Namibia Overview: Development news, research, data | World Bank Following a time of . Volume 7, Issue 5, December 2021, Pages 7-16, DOI: 10.18775/ijied.1849-7551-7020.2015.75.2001 Technological change may make some skills obsolete or require new ones. There is a negative relationship between inflation and financial development. Of course, the economy may not be operating at its natural level of employment, so unemployment may be above or below its natural level. Moreover, the Durbin-Watson (D.W.) measures the correlation between the residuals and estimates whether autocorrelation exists in the model. In this study, we attempt to investigate and compare how these tools affect unemployment level in Nigeria. Y oung Americans are enduring staggeringly high rates of joblessness. The study employed various econometrics analyses, encompassing unit root tests, Ordinary Least Squares (OLS), and Granger causality test. with the unemployment rate. Another reason there can be unemployment even if employment equals its natural level stems from potential mismatches between the skills employers seek and the skills potential workers offer. The official measures of employment and unemployment can yield unexpected results. In the model, R2 is the coefficient of determination determining the degree to which the predictor variable(s) can account for a systematic variation in the regressand variable. The Relationship Between Inflation and Unemployment in Namibia Within the Framework of the Phillips Curve. (3) New management strategies to reduce costs may be promoting leaner staffing. Investigating the relationship between the bank rate, unemployment and inflation: The Phillips Curve in Namibia. Lastly, the t-statistic tests the null hypothesis where the coefficient of zero for the regressor implies that it has no effect on the regressand. Unemp = _0 + _1 Inf, where _0 is the constant while _1 represents the coefficient of the variables. Chapter 1: Economics: The Study of Choice, Chapter 2: Confronting Scarcity: Choices in Production, Chapter 4: Applications of Demand and Supply, Chapter 5: Macroeconomics: The Big Picture, Chapter 6: Measuring Total Output and Income, Chapter 7: Aggregate Demand and Aggregate Supply, Chapter 9: The Nature and Creation of Money, Chapter 10: Financial Markets and the Economy, Chapter 13: Consumptions and the Aggregate Expenditures Model, Chapter 14: Investment and Economic Activity, Chapter 15: Net Exports and International Finance, Chapter 17: A Brief History of Macroeconomic Thought and Policy, Chapter 18: Inequality, Poverty, and Discrimination, Chapter 20: Socialist Economies in Transition, Appendix B: Extensions of the Aggregate Expenditures Model, Figure 5.4 Computing the Unemployment Rate, Figure 5.5 The Natural Level of Employment, Figure 5.6 Unemployment Rate, 19602011, Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. The study used a different approach by adding interest rates to the model. Rising Unemployment in Nigeria: Public Debt to the Rescue? Stagflation insinuates that inflation and unemployment move in the same direction, implying a positive relationship between the two variables. The case of college graduates engaged in job searches is a good example of frictional unemployment. They encourage firms seeking workers and workers seeking jobs to register with them. Unemployment Rate - Countries - List | Africa - TRADING ECONOMICS Explain how unemployment is measured in the United States. Lastly, Granger causality test was employed to determine the causal relationship between the variables. In principle, whether unemployment rate in the country is at 51 percent, 15 percent, 10 percent or even 5 percent, it is still unemployment which denies Namibians food on their tables. BRIC . In 1968, Friedman (1968) criticized the idea of a perpetual downward sloping of the Phillips Curve. Ogbokor, C. A. Those who did not land a job while still in school will seek work. Universal Journal of Accounting and Finance, Horizon Research Publishing(HRPUB) Kevin Nelson, The Nexus between Consumer Confidence and Economic Growth in South Africa An ARDL Bounds Testing Approach, West African Financial and Economic Review, International Journal of Economics & Management Sciences, Facta Universitatis, Series: Economics and Organization, Journal of Economics and International Finance, Global Journal of Human