Inflation, Investment, Employment, and Economic Growth: Longitudinal Evidence Across Global Economies
Keywords:
Inflation, Investment, Unemployment, Economic Growth, Longitudinal AnalysisAbstract
The longitudinal relationships among inflation, investment, unemployment, and economic growth across global economies using historical macroeconomic data covering 217 economies from 1976 to 2025. A quantitative research approach was employed, incorporating descriptive statistics, temporal trend analysis, and Pearson correlation analysis to evaluate macroeconomic patterns and relationships. The findings revealed substantial variation in inflation, with a mean of 25.09%, reflecting considerable differences in economic stability across countries and periods. Investment, measured through gross capital formation, averaged 23.70% of GDP, while unemployment averaged 8.07%. Correlation analysis demonstrated a weak positive association between investment and nominal GDP growth (r = 0.106), whereas unemployment (r = −0.046) and inflation (r = −0.026) exhibited weak negative relationships. Longitudinal comparisons further highlighted fluctuations in economic conditions, particularly during periods of global economic disruption. The findings suggest that macroeconomic relationships vary across economic environments and cannot be adequately explained through individual indicators alone. Further research incorporating real GDP growth and advanced panel econometric techniques is recommended.
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