Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 363

Full Length Research Paper

Okun's law using structural change with threshold approach: Empirical evidence from the Democratic Republic of Congo (DRC)

Morisho Mwanabingo Nene
  • Morisho Mwanabingo Nene
  • Faculty of Economics and Management, Catholic University of Bukavu (UCB), DR Congo.
  • Google Scholar
Minane Mpore Matthieu
  • Minane Mpore Matthieu
  • Researcher, Pole Institute, Goma, DR Congo.
  • Google Scholar

  •  Received: 07 February 2024
  •  Accepted: 20 March 2024
  •  Published: 31 May 2024


This paper employs the structural change with threshold approach to empirically verify Okun's law in the DRC. Utilizing quarterly data, the findings robustly support the existence of Okun's law in the DRC, albeit with a coefficient lower than that originally proposed by Okun. Moreover, the results reveal that the Okun coefficient in the DRC fluctuates significantly over time, irrespective of the economy's recessionary or expansionary phase. Based on these findings, it is imperative to diversify production across all sectors of the economy and enhance the business climate to ensure that economic growth translates into a notable reduction in the unemployment rate. Additionally, improving the education and skills of the labor force emerges as another crucial factor in this regard.


Key words: Okun's law, structural change with threshold, Democratic Republic of Congo (DRC).