Management and Business Research: B-Economics and Commerce, Fiscal and Monetary Policy for Decent Employment in Nigeria, The Impact of Fiscal Deficit on Inflation in Namibia, The effects of fiscal operations on economic growth and stability in Nigeria, Impact of fiscal policy variables on economic growth in Nigeria (1970-2012): a managerial economics persperctive, An Empirical Investigation Between Money Supply, Inflation, Capital Expenditure and Economic Growth in Nepal, Government expenditure on human capital and growth in Namibia: a time series analysis, An Analysis of Consumption and Investment Expenditure on Economic growth in Nigeria, An assessment of the relationship between public debt, government expenditure and revenue in Namibia, Symmetric and Asymmetric Effects of Inflation on Government Expenditure in Nigeria 1, MACROECONOMIC POLICIES AND ECONOMIC GROWTH IN NIGERIA, Analysis of Government Expenditure and Sectoral Employment in the Post-apartheid South Africa: Application of ARDL Model, Monetary Policy Instruments and Economic Growth in Nigeria; Realities, The Effectiveness of Monetary and Fiscal Policies in Stimulating Real Sector Output in Nigeria: The Need for Monetary-Fiscal Coordination, FISCAL POLICY IMPLEMENTATION AND ECONOMIC GROWTH IN NIGERIA, Analysis of Budget Imbalance Dynamics in Kenya, The Impact of Money Supply on Nigeria Economy: A Comparison of Mixed Data Sampling (MIDAS) and ARDL Approach, Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria, Responsiveness of Unemployment to Inflation: Empirical Evidence from Nigeria, Energy Consumption and Inflation Dynamics in Nigeria: An ARDL Cointegration Approach. These results correspond to the findings that incorporated the periods of economic shocks; thus, adjudging the critics of the Philips Curve regarding the consideration of economic shockwaves to be nonsensical in the Namibian economy. . Is an Associate akanboa@unisa.ac.za Professor of Economics at University of South Africa Tel: +27124334637. Therefore, the economy of Bangladesh exhibits stagflation. The Phillips Curve emerged in 1958 when Alban William Phillips of the London School of Economics estimated the relationship between unemployment and the rate of change of money wages (inflation) with particular reference to the United Kingdom. Some workers are looking for jobs, and some employers are looking for workers. All numbers are in thousands. Over the past five years, the Namibian economy registered an average growth rate of 4.3 percent. From the continental perspective, Oba and Enoh (2020) conducted a study to validate the Phillips Curve in Nigeria using time series quarterly data for inflation and unemployment from 2010 to 2018, employing the Generalized Methods of Moments and Canonical Cointegration Regression methods. Journal of Social Sciences, 1(4), 243-245. Overview Namibia is a higher-middle-income country with an estimated annual GDP per capita of US$5,828 but has extreme inequalities in income distribution and standard of living. In that light, the applicability of the Phillips Curve concerning the Namibian economy remains unclear and continues to invite further debate. Nevertheless, Ogbokor (2005) applied the Ordinal Least Square (OLS) model to investigate the applicability of the short-run Phillips Curve in Namibia, employing time series data from various publications covering the period 1991 to 2005. A 1% increase in capital expenditure leads to an increase of 3.94% in income. The problem of understating unemployment among women has been fixed, but others remain. PDF Sources of unemployment in Namibia: an application of the structural Even though the study of Ogbokor (2005) did also not encompass the period of the crises, it used a shorter period compared to the period of this study. DOES THE EXPORT-LED GROWTH (ELG) HYPOTHESIS HOLD FOR SERVICES EXPORTS IN NIGERIA, FISCAL OPERATIONS AND MACROECONOMIC GROWTH: THE NIGERIAN EXPERIENCE. Many state agencies, for example, serve as clearinghouses for job market information. If information about the labor market were costless, firms and potential workers would instantly know everything they needed to know about each other and there would be no need for searches on the part of workers and firms. Similarly, Kunst (2011) used the Vector Auto Regression (VAR) model to estimate the Phillips Curve for the United States to test