May 2024

Okun's law using structural change with threshold approach: Empirical evidence from the Democratic Republic of Congo (DRC)

This paper employs the structural change with threshold approach to empirically verify Okun's law in the DRC. Utilizing quarterly data, the findings robustly support the existence of Okun's law in the DRC, albeit with a coefficient lower than that originally proposed by Okun. Moreover, the results reveal that the Okun coefficient in the DRC fluctuates significantly over time, irrespective of the economy's...

Author(s): Morisho Mwanabingo Nene, and Minane Mpore Matthieu