UPM Institutional Repository

Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product


Citation

Abu Hassan Asari, Fadli Fizari and Mohamad, Zuraida and Alias, Teh Sofia and Shamsudin, Norazidah and Baharuddin, Nurul Syuhada and Jusoff, Kamaruzaman (2011) Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product. World Applied Sciences Journal, 12. pp. 61-66. ISSN 1818-4952; ESSN: 1991-6426

Abstract

Bearing in mind that GDP is the main indicator of a country’s standard of living, this paper attempts to study the correlations that exist between inflation rate and employment with GDP. The variables were selected based on relevant economic theories that allow such interactions among variables. The study has been done using multivariate times series analysis available in STATA software. In the long run, the results indicate that the inflation rate does not affect the GDP while the employment rate has negative relationship with the GDP. Granger Causality is applied to test the causality between the variables. The findings revealed that both independent variables have unidirectional relationship with GDP in the short run. It is to be concluded that by using time series data, the researcher can discern the movement of variables clearly. It is recommended that future researchers should improve the reliability and validity of the results by replacing the other independent variables such as level of income, population and others.


Download File

[img] Text (Abstract)
Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product.pdf

Download (49kB)
Official URL or Download Paper: https://www.idosi.org/wasj/wasj12(BES)2011.htm

Additional Metadata

Item Type: Article
Divisions: Faculty of Forestry
Publisher: IDOSI Publications
Notes: Special issue on Bolstering Economic Sustainability
Keywords: Multivariate time series analysis; Gross domestic product; Inflation rate; Employment rate
Depositing User: Muizzudin Kaspol
Date Deposited: 19 Jun 2014 02:24
Last Modified: 15 Jun 2020 07:45
URI: http://psasir.upm.edu.my/id/eprint/28505
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item