Testing the best model to measure the impact of economic changes in the unemployment rate in the economy of the Kingdom of Bahrain for the period (1991-2013)

Abstract

The study aims to select the best equation represents the phenomenon of unemployment in the kingdom of Bahrain for the period (1991-2013), as adopted on a gradual gradient method to determine the effect of economic variables in the unemployment rate according to the standard statistical criteria. The study concluded that the best model the unemployment rate is the model which contains two variables are explanatory rate of inflation and the rate of capital stock growth. The regression parameters signal compatible with the logic of economic theory in the form, and be the explanatory variables have statistically significant, as well as the high statistical significance of the estimated parameters in the model as a whole.