Political Instability

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The research which has one of the most concerning topic is of question concerning the instability of political assumption in which relating it with economic performance in a country. All these studies has declared that political instability factor is deadly for economical performance in both developed and developing economies. When youth is set to be more than 35% of the adult population, which results as developing countries, the risk of conflict based on armed is 150% higher than in countries with an age based structure like countries which are developed. The same year, number of 44 developing countries experienced youth knots of 35% or above. Thus, Urdal (2006) shows that increase in youth populations are sometimes outbroken and linked …show more content…

The results showed that there is a significantly impact of real GDP, consumer price index and previous unemployment rate on the unemployment rate. Variables discussed in the study were privatization, population, consumption expenditure, interest rates, exchange rates, technology, agricultural domestic product, real wage rates, and agricultural investment. The results showed that there is a significant positive impact of national unemployment, national investment, exchange rate and average per capita share of GDP on the volume of GDP. Lui (2009) studied the relationship between inflation and unemployment in a situation where inflation has differential outcomes on employed & unemployed workers. A higher rate of inflation increases workers’ incentives to work & generates a negative effect on unemployment. Unemployment, poverty, crimes, and inflation were used as variables. Shocks in real GDP, prices, exchange rate, bank interest rates, money supply and unemployment were selected as variables. Shocks lead to a decrease in unemployment and showed that positive interest rate shocks leads to increase the unemployment. Variables selected for the study were unemployment, inflation, and index of agricultural production, index of petroleum production, money supply, exchange rate, and changes in real GDP, savings, work stoppages and trade disputes. It is concluded that the response of …show more content…

According to this model, the unemployment depends on job offer and job acceptance. The labour market of Egypt is starving from a span of high overall unemployment, where unemployment is flourishing with constant rate. Kalim (2003) worked on determinants of unemployment in Pakistan. She analyzes the statistical relationship between unemployment, population. There is a positive relationship between unemployment and population and an inverse relationship between unemployment and GDP over a period of 1986-1999. They worked on both micro and macro determinants of youth unemployment issues in Pakistan. First, unemployment of youth only begins to decrease if the annual growth rate of GDP is greater than 4.25 percent per year. Second, the growth rate of services sector GDP has greater impact on decreasing female unemployment. The results showed that there is an inverse relationship between investment and unemployment and the positive relation between unemployment and unionsation, crude oil prices, appreciation of real exchange rate and strict monetary policy. Eita and Ashipala (2010) worked on determinants of unemployment in Namibia for the period of 1971-2007.They used macro-economic variables 196 Pakistan Economic and Social Review for unemployment model. The results showed that there is negative relationship between inflation and unemployment, positive between

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