Oksana Sytnyk, Mariana Pova\u017eanov\u00e1, Faculty of Economics, Matej Bel University in Bansk\u00e1 Bystrica, Slovak Republic
\nMartin Bo\u010fa, Faculty of Economics, Matej Bel University in Bansk\u00e1 Bystrica, Slovak Republic; Faculty of Social and Economic Studies, University of J\u00e1n Evangelista Purky\u0148e in \u00dast\u00ed nad Labem, Czech Republic<\/p>\n
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Type of article: scientific article
\nPages: 25 \u2013 51 <\/p>\n
The paper employs a regression approach based on a systematically functionally varying slope coefficient in order to estimate Okun’s law for the three Baltic economies for the years 2000 \u2013 2022. The Okun equation is extended with a complementary structural equation expressing the Okun coefficient as a deterministic function of selected time-varying factors from a broader set. The Baltic economies are viewed as a single common economic region with national specificities, but synchronized development, and explanatory factors are chosen with regard to the high trade openness of Baltic economies and their active participation in international relations. It was found that international economic relations, whether represented through export activity, investment flows or labour force mobility, can satisfactorily explain the mutual relationship between unemployment and output over the business cycle.<\/p>\n