The Relationship between Exchange Rates and Other Effective Factors on Unemployment in Selected Countries of the Islamic Conference’s Members
Today, unemployment is a great problem of many developing societies. This article examines factors related to unemployment and the impact on the real exchange rate in the eight-nation Islamic Conference, mainly in developing countries or less developed, deals. Beginning with the introduction of an analytical model includes a two-sector open economy, unemployment and analysis component channeleffect. Then we use model obtained to investigate relation between macroeconomic variables and unemployment with panel data method. Results confirm this model from statistically significant coefficients and indicate that unemployment with variable gross domestic product (GDP), real exchange rate and the share of industrial exports has indirect relationship and with the variable volume workforce have direct relationship.
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