IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v5y2021i7p599-606.html
   My bibliography  Save this article

Dynamics of Manufacturing Sector Development and Youth Unemployment in Africa

Author

Listed:
  • AJEIGBE Omowumi Monisola

    (Department of Economics, Faculty of Social Sciences, Redeemers University, Ede, Nigeria)

  • OLOMOLA Phillip Akanni

    (Department of Economics, Faculty of Social Sciences, Obafemi Awolowo University, Ile-Ife, Nigeria)

  • ADELEKE Oluwayemisi Khadijat

    (Department of Economics, Faculty of Social Sciences, Redeemers University, Ede, Nigeria)

Abstract

The study examined the effect of manufacturing sector development on youth unemployment in Africa. The study made use of 33 African countries within the time frame of 2000-2018. Data was sourced from the world development indicators by the World Bank. The estimation technique used was the Panel Autoregressive Distributed lag which deals with the stationary series problem of different orders and allows us to study potential long term effects of structural economic policies. The variables used were in natural logarithms and they are Youth Unemployment, Manufacturing Value Added, Foreign Direct Investment, Gross Capital Formation and Domestic Credit to Private Sector. The result revealed a positive long run relationship among MVA, DCP FDI, GCF and YUEMP. In the short run, MVA and DCP showed a positive relationship to youth unemployment while FDI and GCF showed a negative relationship. The study recommended that to curb the menace of youth unemployment ravaging major African Countries, policy focal point should be directed towards the development of manufacturing sector, conducive economic environment to attract foreign direct investment, policies should be put in place to enhance capital formation with domestic credit being made available for new and existing entrepreneurs and industrialist.

