The Dynamic Effect of Globalization on Unemployment Rate in Iran: A Co-integration Analysis

Ali A. Naji Meidani, Maryam Zabihi

Abstract


In this research, the dynamic effect of globalization on unemployment rate in Iran is investigated during the period 1971 to 2006 using Johansen-Juselius co-integration test. Thus, the trade intensity index (ratio of total exports and imports to GDP) as a measure of globalization have used. Also in this model, gross domestic product, the consumer price index as well as other variables affecting the unemployment rate have considered. Findings show that the globalization has a significant and negative effect on unemployment rate. The value of error correction coefficient is equal to -0.46 implying that around 95% of the unemployment rate adjustment occurs after two years.


Full Text: PDF DOI: 10.5539/ibr.v5n1p120

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.