Informality, Unemployment, and Economic Growth in Venezuela: 1969-2017. Cointegration Analysis Multivariate Case

Main Article Content

Mayra Montilla
https://orcid.org/0000-0001-8325-1523

Abstract

The objective of this paper is to determine the incidence of unemployment and economic growth on informality in Venezuela, during the period 1969-2017, by means of a linear regression equation with non-stationary time series. For the estimation, we use Johansen's (1988) econometric cointegration procedure in a multivariate context and the error correction model. This paper finds that the three variables are cointegrated and are adjusted in the long run. The sign of the informalityu nemployment relationship is positive, which may indicate that occupation in the informal sector is shown to protect against unemployment. The sign of the relationship between informality and gross domestic product is positive, which may indicate procyclical behavior in the long term

Article Details

How to Cite

Montilla, M. (2023). Informality, Unemployment, and Economic Growth in Venezuela: 1969-2017. Cointegration Analysis Multivariate Case. Semestre Económico, 25(58), 1-28. https://doi.org/10.22395/seec.v25n58a8

References

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Author Biography

Mayra Montilla, Central Bank of Venezuela

Licenciada en Matemática, Universidad Central de Venezuela, Caracas, Venezuela. Magíster en Matemática, Universidad Central de Venezuela, Caracas, Venezuela. Doctora en Ciencias, Mención Matemática, Universidad Central de Venezuela, Caracas, Venezuela. Analista de Proyectos, Banco Central de Venezuela, Caracas, Venezuela. Dirección: Av. Urdaneta, Caracas 1010, Distrito Capital. Teléfono: +58 536-9215. Correo electrónico: mmontil1@bcv.org.ve. Orcid: https://orcid.org/0000-0001-8325-1523.