and foreign direct investment are important determinants of unemployment in Malaysia. In the Philippines, government spending and exports are inversely related to unemployment. In Singapore, only exports appeared as a significant factor in determining unemployment. The results show that the speed of adjustment following a shock is more rapid in Singapore compared to the other two ASEAN countries.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Graduate School of Management
DOI Number: https://doi.org/10.1142/S0217590811004353
Publisher: World Scientific Publishing
Keywords: Unemployment; Speed of adjustment; Malaysia; Singapore; The Philippines
Depositing User: Nabilah Mustapa
Date Deposited: 31 Jul 2015 12:49
Last Modified: 18 Feb 2016 02:54
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1142/S0217590811004353
URI: http://psasir.upm.edu.my/id/eprint/22843
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