The Impact of Fiscal Policy on the Unemployment Rate in Egypt

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63525666" target="_blank" >RIV/70883521:28120/20:63525666 - isvavai.cz</a>

Výsledek na webu

<a href="http://mnje.com/sites/mnje.com/files/199-209_-_omran_and_bilan_-_novi.pdf" target="_blank" >http://mnje.com/sites/mnje.com/files/199-209_-_omran_and_bilan_-_novi.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/1800-5845/2020.16-4.16" target="_blank" >10.14254/1800-5845/2020.16-4.16</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The Impact of Fiscal Policy on the Unemployment Rate in Egypt

Popis výsledku v původním jazyce

Unemployment is one of the main challenges that the Egyptian economy faces. The purpose of this paper is to examine how the unemployment rate responds to fiscal policy shocks. The study used annual time series data for the period from 1976 to 2018 collected from the world bank and the inter-national monetary fund. Based on Blanchard and Perotti approach, the study used a five-variables structural vector autoregressive (SVAR) model with the impulse response function (IRF) tool. The main findings of this paper are that 1) At the earlier stages, a one standard deviation shock to the government spending decreases the unemployment rate until the peri-od two, then it started to increase until reached to zero in period ten which means a positive shock to government spending has a negative impact unemployment rate. 2) At the earlier stages, a one standard deviation shock to the tax revenue temporarily decreases the unemployment rate, then it increases after the period two until it hits the zero level in the period six after that it became positive which means that in the long run, a positive shock to tax revenue has a positive impact on the unemployment rate. The study recommends the Egyptian government to run an expansionary budget to decrease the unemployment rate.

Název v anglickém jazyce

The Impact of Fiscal Policy on the Unemployment Rate in Egypt

Popis výsledku anglicky

Unemployment is one of the main challenges that the Egyptian economy faces. The purpose of this paper is to examine how the unemployment rate responds to fiscal policy shocks. The study used annual time series data for the period from 1976 to 2018 collected from the world bank and the inter-national monetary fund. Based on Blanchard and Perotti approach, the study used a five-variables structural vector autoregressive (SVAR) model with the impulse response function (IRF) tool. The main findings of this paper are that 1) At the earlier stages, a one standard deviation shock to the government spending decreases the unemployment rate until the peri-od two, then it started to increase until reached to zero in period ten which means a positive shock to government spending has a negative impact unemployment rate. 2) At the earlier stages, a one standard deviation shock to the tax revenue temporarily decreases the unemployment rate, then it increases after the period two until it hits the zero level in the period six after that it became positive which means that in the long run, a positive shock to tax revenue has a positive impact on the unemployment rate. The study recommends the Egyptian government to run an expansionary budget to decrease the unemployment rate.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

—

Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Montenegrin Journal of Economics

ISSN

1800-5845

e-ISSN

—

Svazek periodika

16

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

ME - Černá Hora

Počet stran výsledku

11

Strana od-do

199-209

Kód UT WoS článku

000590139700016

EID výsledku v databázi Scopus

2-s2.0-85095827823