Dependency between Economic Growth and Unemployment in Bulgaria

Abstract

The study highlights a research of theoretical and empirical significance into the dependency between economic growth and unemployment in Bulgaria, in the period between the years 1990-2005. The analysis interprets the empirical law of А. Оукън, modified and adapted to the present day peculiarities and indicators of growth under the specific conditions of Bulgaria. The degree of the dependency is calculated on the basis of the modified equation of the above law. The average annual and quarterly quantitative parameters of the dependency calculated on the basis of a constant and a spin-off are represented as tables and graphic charts and analyzed with a focus on the dynamics and specific features of unemployment. It has been concluded that in the period between the years 1990 -2005 the Оукън principle was manifested in Bulgaria under certain specific conditions of an unstable economy, while in the near future the dependency is expected to be established on a relatively stable level.