DOĞU ASYA VE PASİFİK ÜLKELERİNDE İŞSİZLİK HİSTERİSİ: PANEL VERİ YAKLAŞIMI

Abstract

Unemployment is one of the main problems of all countries. Thus, the interests and efforts of economists to explain the unemployment is becomes important. In this context, one of the hypothesis put forthed about unemployment is the hysteresis hypothesis. According to the unemployment hysteresis hypothesis, unemployment rate follows a nonreverting path to its equilibrium in the long-run. The aim of this paper is to investigate the validity of hysteresis hypothesis in unemployment rates in the developed East Asian and Pacific countries during the period 1985–2011. To this end we employed the panel unit root test introduced by Carrion-i-Silvestre and Carrion-i-Silvestre et. al. in 2005. The findings show that, the hysteresis does not characterise the unemployment in most of the countries contrary to the first generation panel unit root tests. Thus, it can be said that, the cyclical fluctuations don’t have permanent effect on the unemployment level in these countries