Analysis of the Relationship between Unemployment and GDP in Poland and Spain in the Years 2002–2015

Joanna Podgórska; Małgorzata Leśniowska-Gontarz

doi:10.56583/br.494

Published : 2016-11-22

Vol. 14 No. 3 (2016)

Analysis of the Relationship between Unemployment and GDP in Poland and Spain in the Years 2002–2015

Joanna Podgórska

Małgorzata Leśniowska-Gontarz

DOI: https://doi.org/10.56583/br.494

Abstract

The aim of this study is to analyze the correlation between the unemployment rate and the rate of growth in two European countries: Poland and Spain; the hypotheses put forward are verified with the use of data from a public database of the OECD for the years 2002–2015. The first hypothesis assumes the existence of a relationship between the unemployment rate and changes in GDP. The second indicates that for every 2–3 percentage point decrease (increase) of real GDP in relation to potential GDP, the unemployment rate increases (decreases) by 1 percentage point in the two countries surveyed. The calculations verify positively the first hypothesis and, at the same time, falsify the second hypothesis for both countries.

Keywords:

GDP rate of growth, unemployment rate, Okun’s law

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Podgórska, J., & Leśniowska-Gontarz, M. (2016). Analysis of the Relationship between Unemployment and GDP in Poland and Spain in the Years 2002–2015. Regional Barometer. Analyses & Prognoses, 14(3), 59–67. https://doi.org/10.56583/br.494

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Joanna Podgórska

br@akademiazamojska.edu.pl

Affiliation:

University of Information Technology and Management in Rzeszow Poland

Małgorzata Leśniowska-Gontarz

br@akademiazamojska.edu.pl

Affiliation:

University of Information Technology and Management in Rzeszow Poland