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A Link of Unemployment Rate between Taiwan and the United States

Author

Listed:
  • Cho, Tsai-Lun

    (Department of Mobile Technology, Toko University, Taiwan / Department of Information Management, Chung Yuan Christian University, Taiwan)

  • Lee, Cheng-Wen

    (Department of International Business, Chung Yuan Christian University, Taiwan)

Abstract

Unemployment problem is a pressing issue in many countries, but literature on the aggregate relationship between exchange and unemployment rates in Taiwan (TW) is lacking. We investigated the unemployment problem in relation to another country through the bilateral exchange rate and explored the link of unemployment rate between TW and the United States (US). Results corroborate that a 1% increase in the US unemployment rate results in an average of an 0.34%–0.38% increase in the TW unemployment rate. La relazione tra il tasso di disoccupazione di Taiwan e degli Stati Uniti Il problema della disoccupazione è importante per molti paesi. Ciononostante la letteratura sulla relazione aggregata tra cambio e tasso di disoccupazione a Taiwan è carente. In questo studio abbiamo analizzato questo problema tramite il tasso di cambio bilaterale ed abbiamo preso in considerazione la relazione tra il tasso di disoccupazione a Taiwan e negli USA. I risultati confermano che un incremento dell’1% della disoccupazione negli USA si associa in media ad un incremento dello 0.34-0.38% del tasso di disoccupazione a Taiwan.

Suggested Citation

  • Cho, Tsai-Lun & Lee, Cheng-Wen, 2019. "A Link of Unemployment Rate between Taiwan and the United States," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(3), pages 313-320.
    • Handle: RePEc:ris:ecoint:0850
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    References listed on IDEAS

    as
    1. Ran, Jimmy & Zhou, Youqing, 2012. "Transmitted unemployment under the linked exchange rate system: Evidence from Hong Kong," Economics Letters, Elsevier, vol. 117(1), pages 131-133.
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      More about this item

      Keywords

      Exchange Rate; Transmission Effect; Unemployment Rate;
      All these keywords.

      JEL classification:

      • F31 - International Economics - - International Finance - - - Foreign Exchange
      • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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