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Corresponding Author:
Tsai-Lun Cho, Department of Mobile Technology, Toko University, Taiwan / Department of Information Management, Chung Yuan Christian University, Taiwan

Coauthors:
Cheng-Wen Lee, Department of International Business, Chung Yuan Christian University, Taiwan

A Link of Unemployment Rate between Taiwan and the United States

Volume 72 - Issue 3, August 2019
(pp. 313-320)
JEL classification: F31, J60
Keywords: Exchange Rate, Transmission Effect, Unemployment Rate

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.

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