Macroeconomic Determinants of Unemployment in Somalia: The Case of Okun’s Law and the Phillips Curve

This study aims to assess the impact of economic growth and inflation on unemployment in Somalia by testing Phillips curve Okun’s law hypothesis utilizing autoregressive distributed lag (ARDL) model time series data covering period from 1991 2017. The empirical results reveal existence long-run cointegration among variables. Moreover, a negative relationship is established between both short run long run, hence confirming validity Somalia. inconsequential although strong association exists thus supporting presence run. recommends that policymakers should enact policies favor mitigate create balance required level