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Does Intra-African Trade Reduce Youth Unemployment in Africa?

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  • John C. Anyanwu

Abstract

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. 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.
    2. 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.
    3. Asongu, Simplice A & Singh, Pritam & Le Roux, Sara, 2016. "Fighting Software Piracy: Some Global Conditional Policy Instruments," MPRA Paper 73088, University Library of Munich, Germany, revised Aug 2016.
    4. 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.
    5. Asongu, Simplice & De Moor, Lieven, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," MPRA Paper 69448, University Library of Munich, Germany.
    6. Holden, Stein T. & Tilahun, Mesfin, 2018. "Land rental as a complementary income source for land-poor youth," CLTS Working Papers 6/18, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 06 Jun 2018.

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