for a determining relationship with the Phillips curve variables, using time series quarterly data from 1949 to 2014. (PDF) Promoting Entrepreneurship amid Youth in Windhoek's Informal And poor or costly transportation may block some urban residents from obtaining jobs only a few miles away. Relate the natural level of employment to the natural rate of unemployment. The study also found a unidirectional causality running from fiscal deficit to inflation in Namibia. Research Leap is where business practice meets research. The overall results indicate that fiscal operations lead to economic growth as shown by the Baseline model; and it also leads to economic stability as revealed by the Alternative model. May 12, 2023 The unemployment rate in Namibia decreased to 20.85 percent since the previous year. (2018) analyzed the existence of the Phillips Curve in ten high-income countries from 1990 through 2014 using panel data analyses, such as panel unit root tests, panel cointegration tests, and panel Granger causality tests. Unemployment in Namibia Within the Framework of the Phillips Curve 1Johanna Pangeiko Nautwima, 2Asa Romeo Asa 1Namibia Business School, . Economists have documented that monetary and fiscal policies are effective tools for influencing economic variables such as the unemployment rate. Information in the labor market will always have a cost, and that cost creates frictional unemployment. Therefore, the Phillips Curve depicts that an increase in one variable results from a decrease in the other variable, denoting the impossibility of simultaneously lowering unemployment and inflation rates (Shaari et al., 2018). From the rest of the world, Wulandari et al. So, they looked at the contribution of temporary layoffs to the unemployment rate during the recent recession compared to the situation in the four recessions before 1990. Nautwima, Johanna Pangeiko, Asa Asa Romeo. This study comes at an important time in Nigeria when the economy just exited a recession and is still experiencing low production and rising unemployment. How much of it corresponds to the natural rate of unemployment varies over time with changing circumstances. Samuelson, P. A., & Solow R. M. (1960). Friedman, N. (1968). Namibia Unemployment Rate 2023 & Employment Data | Take-profit.org Economic calendar Brokers Promotions EUR/USD GBP/USD USD/JPY Gold Oil SP500 XAUUSD: Elliott wave analysis and forecast for 26.08.2022 - 02.09.2022 WTI Crude Oil: Elliott wave analysis and forecast for 26.08.2022 - 02.09.2022 Download full-text PDF Read full-text. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. Dec/20. The unemployment rate in Namibia remains high. This invalidates the notion of the Phillips Curve to the Greek economy. The results correspond to the findings of Shifotoka (2015) that incorporated the periods of economic shocks, signifying that the critics of the Philips Curve with respect to the consideration of economic crises is nonsensical to the Namibian economy. Method: The study applies the ARDL approach to co-integration to check the relationship between selected variables. His results show an inverse relationship between inflation and unemployment. On the other hand, a 1% increase in direct income tax leads to a fall of 6.83% in national output. Using a time series data for the period 1970-2012, the study tests for the presence of unit root test, using the augmented Dickey-Fuller test for stationarity. Namibia unemployment rate for 2020 was 21.45%, a 1.46% increase from 2019. A Conditional Restricted Equilibrium Correction Model on Nigerian Stock Exchange All-Share Index and Macroeconomic Indicators with 2008 Global Financial Crisis Effects: A Univariate Framework Approach. %. Phillips curves, expectations of inflation and optimal employment over Economica, 34 (135), 254-281. Misini, S., & Badivuku-Pantina, M. (2017). The Relationship Between Inflation and Unemployment in Namibia Within Figure 5.4 Computing the Unemployment Rate. Godinic, D., Obrenovic, B. More, the linear regression equations were specified as follow: Finally, Granger causality analysis was expected to follow one of the four possible outcomes of the Granger causality test, constituting: The unit root test was performed to determine whether the data were stationary or non-stationary, using the Augmented Dickey Fuller test (ADF) and Phillips-Perron (P.P.)