International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 8, Issue 6 (June 2021), Pages: 118-127

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 Original Research Paper

 Title: Assessment of Yemen’s macroeconomy performance during 2001-2015 using Kaldor’s magic square

 Author(s): Mehmet Hilmi Özkaya 1, *, Maeen Alhuwesh 2

 Affiliation(s):

 1Department of Economics, Faculty of Economics and Administrative Sciences, Uşak University, Uşak, Turkey
 2Department of Economics, Faculty Administrative Sciences, Taiz University, Taiz, Yemen

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-6617-9259

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2021.06.014

 Abstract:

Assessing a certain country’s macro-economy performance faces innumerable challenges, of which the most important ones are running counter to the objectives of economic policy. Added to these challenges is the absence of a consensus among economists regarding the identification of variables, which can be taken for granted while assessing a country’s macro-economy performance? The present study aims at assessing Yemen’s macro-economy performance during the period 2001-2015 using the four economic variables (economic growth, unemployment, inflation, and current account) that constitute Kaldor’s Magic Square chart of 1971. To avoid challenges connected with variables’ measurement, the economic welfare indicator has been used. The findings show a drastic deterioration in the level of economic welfare during the period mentioned above, with an impressive decrease in the value of economic welfare from 0.36 in 2001 to zero in 2015 as the magic square scale showed. Assessing the economic performance during the period showed that the economic performance in 2001 was better than that of 2015, with a departure of Yemen’s economic performance from the performance of the wonderland economy. Hence, Yemen’s economy can be described as an ill-performance economy, basically due to the high averages of unemployment and inflation. 

 © 2021 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Index of economic welfare, Macroeconomic performance, Magic square approach, Yemen’s economy

 Article History: Received 2 December 2020, Received in revised form 26 February 2021, Accepted 2 March 2021

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Declaration

 This study was derived from the ongoing Ph.D. dissertation entitled "The Effectiveness of Monetary Policy Channels in Achieving the Objectives of Magic Square:  An Econometric Analysis on Yemen Economy" of Maeen Alhuwesh under the advisory of Assoc. Prof. Dr. M. Hilmi Özkaya.

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

  Özkaya MH and Alhuwesh M (2021). Assessment of Yemen’s macroeconomy performance during 2001-2015 using Kaldor’s magic square. International Journal of Advanced and Applied Sciences, 8(6): 118-127

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 Figures

 Fig. 1 Fig. 2 Fig. 3 Fig. 4 Fig. 5 Fig. 6 Fig. 7 Fig. 8 Fig. 9 

 Tables

 Table 1 Table 2 Table 3 

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