Unemployment, Inflation and Impact of GDP in India

DOI

10.2991/aebmr.k.210319.118How to use a DOI?

Keywords

Bi-variate regression model, Real GDP, Lack of employment, Short-run Philips curve, Inflation

Abstract

Inflation and lack of employment are primary challenges that affect every economy in all developing countries. This article’s research topic evaluates the rate of lack of employment and inflation in the Indian economy in six years to determine a trade-off between inflation and lack of employment. A reversed association between the inflation rate and the rate of lack of employment exists; an increment in inflation drives a reduction in lack of employment and vice versa. The research uses the Bi-variants analysis method, where the rate of lack of employment is the variable in the first theory and the inflation rate in the second. The main instrument used in this study is the Phillips curve. The curve examines the connection between the lack of employment and the rate in which the wage changes. The data is gathered in the U.K from 2001 to 2015s [3]. The study’s results proved that lack of employment influenced inflation. The lack of employment is a frequently occurring circumstance in the economies of all developing countries. It positively affects the GDP, living standards among people, and the price levels. The results showed a significant association between inflation and lack of employment, but the relationship is insignificant in India’s economy. The main implication of these findings is that policymakers should focus on efforts towards reorganizing the economy, the level of employment, and managing the instability in prices.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xinhe Xia
PY  - 2021
DA  - 2021/03/22
TI  - Unemployment, Inflation and Impact of GDP in India
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 641
EP  - 647
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.118
DO  - 10.2991/aebmr.k.210319.118
ID  - Xia2021
ER  -