A research of unemployment rate impact on gross domestic product in Baltic countries

Abstract

Unemployment rate and gross domestic product (GDP) are one of the most important macroeconomics indicators, which show countries’ level of development and cost of living, therefore they have a lot of attention in the economy and politics. The scientific literature indicates that these indicators are related and among them there is a negative correlation. This article analyses unemployment impact on GDP at constant prices in the Baltic countries year 2000–2015. For the research used correlation regression analysis, which results demonstrate a negative correlation between unemployment rate and GDP at constant prices. The relation is significant in Lithuania and Estonia, but in Latvia is weak and negligible.