| Abstract [eng] |
This master‘s thesis is analysing how labour productivity affects economic growth and unemployment rate interconnection, more exact – investigating if productivity changes the intensity of growth and unemployment relationship in ES-27 countries. Analysis is based on statistical data between year 2012 and 2022. The investigation deeply looks into the relationship between economic growth and unemployment rate in the context of Okun‘s law, it aims to ascertain if productivity could change the correlation between the two. First part of thesis analyses productivity factors with other economic processes applying linguistic comparative method. Reviewing the correlation between unemployment rate and economic growth through theory, presenting theoretical concept of unemployment, analysing factors of unemployment level. Moreover, analysing factors which impact country’s economic growth and what are the theoretical assertion theories of unemployment rate and economic growth. Second part of thesis presents evaluation model of unemployment factors and empirical research method. After researching how productivity affects economic growth in corelation with unemployment rate a empirical model has been created which evaluates how productivity changes interconnection between the economic growth and unemployment level. Third part of thesis investigates how productivity impacts economic growth in corelation with unemployment rate based on dynamic analysis and regression analysis data. Dynamic analysis revealed that economic growth and unemployment rate relationship is inverse. Meaning unemployment lowers when economic growth and productivity is high. Results of empirical analysis revealed that throughout the period of observing the correlation between economic growth and unemployment rate applying Okun’s law a negative relationship between economic growth and unemployment rate change was established, whereas productivity did not impact the relationship between economic growth and unemployment rate. |
