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Does Intra-African Trade Reduce Youth Unemployment in Africa?


  • John C. Anyanwu


type="main" xml:lang="en"> This study empirically estimates the effect of Africa's intra-regional trade on the burgeoning youth unemployment in the continent. This is necessary since very few studies have been undertaken in the particular context of African countries. To the best of our knowledge there are no studies exploring the intra-African trade–youth unemployment nexus in Africa. We investigate both the aggregate and gender-specific impacts. Our empirical estimates, using available cross-sectional time series data over the period 1980 to 2010, suggest that higher levels of intra-African trade reduce both the aggregate, female and male youth unemployment in Africa. In addition, our results show that domestic investment rate, institutionalized democracy, secondary education, inflation, economic growth, and higher urbanization tend to reduce youth unemployment both on the aggregate and gender-differentiated and therefore are good for youth unemployment reduction in the continent. On the other hand, higher real per capita GDP and to a lesser extent credit to the private sector have a significant positive effect on youth unemployment in Africa. Government consumption expenditure and foreign direct investment have an insignificant effect on both the aggregate level and the gendered level of youth unemployment in Africa. Based on these results, some policy recommendations are proffered.

Suggested Citation

  • John C. Anyanwu, 2014. "Does Intra-African Trade Reduce Youth Unemployment in Africa?," African Development Review, African Development Bank, vol. 26(2), pages 286-309, June.
  • Handle: RePEc:bla:afrdev:v:26:y:2014:i:2:p:286-309

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    References listed on IDEAS

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    Cited by:

    1. Asongu, Simplice A., 2017. "Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 103-114.
    2. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers 15/040, African Governance and Development Institute..
    3. Blaise Gnimassoun, 2018. "Regional Integration: Do intra-African trade and migration improve income in Africa?," EconomiX Working Papers 2018-9, University of Paris Nanterre, EconomiX.
    4. Simplice Asongu & Pritam Singh & Sara Le Roux, 2016. "Fighting Software Piracy: Some Global Conditional Policy Instruments," Working Papers 16/004, African Governance and Development Institute..
    5. Urbánné Mező, Júlia & Udvari, Beáta, 2016. "Munkapiaci rugalmasság és ifjúsági foglalkoztathatóság
      [Labour-market flexibility and youth employment]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 431-460.

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