Testing for asymmetric effect of industrial production index on unemployment rates- study case the Arab countries

Abstract

This paper aims to study the relationship between the industrial production index and the unemployment rates in the Arab countries. The study concluded that there is a nonlinear relationship between the two variables. The researcher proposes one method of estimation based on the hypothesis of asymmetry. The researcher suggested the application of an estimation method represented in the non-linear regression of distributed distributions. As for the results in concrete reality, the researcher reached the industrial production index of the Arab countries with different effect on the unemployment rates. This variation in effect is due to the negative and positive effect