The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”

Tadesse Wudu Abate

doi:doi:10.11648/j.eco.20200904.11

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The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”

Tadesse Wudu Abate

Published in Economics (Volume 9, Issue 4)

Received: 9 October 2020 Accepted: 26 October 2020 Published: 23 November 2020

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Abstract

The massive spread of corona creates pressure on the general systems of the world countries. As stated in some studies corona virus affect every institution and individuals of the world in many aspects. Specifically it results in high unemployment, low level of production and significance rise in the nominal price of commodities. This study tries to explain the change in those economic variables to analyze the effect of Covid-19 on the living standard of households in Woldia town, Amhara regional state of Ethiopia using a data obtained from the north wollo zone planning commission which had been collected from sampled individuals monthly. Since the issue is so recent and absence of many conducted researches on this area, this article have no specific chapter for review of literature and gives more focus for data analysis part. Then descriptive analysis indicates the presence of valuable rise in unemployment and average price levels simultaneously and the OLS regression result disproved the applicability of Philips curve for the study area under the influence of COVID-19. While it emerged from animal hosts, currently COVID-19 continues to spread across the globe through human-to-human contact. It resulted in many socio economy impacts on the world society and deteriorates their day to day activities. Unemployment is the major manifestation of COVID-19 due quarantine requirement designed to control the spread of the virus and this indirectly creates high level of increments in the average price of consumer necessity goods. As per the descriptive and econometric analysis of this study there is high unemployment and rise in average price at a time opposed to the assumption of Philips curve.

Published in	Economics (Volume 9, Issue 4)
DOI	10.11648/j.eco.20200904.11
Page(s)	73-78
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

COVID-19, Philips Curve, Regression Analysis, Unemployment, Woldia Town, Ethiopia

References

[1]	Alemayehu Geda (2020). The Macroeconomic and Social Impact of COVID-19 in Ethiopia and Suggested Directions for Policy Response, Addis Ababa University.
[2]	Alemayehu Geda (2020). The COVID-19 Damage on the Ethiopian Service Sector: A Supplement Using Google Search Trend “Big data”.
[3]	Habtamu Legese Feyisa. The World Economy at COVID-19 Quarantine: Contemporary Review. International Journal of Economics, Finance and Management Sciences. Vol. 8, No. 2, 2020, pp. 63-74. doi: 10.11648/j.ijefm.20200802.11.
[4]	ILO (2020). COVID-19 and the world of work: Impact and policy responses. ilo.org/global/topics/coronavirus.
[5]	IMF Country Report No. 20/150 The Federal Democratic Republic of Ethiopia World Bank, 2020.
[6]	Kibrom Abay, Kibrom Tafere, Andinet Woldemichael (2020, forthcoming). Winners and losers from COVID-19: Global Evidence from Google search Data.
[7]	Pesaran, M. H., Shin, Y., Smith, R. J. 2001. Bounds Testing Approaches to the Analysis of Level Relationships, Journal of Applied Econometrics, 16: 289–326.
[8]	Tesfaye Boru (2020). The Impact of COVID 19 on the Private Banking System. Working paper on research gate.
[9]	Johns Hopkins University Medicine. (2020). Coronavirus Resource Center. https://coronavirus.jhu.edu/.
[10]	UNICEF (2020), Ethiopia Socio-economic impacts of COVID-19 Update - 14th May.
[11]	World Bank (2020). Managing the impact of COVID-19 on education systems around the world: How countries are preparing, coping, and planning for recovery. World Bank Blogs.
[12]	World Health Organization. (2020a). Coronavirus disease (COVID-2019) situation reports. World Health Organization.
[13]	U.S. Food and Drug Administration. (2020, March 11). Update information for blood establishments regarding the novel coronavirus outbreak. https://www.fda.gov/vaccines-blood.
[14]	European Milk Banking Association. (2020, February 25). COVID-19: EMBA position statement. https://europeanmilkbanking.com/covid-19-emba-position-statement/.
[15]	Human Milk Banking Association of North America. (2020, March 6). Milk banking and COVID-19. https://www.hmbana.org/news/statement-on-coronavirus.html.