Suggested Citation

  • AJEIGBE Omowumi Monisola & OLOMOLA Phillip Akanni & ADELEKE Oluwayemisi Khadijat, 2021. "Dynamics of Manufacturing Sector Development and Youth Unemployment in Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(7), pages 599-606, July.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:7:p:599-606
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-5-issue-7/599-606.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/dynamics-of-manufacturing-sector-development-and-youth-unemployment-in-africa/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eliana Carranza & Robert Garlick & Kate Orkin & Neil Rankin, 2020. "Job Search and Hiring with Two-sided Limited Information about Workseekers’ Skills," CSAE Working Paper Series 2020-10, Centre for the Study of African Economies, University of Oxford.
    2. Leila Patel & Zoheb Khan & Thomas Englert, 2020. "How might a national minimum wage affect the employment of youth in South Africa?," Development Southern Africa, Taylor & Francis Journals, vol. 37(1), pages 147-161, January.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Oluwasegun Eseyin & Elizabeth Oloni & Olufemi Ogunjobi & Fadeke Abiodun, 2021. "Governance and Youth Unemployment in Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(1), pages 220-231, January.
    5. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    6. Diao, Xinshen & Ellis, Mia & McMillan, Margaret S. & Rodrik, Dani, 2021. "Africa’s manufacturing puzzle: Evidence from Tanzanian and Ethiopian firms," IFPRI discussion papers 2020, International Food Policy Research Institute (IFPRI).
    7. Xinshen Diao & Mia Ellis & Margaret S. McMillan & Dani Rodrik, 2021. "Africa's Manufacturing Puzzle: Evidence from Tanzanian and Ethiopian Firms," NBER Working Papers 28344, National Bureau of Economic Research, Inc.
    8. Louise Fox & Alun Thomas, 2016. "Africa's Got Work To Do: A Diagnostic of Youth Employment Challenges in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 25(suppl_1), pages 16-36.
    9. Arno J. van Niekerk, 2020. "Towards inclusive growth in Africa," Development Southern Africa, Taylor & Francis Journals, vol. 37(3), pages 519-533, May.
    10. Mueller, Valerie & Rosenbach, Gracie & Thurlow, James, 2019. "Conclusion [in Youth and jobs in rural Africa: Beyond stylized facts]," IFPRI book chapters, in: Youth and jobs in rural Africa: Beyond stylized facts, chapter 10, pages yj277-288, International Food Policy Research Institute (IFPRI).
    11. Mueller, Valerie & Thurlow, James, 2019. "Youth and jobs in rural Africa: Beyond stylized facts: Synopsis:," IFPRI synopses 9780896296855, International Food Policy Research Institute (IFPRI).
    12. John C. Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129, June.
    13. Michael Takudzwa Pasara & Rufaro Garidzirai, 2020. "Causality Effects among Gross Capital Formation, Unemployment and Economic Growth in South Africa," Economies, MDPI, vol. 8(2), pages 1-12, April.
    14. Kathleen Beegle & Luc Christiaensen, 2019. "Accelerating Poverty Reduction in Africa [Accélérer la réduction de la pauvreté en Afrique]," World Bank Publications - Books, The World Bank Group, number 32354, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. AJEIGBE Omowumi Monisola & OLOMOLA Phillip Akanni & ADELEKE Oluwayemisi Khadijat, 2021. "Dynamics of Manufacturing Sector Development and Youth Unemployment in Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(07), pages 599-606, July.
    2. Nguimkeu, Pierre & Zeufack, Albert, 2024. "Manufacturing in structural change in Africa," World Development, Elsevier, vol. 177(C).
    3. Grégory Donnat, 2025. "Real Exchange Rate and External Public Debt in Emerging and Developing Countries," GREDEG Working Papers 2025-15, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Luc Christiaensen & Miet Maertens, 2022. "Rural Employment in Africa," World Bank Publications - Reports 37023, The World Bank Group.
    5. Meng, Chang & Ghafoori, Noorulhaq, 2024. "The economic impact of terrorism in South Asia," Socio-Economic Planning Sciences, Elsevier, vol. 96(C).
    6. Onatunji Olufemi Gbenga & Adejumo Oluwabunmi Opeyemi & Olabode Oluwayinka Samuel, 2024. "A new perspective on the asymmetric Phillips curve: Fresh evidence from ECOWAS member countries," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 115-135.
    7. Kouakou Jean Fidele SIÉ, 2023. "Industrial policy and labour productivity growth in Africa: does the technology choice matter?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-24, December.
    8. Siddique, Abu & Selvanathan, E.A. & Selvanathan, Saroja, 2016. "The impact of external debt on growth: Evidence from highly indebted poor countries," Journal of Policy Modeling, Elsevier, vol. 38(5), pages 874-894.
    9. Nusair, Salah A., 2019. "Oil price and inflation dynamics in the Gulf Cooperation Council countries," Energy, Elsevier, vol. 181(C), pages 997-1011.
    10. repec:ocp:rpecon:rp_05-24 is not listed on IDEAS
    11. Abbas, Shujaat, 2020. "Impact of oil prices on remittances to Pakistan from GCC countries: evidence from panel asymmetric analysis," MPRA Paper 107246, University Library of Munich, Germany.
    12. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    13. Hongbo Liu & Shuanglu Liang, 2019. "The Nexus between Energy Consumption, Biodiversity, and Economic Growth in Lancang-Mekong Cooperation (LMC): Evidence from Cointegration and Granger Causality Tests," IJERPH, MDPI, vol. 16(18), pages 1-15, September.
    14. Simplice A. Asongu & Ghassen El Montasser & Hassen Toumi, 2015. "Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach," Research Africa Network Working Papers 15/037, Research Africa Network (RAN).
    15. Huntington, Hillard, 2025. "Do high power prices slow electrification? Some panel data evidence," Energy Policy, Elsevier, vol. 203(C).
    16. Eleftherios Thalassinos & Marta Kadłubek & Le Minh Thong & Tran Van Hiep & Erginbay Ugurlu, 2022. "Managerial Issues Regarding the Role of Natural Gas in the Transition of Energy and the Impact of Natural Gas Consumption on the GDP of Selected Countries," Resources, MDPI, vol. 11(5), pages 1-22, April.
    17. Carlos Alberto Piscarreta Pinto Ferreira, 2022. "Revisiting The Determinants Of Sovereign Bond Yield Volatility," Working Papers REM 2022/0241, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    18. Malachy Ashywel Ugbaka & Scholastica A. Abuh-Amasi & Joseph Nsabe Ndome, 2022. "Rising External Debt and Diminishing Exports: Concurrent Constraints to Economic Progress in Nigeria," International Journal of Economics and Financial Issues, Econjournals, vol. 12(4), pages 13-18, July.
    19. Santos, Carlos Filipe & Fuinhas, José Alberto & Marques, António Cardoso, 2014. "O nexus energia-crescimento e o nível da auto-suficiência na produção de petróleo: análise com macro painel [Energy-growth nexus and oil self-sufficiency: macro panel analysis]," MPRA Paper 57008, University Library of Munich, Germany.
    20. Felicitas Nowak-Lehmann D. & Inmaculada Mart�nez-Zarzoso & Stephan Klasen & Dierk Herzer, 2009. "Aid and Trade - A Donor's Perspective," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1184-1202, August.
    21. Salim, Ruhul & Yao, Yao & Chen, George S., 2017. "Does human capital matter for energy consumption in China?," Energy Economics, Elsevier, vol. 67(C), pages 49-59.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:5:y:2021:i:7:p:599-606. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.