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

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 unemp...

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Main Authors: Subramaniam, Thirunaukarasu, Baharumshah, Ahmad Zubaidi
Format: Article
Language:English
Published: World Scientific Publishing 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22843/1/Unemployment%20and%20speed%20of%20adjustment%20in%20ASEAN.pdf
http://psasir.upm.edu.my/id/eprint/22843/
http://www.worldscientific.com/doi/abs/10.1142/S0217590811004353
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spelling my.upm.eprints.228432016-02-18T02:54:49Z http://psasir.upm.edu.my/id/eprint/22843/ Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis Subramaniam, Thirunaukarasu Baharumshah, Ahmad Zubaidi 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. World Scientific Publishing 2011-08 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22843/1/Unemployment%20and%20speed%20of%20adjustment%20in%20ASEAN.pdf 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 http://www.worldscientific.com/doi/abs/10.1142/S0217590811004353 10.1142/S0217590811004353
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description 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.
format Article
author Subramaniam, Thirunaukarasu
Baharumshah, Ahmad Zubaidi
spellingShingle Subramaniam, Thirunaukarasu
Baharumshah, Ahmad Zubaidi
Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
author_facet Subramaniam, Thirunaukarasu
Baharumshah, Ahmad Zubaidi
author_sort Subramaniam, Thirunaukarasu
title Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
title_short Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
title_full Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
title_fullStr Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
title_full_unstemmed Unemployment and speed of adjustment in ASEAN-3 economies: a cointegration analysis
title_sort unemployment and speed of adjustment in asean-3 economies: a cointegration analysis
publisher World Scientific Publishing
publishDate 2011
url http://psasir.upm.edu.my/id/eprint/22843/1/Unemployment%20and%20speed%20of%20adjustment%20in%20ASEAN.pdf
http://psasir.upm.edu.my/id/eprint/22843/
http://www.worldscientific.com/doi/abs/10.1142/S0217590811004353
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score 13.209306