Investigation of Economic Growth and Unemployment Relationship for G7 Countries Using Panel Regression Analysis
Hasan Alp ÖZEL, Funda H. SEZGİN, Özgür TOPKAYA

Abstract
Although there is a significant literature on the relationship between economic growth and unemployment, effect of economic growth over unemployment varies among the periods and countries. The study investigates the economic growth, productivity and unemployment data for seven industrialized countries (G7) between the years of 2000 to 2011. In addition to the mentioned period two sub-periods of 2000-2007 and 2008-2011 in which the effect of global financial crisis was felt most have been analyzed. Pre and post crisis periods have been compared to each other. The results of the study reveal that while the productivity and economic growth variables have significant and strong effects on the reduction of unemployment in the pre-crisis period, this effect of productivity becomes insignificant and small after the crisis whereas the effect of economic growth as a decreasing effect over unemployment continues and its impact level rises.

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