The Relationship between GDP Growth and Unemployment. Testing the Okun’s Law in Kazakhstan

Sultan Nagmetov

Bachelor's thesis

Abstract:

The main goal lies in testing if the Okun’s law is still a relevant economic phenomenon and if the general law developed by one of the most prominent economists of the 20th century is still relevant based on the example of a selected country – Kazakhstan. This objective has a specific sub-goal, which is strongly associated with the creation of an econometric model that will precisely identify the quantitative effect of the change in real GDP of Kazakhstan on the change in the unemployment rate of the same country. It was identified that the nature of the relationship is the same as the Okun’s law described it, but the magnitude is absolutely different – to achieve a 1 percentage point drop in the unemployment rate in Kazakhstan, it is essential to reach 11.76 increase in the real GDP, which suggests that the Okun’s law is not fully applicable to the cases of emerging economies

Keywords

Kazakhstan, Okun's law, GDP growth

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 16. 3. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 23. 5. 2024
• Vedúci: doc. Ing. Inna Čábelková, Ph.D.
• Oponent: Luboš Smutka, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration