Econometric Analysis of Interdependence between Economic Growth and Unemployment in China (1978-2006)

Abstract

Econometric analysis of interdependence between economic growth and unemployment in China 1978-2006 is described. It is shown that Okun's law is not valid for China's transition period. Unemployment increments have no statistically significant influence on GDP growth rate. But the rate of GDP growth does influence increments in unemployment with one year lag. Regression equation of this influence is presented.