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APA Style

Tadesse Wudu Abate. (2020). The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics, 9(4), 73-78. https://doi.org/10.11648/j.eco.20200904.11

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ACS Style

Tadesse Wudu Abate. The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics. 2020, 9(4), 73-78. doi: 10.11648/j.eco.20200904.11

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AMA Style

Tadesse Wudu Abate. The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics. 2020;9(4):73-78. doi: 10.11648/j.eco.20200904.11

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@article{10.11648/j.eco.20200904.11,
  author = {Tadesse Wudu Abate},
  title = {The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”},
  journal = {Economics},
  volume = {9},
  number = {4},
  pages = {73-78},
  doi = {10.11648/j.eco.20200904.11},
  url = {https://doi.org/10.11648/j.eco.20200904.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20200904.11},
  abstract = {The massive spread of corona creates pressure on the general systems of the world countries. As stated in some studies corona virus affect every institution and individuals of the world in many aspects. Specifically it results in high unemployment, low level of production and significance rise in the nominal price of commodities. This study tries to explain the change in those economic variables to analyze the effect of Covid-19 on the living standard of households in Woldia town, Amhara regional state of Ethiopia using a data obtained from the north wollo zone planning commission which had been collected from sampled individuals monthly. Since the issue is so recent and absence of many conducted researches on this area, this article have no specific chapter for review of literature and gives more focus for data analysis part. Then descriptive analysis indicates the presence of valuable rise in unemployment and average price levels simultaneously and the OLS regression result disproved the applicability of Philips curve for the study area under the influence of COVID-19. While it emerged from animal hosts, currently COVID-19 continues to spread across the globe through human-to-human contact. It resulted in many socio economy impacts on the world society and deteriorates their day to day activities. Unemployment is the major manifestation of COVID-19 due quarantine requirement designed to control the spread of the virus and this indirectly creates high level of increments in the average price of consumer necessity goods. As per the descriptive and econometric analysis of this study there is high unemployment and rise in average price at a time opposed to the assumption of Philips curve.},
 year = {2020}
}

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TY  - JOUR
T1  - The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”
AU  - Tadesse Wudu Abate
Y1  - 2020/11/23
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DO  - 10.11648/j.eco.20200904.11
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JO  - Economics
SP  - 73
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PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20200904.11
AB  - The massive spread of corona creates pressure on the general systems of the world countries. As stated in some studies corona virus affect every institution and individuals of the world in many aspects. Specifically it results in high unemployment, low level of production and significance rise in the nominal price of commodities. This study tries to explain the change in those economic variables to analyze the effect of Covid-19 on the living standard of households in Woldia town, Amhara regional state of Ethiopia using a data obtained from the north wollo zone planning commission which had been collected from sampled individuals monthly. Since the issue is so recent and absence of many conducted researches on this area, this article have no specific chapter for review of literature and gives more focus for data analysis part. Then descriptive analysis indicates the presence of valuable rise in unemployment and average price levels simultaneously and the OLS regression result disproved the applicability of Philips curve for the study area under the influence of COVID-19. While it emerged from animal hosts, currently COVID-19 continues to spread across the globe through human-to-human contact. It resulted in many socio economy impacts on the world society and deteriorates their day to day activities. Unemployment is the major manifestation of COVID-19 due quarantine requirement designed to control the spread of the virus and this indirectly creates high level of increments in the average price of consumer necessity goods. As per the descriptive and econometric analysis of this study there is high unemployment and rise in average price at a time opposed to the assumption of Philips curve.
VL  - 9
IS  - 4
ER  -

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Author Information

Tadesse Wudu Abate

Department of Economics, Faculty of Business and Economics, Woldia University, Woldia, Ethiopia

