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Growth Intensity Of Employment In Africa: A Panel Data Approach

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  • KAMGNIA, Dia B.
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    Abstract

    The incidence of poverty has increased in the majority of African countries over the 1990, while a pro-employment growth is strongly believed to be an efficient means for fighting against poverty. Thus a quantitative analysis of the growth-employment nexus in Africa appeared necessary. More specifically, the growth intensity of employment is assessed based on some panel data models of employment, using annual data of 39 African countries, over the period 1995-2000. In the specific case of the dynamic panel model, a Fixed Effects estimation suggests that economic growth affects employment but with lags (up to 2 years). However GMM estimations indicate that the short run effects of GDP remain weak while credit to the private sector and FDI bear some substitution relationship with each other.

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    Bibliographic Info

    Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

    Volume (Year): 9 (2009)
    Issue (Month): 2 ()
    Pages:

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    Handle: RePEc:eaa:aeinde:v:9:y:2009:i:2_13

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    Related research

    Keywords: Growth intensity; employment persistence; Panel model; Fixed Effects; GMM estimations.;

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    References

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    1. Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004. "Growth Accelerations," CEPR Discussion Papers 4538, C.E.P.R. Discussion Papers.
    2. Sanjeev Gupta & Catherine A. Pattillo & Kevin Joseph Carey, 2005. "Sustaining Growth Accelerations and Pro-Poor Growth in Africa," IMF Working Papers 05/195, International Monetary Fund.
    3. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
    4. Brian Silverstone & Richard Harris, 2001. "Testing for asymmetry in Okun's law: A cross-country comparison," Economics Bulletin, AccessEcon, vol. 5(2), pages 1-13.
    5. Guisan, M.Carmen & Aguayo, Eva & Exposito, Pilar, 2001. "Economic growth and cycles: Cross-country models of education, industry and fertility and international comparisons," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 1(1), pages 9-37.
    6. Brauninger, Michael & Pannenberg, Markus, 2002. "Unemployment and productivity growth: an empirical analysis within an augmented Solow model," Economic Modelling, Elsevier, vol. 19(1), pages 105-120, January.
    7. Robert J. Gordon, 1984. "Unemployment and Potential Output in the 1980s," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 15(2), pages 537-568.
    8. Guisan, M.Carmen & Aguayo, Eva & Exposito, Pilar, 2001. "Education and World Development in 1900-1999: A General View and Challenges for the Near Future," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 1(1), pages 101-110.
    9. GUISAN, Carmen & Neira, Isabel, 2006. "Direct and Indirect Effects of Human Capital on World Development, 1960-2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1), pages 17-34.
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