The Impact Of Unemployment On Economic Growth In China

Economic growth has been the main indicator of measuring the robustness of every economy with unemployment as one of the important macro-economic indicators that reflects the incompetence of any economy to make full use of its labour resources.Hence,a macro-economic secondary and time series data were extracted from the World Development Indicator(WDI)for the period of 1991-2018 in China.In conducting the econometric analysis of the study,both the Augmented Dickey-Fuller Test and Phillips Perron Test were employed to test and confirm the stationary level of the variables of study;the Autoregressive Distributed Lagged(ARDL)co-integration and the ARDL Bounds test were employed to test for the short-run and the long-run co-integration of the variables of study since both variable were stationary at first difference I(1).The findings of the study reveal that,there are negative short-run and long-run relationship between unemployment and economic growth.However,Granger causality Test also reveals that both unemployment and economic growth do not impact each other.