<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study aims to explore the validity of Phillips curve for eight (8) countries from the Middle East and North Africa (MENA), namely Algeria, Egypt, Jordan, Kuwait, Malta, Morocco, Saudi Arabia, and Tunisia over the period of 1991–2019. The panel autoregressive distributed lag/pooled mean group (ARDL/PMG) estimation is employed in the study because of the nature of data. The results of ARDL/PMG reveal that there is no trade-off between inflation and unemployment rates in the panel of eight MENA countries in the long run, while there is a negative but insignificant relationship between these two variables in the short run. In addition, the trade-off between inflation and unemployment for each of the panel’s countries has also been investigated. The empirical results indicate that there is no trade-off in the short run as the estimated coefficients found are statistically insignificant. Hence, it is concluded that there is no empirical evidence of the trade-off between inflation and unemployment rates in MENA countries.</p>
</abstract>

This study aims to explore the validity of Phillips curve for eight (8) countries from the Middle East and North Africa (MENA), namely Algeria, Egypt, Jordan, Kuwait, Malta, Morocco, Saudi Arabia, and Tunisia over the period of 1991–2019. The panel autoregressive distributed lag/pooled mean group (ARDL/PMG) estimation is employed in the study because of the nature of data. The results of ARDL/PMG reveal that there is no trade-off between inflation and unemployment rates in the panel of eight MENA countries in the long run, while there is a negative but insignificant relationship between these two variables in the short run. In addition, the trade-off between inflation and unemployment for each of the panel’s countries has also been investigated. The empirical results indicate that there is no trade-off in the short run as the estimated coefficients found are statistically insignificant. Hence, it is concluded that there is no empirical evidence of the trade-off between inflation and unemployment rates in MENA countries.

Does the Phillips Curve Exist? Evidence from the Middle East and North African Countries

Department of Economics, Faculty of Business and Economics

Department of Economics, Faculty of Business & Economics

Journal of Central Banking Theory and Practice

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

This study aims to explore the validity of Phillips curve for eight (8) countries from the Middle East and North Africa (MENA), namely Algeria, Egypt, Jordan,...

Does the Phillips Curve Exist? Evidence from the Middle East and North African Countries

Published Online: Sep 23, 2022

Page range: 59 - 78

Received: Apr 03, 2021

Accepted: Aug 26, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0023

Keywords
Inflation rates, unemployment rates, Phillips curve, ARDL/PMG, MENA-8

© 2022 Muhammad Azam et al., published by Sciendo

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

Does the Phillips Curve Exist? Evidence from the Middle East and North African Countries

Published Online: Sep 23, 2022

Page range: 59 - 78

Received: Apr 03, 2021

Accepted: Aug 26, 2021

DOI: https://doi.org/10.2478/jcbtp-2022-0023

KeywordsInflation rates, unemployment rates, Phillips curve, ARDL/PMG, MENA-8

© 2022 Muhammad Azam et al., published by Sciendo

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

Keywords
Inflation rates, unemployment rates, Phillips curve, ARDL/PMG, MENA-8