The Relationship between Unemployment and Inflation in Sudan: An Empirical Analysis, 1992-2015

Abstract

This study investigated from an empirical point of view, the relationship between unemployment and inflation in Sudan during the period 1992-2015. Annual time series data has been used in the analysis to estimate the model for the period under consideration. Data for the study were obtained from central bank of Sudan and central bureau of statistics. Using these data, Granger test is applied to estimate the causal relationship between unemployment and inflation. The results provided that unemployment does not Granger cause Inflation, and inflation dose not Granger cause unemployment. Thus, there is no causality relationship between inflation rates and unemployment rates in Sudan from 1992-2015.