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APA Style

Tadesse Wudu Abate. (2020). The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics, 9(4), 73-78. https://doi.org/10.11648/j.eco.20200904.11

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ACS Style

Tadesse Wudu Abate. The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics. 2020, 9(4), 73-78. doi: 10.11648/j.eco.20200904.11

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AMA Style

Tadesse Wudu Abate. The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”. Economics. 2020;9(4):73-78. doi: 10.11648/j.eco.20200904.11

Copy | Download

@article{10.11648/j.eco.20200904.11,
  author = {Tadesse Wudu Abate},
  title = {The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”},
  journal = {Economics},
  volume = {9},
  number = {4},
  pages = {73-78},
  doi = {10.11648/j.eco.20200904.11},
  url = {https://doi.org/10.11648/j.eco.20200904.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20200904.11},
  abstract = {The massive spread of corona creates pressure on the general systems of the world countries. As stated in some studies corona virus affect every institution and individuals of the world in many aspects. Specifically it results in high unemployment, low level of production and significance rise in the nominal price of commodities. This study tries to explain the change in those economic variables to analyze the effect of Covid-19 on the living standard of households in Woldia town, Amhara regional state of Ethiopia using a data obtained from the north wollo zone planning commission which had been collected from sampled individuals monthly. Since the issue is so recent and absence of many conducted researches on this area, this article have no specific chapter for review of literature and gives more focus for data analysis part. Then descriptive analysis indicates the presence of valuable rise in unemployment and average price levels simultaneously and the OLS regression result disproved the applicability of Philips curve for the study area under the influence of COVID-19. While it emerged from animal hosts, currently COVID-19 continues to spread across the globe through human-to-human contact. It resulted in many socio economy impacts on the world society and deteriorates their day to day activities. Unemployment is the major manifestation of COVID-19 due quarantine requirement designed to control the spread of the virus and this indirectly creates high level of increments in the average price of consumer necessity goods. As per the descriptive and econometric analysis of this study there is high unemployment and rise in average price at a time opposed to the assumption of Philips curve.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Effect of Covid-19 on Unemployment and Price Changes in Ethiopia: Evidence from Woldia Town “Does the Downward Sloping Philips Curve Hold True”
AU  - Tadesse Wudu Abate
Y1  - 2020/11/23
PY  - 2020
N1  - https://doi.org/10.11648/j.eco.20200904.11
DO  - 10.11648/j.eco.20200904.11
T2  - Economics
JF  - Economics
JO  - Economics
SP  - 73
EP  - 78
PB  - Science Publishing Group
SN  - 2376-6603
UR  - https://doi.org/10.11648/j.eco.20200904.11
AB  - The massive spread of corona creates pressure on the general systems of the world countries. As stated in some studies corona virus affect every institution and individuals of the world in many aspects. Specifically it results in high unemployment, low level of production and significance rise in the nominal price of commodities. This study tries to explain the change in those economic variables to analyze the effect of Covid-19 on the living standard of households in Woldia town, Amhara regional state of Ethiopia using a data obtained from the north wollo zone planning commission which had been collected from sampled individuals monthly. Since the issue is so recent and absence of many conducted researches on this area, this article have no specific chapter for review of literature and gives more focus for data analysis part. Then descriptive analysis indicates the presence of valuable rise in unemployment and average price levels simultaneously and the OLS regression result disproved the applicability of Philips curve for the study area under the influence of COVID-19. While it emerged from animal hosts, currently COVID-19 continues to spread across the globe through human-to-human contact. It resulted in many socio economy impacts on the world society and deteriorates their day to day activities. Unemployment is the major manifestation of COVID-19 due quarantine requirement designed to control the spread of the virus and this indirectly creates high level of increments in the average price of consumer necessity goods. As per the descriptive and econometric analysis of this study there is high unemployment and rise in average price at a time opposed to the assumption of Philips curve.
VL  - 9
IS  - 4
ER  -

Copy | Download