iterature unemployment rate and economic growth in

iterature
Review:

Mahmood et al. (2011) The study was held in Peshawer
Division, Pakistan which highlighted the many causes of unemployment rate there
and the regression  model contains
population growth rate, resources are not available, red ribbon and mismatch
between the education people are getting and the job opportunities which
further creates frictional unemployment in the country.

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According to Tahir Mahmood, Amjid ali, Noureen
Akhter and Mohammad Iqbal (2014), There paper was to identify the significant
and insignificant determinants of unemployment through various software such as
SPSS, E-views, Mini tab and Microsoft Excel software to estimate the data. For
this study they have taken the time series data from 1990-2010 period. In this
research paper the variables they includes unemployment rate as dependent
variable whereas Gross domestic product, foreign direct investment and budget
deficit are taken as independent variable. So through different test like
normality, independence, homoscedasticity, auto-correlation and regression the
results shows that there is positive relation between labor force and
unemployment and on the other hand inflation and foreign direct investment has
an inverse relationship.

A. Kamran and S. Shujaat (2013), the research paper
was done through the E-views to estimate the significant causes and effects of
unemployment rate from the secondary data of time period from 1981-2010. There
were many explanatory variables takes under this study as Foreign direct
investment, population growth rate, literacy rate, political regime was done
under dummy variables, interest rate, gross domestic product and the areas was
also differentiated by rural and urban areas. So, after the test the results
explains that the foreign direct investment, inflation rate and population
growth rate has no existence relationship with the unemployment rate whereas
literacy rate and gross domestic product has significant impact on the
unemployment rate.

Onwachukwu Chinedu Increase (2015), the study
examines the relationship between unemployment rate and economic growth in
Nigeria. It was time series data from 1985-2010. The research was carried by
Ordinary Least Square method and Augmented Dickey-Fuller method which shows
that there is no significant impact or relationship between unemployment rate
and economic growth.

According to Muhammad Shahid (2013), Jaradat (2013)
found the impact of unemployment and inflation on Jordanian Gross Domestic
Product (GDP). He used the time series data from the year of 2000 to 2010. He
collected the data from global bank database. He used the liner regression
method through SPSS to estimate the relation between dependent and independent
variables. His results indicates that when Unemployment decreases 0.697% then
GDP will increases by 1%. Overall results intimate that GDP and Unemployment
have negative significant relationship.

According
to Waqas Qayyum (2011) study, examine the causes of youth unemployment in
Pakistan. The data was taken for this research from secondary source of labour
force survey (2003-2004) of Pakistan. The paper concludes that due to
structural mismatch there is higher unemployment rate in urban areas as compare
to rural and mismatch is due to required skills, poor wage system and the lack of improper
future counseling and training skills. The result shows the single person or
individual are more unemployed than the married person and furthermore, there
is high rate of unemployment in females as compare to males.

 

The study conduct by Ozturk and
Akhtar (2009), was whether the unemployment can be heal by the foreign direct
investment and economic growth in Turkey. The research was done for the short
and specific time period for 7years from 2000-2007. So the dependent variable
was unemployment rate and explanatory variables are economic growth and foreign
direct investment which indicates that the gross domestic product has positive
impact due to the fluctuations in the exports and gives insignificant result.
On the other hand foreign direct investment does not relieve or diminish the
unemployment rate in Turkey and the recommendation was given to increase its
exports.

 

 

Janiak (2006), estimates that
whether trade liberalization leads to job loss as there is any link or relation
between the trade exposure and equilibrium unemployment. The work indicates
that greater equilibrium unemployment is depends on the higher trade exposure.
According to his conclusion if there will be more industries and firm to
produce more goods and services than these industries can diminish the unemployment,
which was high due to less productivity in the country previously. High
productivity from firms will create more job opportunities and increase the
spending level.

 

 

Haider and Haider (2006) featured
the importance of urbanization in Pakistan and they tried to calculate that
until 2013 all the people who are currently living in urban areas will be raise
themselves by 140% as an increase of urban population can be seen. They concluded that if this keeps on
going then the growth being seen in urban population will spread unemployment
in the country as a share of total population. This unemployment will therefore
convince the jobless people to involve themselves in social crimes which is bad
the economic growth. Lastly, they also proposed that urbanization might turn
out beneficial as if people keep on moving themselves from rural areas to urban
areas, this would improve their living standards and to find better lifestyle
in cities and that is why they came to this point that this rapid growth of urbanization
can’t turn out harmful for the economy.

 

 

Kalim (2003) researched on the
motives of unemployment in Pakistan. She found out the statistical relation
between unemployment, population growth and GDP growth rate and came to this
conclusion that there is a positive relationship between unemployment and
population growth hence negative relationship between unemployment for the
specific data. However, just a simple regression was used to find that
population growth is comparatively high than other developing countries, but
most of people still remain unemployed. It might be due to less employment
schemes and large scale operations, therefore she concluded that population
growth and GDP are main causes of unemployment in Pakistan.

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