The impact of Unemployment on the Economic Growth of Pakistan & India

Abstract

Unemployment is a big issue at the present time. The high rate of unemployment can lead to instability such as crime and poverty. The main aim and objective of this project is to scrutinize the impact of unemployment on economic growth in India and Pakistan over the time period from (1991-2021). This study used the panel least square unit root tests, PP ADF individually and ARDL bound test (Auto-regressive distributed lag) and Pedroni co-integration test for computing and checking the existence of long term relationship. The empirical results find that there is long term relationship between unemployment is dependent variable(DV) and other independent variables such as trade, inflation, agriculture, final consumption(FCM) and GDP. The results almost shown up there is positive relationship between variables but our results shown that if the unemployment is increase the GDP is decreased in Pakistan and India.