Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product
Bearing in mind that GDP is the main indicator of a country’s standard of living, this paper attempts to study the correlations that exist between inflation rate and employment with GDP. The variables were selected based on relevant economic theories that allow such interactions among variables. The...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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IDOSI Publications
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28505/ http://psasir.upm.edu.my/id/eprint/28505/1/Multivariate%20time%20series%20analysis%20on%20correlation%20between%20inflation%20rate%20and%20employment%20rate%20with%20gross%20domestic%20product.pdf |
| _version_ | 1848846135221813248 |
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| author | Abu Hassan Asari, Fadli Fizari Mohamad, Zuraida Alias, Teh Sofia Shamsudin, Norazidah Baharuddin, Nurul Syuhada Jusoff, Kamaruzaman |
| author_facet | Abu Hassan Asari, Fadli Fizari Mohamad, Zuraida Alias, Teh Sofia Shamsudin, Norazidah Baharuddin, Nurul Syuhada Jusoff, Kamaruzaman |
| author_sort | Abu Hassan Asari, Fadli Fizari |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Bearing in mind that GDP is the main indicator of a country’s standard of living, this paper attempts to study the correlations that exist between inflation rate and employment with GDP. The variables were selected based on relevant economic theories that allow such interactions among variables. The study has been done using multivariate times series analysis available in STATA software. In the long run, the results indicate that the inflation rate does not affect the GDP while the employment rate has negative relationship with the GDP. Granger Causality is applied to test the causality between the variables. The findings revealed that both independent variables have unidirectional relationship with GDP in the short run. It is to be concluded that by using time series data, the researcher can discern the movement of variables clearly. It is recommended that future researchers should improve the reliability and validity of the results by replacing the other independent variables such as level of income, population and others. |
| first_indexed | 2025-11-15T08:57:54Z |
| format | Article |
| id | upm-28505 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:57:54Z |
| publishDate | 2011 |
| publisher | IDOSI Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-285052020-06-15T07:45:58Z http://psasir.upm.edu.my/id/eprint/28505/ Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product Abu Hassan Asari, Fadli Fizari Mohamad, Zuraida Alias, Teh Sofia Shamsudin, Norazidah Baharuddin, Nurul Syuhada Jusoff, Kamaruzaman Bearing in mind that GDP is the main indicator of a country’s standard of living, this paper attempts to study the correlations that exist between inflation rate and employment with GDP. The variables were selected based on relevant economic theories that allow such interactions among variables. The study has been done using multivariate times series analysis available in STATA software. In the long run, the results indicate that the inflation rate does not affect the GDP while the employment rate has negative relationship with the GDP. Granger Causality is applied to test the causality between the variables. The findings revealed that both independent variables have unidirectional relationship with GDP in the short run. It is to be concluded that by using time series data, the researcher can discern the movement of variables clearly. It is recommended that future researchers should improve the reliability and validity of the results by replacing the other independent variables such as level of income, population and others. IDOSI Publications 2011 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/28505/1/Multivariate%20time%20series%20analysis%20on%20correlation%20between%20inflation%20rate%20and%20employment%20rate%20with%20gross%20domestic%20product.pdf Abu Hassan Asari, Fadli Fizari and Mohamad, Zuraida and Alias, Teh Sofia and Shamsudin, Norazidah and Baharuddin, Nurul Syuhada and Jusoff, Kamaruzaman (2011) Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product. World Applied Sciences Journal, 12. pp. 61-66. ISSN 1818-4952; ESSN: 1991-6426 https://www.idosi.org/wasj/wasj12(BES)2011.htm |
| spellingShingle | Abu Hassan Asari, Fadli Fizari Mohamad, Zuraida Alias, Teh Sofia Shamsudin, Norazidah Baharuddin, Nurul Syuhada Jusoff, Kamaruzaman Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title | Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title_full | Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title_fullStr | Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title_full_unstemmed | Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title_short | Multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| title_sort | multivariate time series analysis on correlation between inflation rate and employment rate with gross domestic product |
| url | http://psasir.upm.edu.my/id/eprint/28505/ http://psasir.upm.edu.my/id/eprint/28505/ http://psasir.upm.edu.my/id/eprint/28505/1/Multivariate%20time%20series%20analysis%20on%20correlation%20between%20inflation%20rate%20and%20employment%20rate%20with%20gross%20domestic%20product.pdf |