Abstract: Science Set Journal of Economics Research

Abstract:
The purpose of this study is to investigate the effects of macroeconomic variables on the unemployment rate in North African countries. The analysis employed econometric techniques such as panel unit root tests, cointegration analysis, and model estimation. This model makes it possible to distinguish between the short-run effect and the long-run one. In this study, the short-term and long-term effects of economic growth on the unemployment rate were investigated using a combined autoregressive distributed lag (ARDL) panel approach. The results showthat there is a long-term relationship because the error correction parameter, or adjustment coeficient, is statistically significant and negative. In the short run, gross domestic product growth does negatively affect the unemployment rate; the effect is significant in the long run. On the other hand, the effect of laborforce growth is significant in the short run. However, it is not significant in the long run. Finally, the results suggest that the effect of foreign direct investment on the unemployment rate is significant, both in the long run and in the short run.