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Estimating the Nature of Relationship of Entrepreneurship and Business Confidence on Youth Unemployment in the Philippines KCI 등재 SCOPUS
This study estimates the nature of the relationship of entrepreneurship and business confidence on youth unemployment in the Philippines over the 2001-2017 period. The paper employed a range of cointegrating regression models, namely, autoregressive distributed lag (ARDL) bounds testing approach, Johansen-Juselius (JJ) and Engle-Granger (EG) cointegration models, dynamic OLS, fully modified OLS, and canonical cointegrating regression (CCR) estimation techniques. The Granger causality based on error correction model (ECM) was also performed to determine the causal link of entrepreneurship and business confidence on youth unemployment. The ARDL bounds testing approach, Johansen-Juselius (JJ) and Engle-Granger (EG) cointegration models confirmed the existence of long-run equilibrium relationship of entrepreneurship and business confidence on youth unemployment. The long-run coefficients from JJ and dynamic OLS show significant long-run and positive relationship of entrepreneurship and business confidence on youth unemployment. While results of the long-run coefficients from fully modified OLS and canonical cointegrating regression (CCR) found that only entrepreneurship has significant and positive relationship with youth unemployment in the long-run. The Granger causality based on error correction model (ECM) estimates show evidence of long-run causal relationship of entrepreneurship and business confidence on youth unemployment. In the short-run, increases in entrepreneurship and business confidence causes youth unemployment to decrease.
1. Introduction
2. Theoretical Foundation
2.1. Schumpeter Effect: Entrepreneurship-Unemployment Link
2.2. Animal Spirit: Business Confidence-Unemployment Link
3. Literature Review
3.1. Tendency Towards Entrepreneurship
3.2. Basic Skills and Job-skills Mismatch
3.3. Concerns of Policy-Making
4. Research Methodology
4.1. Unit Root Tests
4.2. Cointegration Models
5. Results and Discussion
5.1. Unit Root Test Results
5.2. Cointegration Models Test Results
6. Conclusions
References
