جديد الاقتصاد
Volume 19, Numéro 1, Pages 207-228
2024-12-31

The Impact Of Inflation And Unemployment On Economic Growth In France 2000-2023

Authors : Soltani Ahlem Fadila . Taleb Mohamed Elamine Oualid .

Abstract

This study aims to examine the impact of both inflation and unemployment on economic growth in France from 2000 to 2023 using the ARDL model. This is done after confirming the stationarity of the time series, which was found to be stationary at the first difference. The study found a cointegration relationship among the variables. It also determined that inflation positively affects economic growth, whereas unemployment negatively affects economic growth, although the effect is not significant. Additionally, the adjustment process from the short term to the long term takes approximately two years, ten months, and twenty-one days. Around 80 % of the variations in economic growth can be explained by the independent variables. The model's validity was confirmed through diagnostic tests.

Keywords

Inflation ; Unemployment ; Economic growth ; France ; ARDL model