Volume 6, Issue 5, October 2017, Page: 59-66
The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis
Godwin Essang Esu, Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria
Johnson Akpan Atan, Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria
Received: Nov. 25, 2017;       Accepted: Dec. 5, 2017;       Published: Dec. 25, 2017
DOI: 10.11648/j.jwer.20170605.11      View  1388      Downloads  85
Abstract
In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.
Keywords
Philip’s Curve, Inflation, Unemployment, Economic Policy, Trade-off
To cite this article
Godwin Essang Esu, Johnson Akpan Atan, The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis, Journal of World Economic Research. Vol. 6, No. 5, 2017, pp. 59-66. doi: 10.11648/j.jwer.20170605.11
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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