TESTING THE VALIDITY OF PHILLIPS CURVE FOR SELECTED ASIAN COUNTRIES

Authors

  • Gulzar Ali Department of Economics, Islamia College University Peshawar, KPK, Pakistan
  • Huma Ayaz Department of Economics, Islamia College University Peshawar, KPK, Pakistan
  • Said Zamin Shah  Department of Economics, Islamia College University Peshawar, KPK, Pakistan

DOI:

https://doi.org/10.52567/pjsr.v4i03.737

Abstract

Inflation is the major fear among the people living in the society as it increases the cost of living. Unemployment further adds in this fear as increased unemployment lowers the purchasing power and welfare of the people living in the society. This research study aims to examine the relationship between these two important socio-economic factors (inflation and unemployment) via testing the validity of Phillips Curve for selected Asian countries (Pakistan, Singapore, Sri Lanka, Indonesia, Thailand, Malaysia, Philippines, China, Japan, South Korea and India) using panel data from 1991-2020. The empirical findings show that in short run, the validity of Phillips Curve doesn’t exist in case of the selected Asian countries, however, in the long-run it does. Further, the study found significant relationship between GDP growth and inflation in the studied Asian countries. Moreover, the result of Granger Causality analysis found bi-directional association of inflation and unemployment in selected Asian Countries.

Keywords: Inflation, Unemployment, Phillips Curve, Asian, Panel data.

Author Biographies

  • Gulzar Ali, Department of Economics, Islamia College University Peshawar, KPK, Pakistan

    Assistant Professor

  • Huma Ayaz, Department of Economics, Islamia College University Peshawar, KPK, Pakistan

    MPhil Scholar

  • Said Zamin Shah , Department of Economics, Islamia College University Peshawar, KPK, Pakistan

    Assistant Professor

Additional Files

Published

2022-09-30

Issue

Vol. 4 No. 03 (2022): Pakistan Journal of Social Research PJSR

Section

Research Article

License

Copyright (c) 2022 Gulzar Ali, Huma Ayaz, Said Zamin Shah 

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

[1]
“TESTING THE VALIDITY OF PHILLIPS CURVE FOR SELECTED ASIAN COUNTRIES”, Pak. J, Soc. Sci., vol. 4, no. 03, pp. 471–480, Sep. 2022, doi: 10.52567/pjsr.v4i03.737.