Author/Authors :
MAQBOOL, MUHAMMAD SHAHID Government Postgraduate College, Pakistan , MAQBOOL, MUHAMMAD SHAHID University of the Punjab, Pakistan , MAQBOOL, MUHAMMAD SHAHID Shaheed Zulfikar Ali Bhutto Institute of Science and Technology - Department of Management Sciences, Pakistan , MAHMOOD, TAHIR Government Postgraduate College, Pakistan , MAHMOOD, TAHIR Shaheed Zulfikar Ali Bhutto Institute of Science and Technology - Department of Management Sciences, Pakistan , MAHMOOD, TAHIR University of the Punjab, Pakistan , SATTAR, ABDUL University of the Punjab, Pakistan , SATTAR, ABDUL Government Postgraduate College, Pakistan , SATTAR, ABDUL Shaheed Zulfikar Ali Bhutto Institute of Science and Technology - Department of Management Sciences, Pakistan , BHALLI, M. N. Government Postgraduate College, Pakistan , BHALLI, M. N. University of the Punjab, Pakistan , BHALLI, M. N. Shaheed Zulfikar Ali Bhutto Institute of Science and Technology - Department of Management Sciences, Pakistan
Abstract :
This study analyzes the determinants of unemployment in Pakistan over a period of 1976-2012 by examining the empirical relationship among the unemployment, population, foreign direct investment, gross domestic product, inflation, and external debt. It is hypothesized that these factors exert a strong impact on unemployment rate in the economy of Pakistan. Autoregressive Distributed Lag (ARDL) approach has been applied to test determinants of unemployment. Empirical results reveal that gross domestic product, population, inflation, and foreign direct investment are significant determinants of unemployment in Pakistan in short-run as well as long-run. The CUSUM and CUSUMSQ are showing that the model is structurally stable within the 5% of critical bounds. The Phillips curve exists in Pakistan both in short- and long-run.
Keywords :
Unemployment , ARDL , Population , Gross domestic product , Foreign direct investment
