摘要：This study presents the new regression estimates of the relationship between unemployment and economic growth for 13 selected European Union member countries over the period 1993-2012. Pooled OLS and Fixed effect techniques are used to analyze the panel data for measuring group effects, individual country effects, and time effects while exploring the relationship between unemployment rate and economic growth. Results demonstrate that higher unemployment rate has significant negative impact on GDP per capita (a proxy for economic growth). The results also investigated that economic growth seems to be significantly affected by Internet users and Military expenditures. Based on results the author has concluded that reduction in unemployment rate would be a better option for more and sustained economic growth and also improving the welfare of the people.
