Testing Okun's law on the relationship between employment rate and economic growth in developed and developing countriesa

Regression models for panel data are increasingly widely used in socio-economic studies because they consider the relationship between many objects over time; thus can better measure unobservable effects. This study aims to test Okun's law on economic growth rate and unemployment two groups of countries (developed developing). The was conducted period 2008–2019 using a number static dynamic regression models. model results show that (differential general moment model, DGMM) is more suitable testing validity these countries. These both quite consistent with law, which developing have higher degree concordance. Moreover, group has larger Okun coefficient, so this affected by rate. From obtained results, we try explain causes leading difference influence level , suggest some solutions need special attention achieve goal growth.