The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis

Godwin Essang Esu; Johnson Akpan Atan

doi:doi:10.11648/j.jwer.20170605.11

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The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis

Godwin Essang Esu, Johnson Akpan Atan

Published in Journal of World Economic Research (Volume 6, Issue 5)

Received: 25 November 2017 Accepted: 5 December 2017 Published: 25 December 2017

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Abstract

In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.

Published in	Journal of World Economic Research (Volume 6, Issue 5)
DOI	10.11648/j.jwer.20170605.11
Page(s)	59-66
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Philip’s Curve, Inflation, Unemployment, Economic Policy, Trade-off

References

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APA Style

Godwin Essang Esu, Johnson Akpan Atan. (2017). The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. Journal of World Economic Research, 6(5), 59-66. https://doi.org/10.11648/j.jwer.20170605.11

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ACS Style

Godwin Essang Esu; Johnson Akpan Atan. The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. J. World Econ. Res. 2017, 6(5), 59-66. doi: 10.11648/j.jwer.20170605.11

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AMA Style

Godwin Essang Esu, Johnson Akpan Atan. The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. J World Econ Res. 2017;6(5):59-66. doi: 10.11648/j.jwer.20170605.11

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@article{10.11648/j.jwer.20170605.11,
  author = {Godwin Essang Esu and Johnson Akpan Atan},
  title = {The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis},
  journal = {Journal of World Economic Research},
  volume = {6},
  number = {5},
  pages = {59-66},
  doi = {10.11648/j.jwer.20170605.11},
  url = {https://doi.org/10.11648/j.jwer.20170605.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20170605.11},
  abstract = {In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.},
 year = {2017}
}

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TY  - JOUR
T1  - The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis
AU  - Godwin Essang Esu
AU  - Johnson Akpan Atan
Y1  - 2017/12/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jwer.20170605.11
DO  - 10.11648/j.jwer.20170605.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 59
EP  - 66
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20170605.11
AB  - In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.
VL  - 6
IS  - 5
ER  -

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Author Information

Godwin Essang Esu

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria
Johnson Akpan Atan

Department of Economics, Faculty of Social Sciences, University of Uyo, Uyo, Nigeria

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APA Style

Godwin Essang Esu, Johnson Akpan Atan. (2017). The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. Journal of World Economic Research, 6(5), 59-66. https://doi.org/10.11648/j.jwer.20170605.11

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ACS Style

Godwin Essang Esu; Johnson Akpan Atan. The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. J. World Econ. Res. 2017, 6(5), 59-66. doi: 10.11648/j.jwer.20170605.11

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AMA Style

Godwin Essang Esu, Johnson Akpan Atan. The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis. J World Econ Res. 2017;6(5):59-66. doi: 10.11648/j.jwer.20170605.11

Copy | Download

@article{10.11648/j.jwer.20170605.11,
  author = {Godwin Essang Esu and Johnson Akpan Atan},
  title = {The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis},
  journal = {Journal of World Economic Research},
  volume = {6},
  number = {5},
  pages = {59-66},
  doi = {10.11648/j.jwer.20170605.11},
  url = {https://doi.org/10.11648/j.jwer.20170605.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20170605.11},
  abstract = {In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Philip’s Curve in Sub-Saharan Africa: Evidence from Panel Data Analysis
AU  - Godwin Essang Esu
AU  - Johnson Akpan Atan
Y1  - 2017/12/25
PY  - 2017
N1  - https://doi.org/10.11648/j.jwer.20170605.11
DO  - 10.11648/j.jwer.20170605.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 59
EP  - 66
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20170605.11
AB  - In this study, we attempted the assessment of the validity of the Philip’s curve hypothesis in the Sub-Saharan African region. We employed a panel data technique of analysis, drawing data from twenty-nine countries in the region. The data spanned 24 years (1991 to 2015). The inflation rate was captured using the consumer price index (CPI – its log first difference), while unemployment rate was measured by total unemployment (as a percentage of total labour force, a national estimate). Using a panel data analysis technique, our result showed that there was no significant relationship between inflation rate and the rate of unemployment (based on Two-Way FE), but One-Way FE and RE showed a rather significant trade-off. Though the conflicting results suggest an inconclusive outcome, the Two-Way FE (that was the technique in focus in this study), seems to invalidate the existence of the common Philip’s Curve (that is, unemployment-inflation trade-off) in the Sub-Saharan African region.
VL  - 6
IS  - 5
ER  -

Copy | Download