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Does Intra‐African Trade Reduce Youth Unemployment in Africa?

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  • John C. Anyanwu

Abstract

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
    DOI: 10.1111/1467-8268.12082
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    2. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers of the African Governance and Development Institute. 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.
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    6. 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.
    7. Holden, Stein T. & Tilahun, Mesfin, 2021. "Are land-poor youth accessing rented land? Evidence from northern Ethiopia," Land Use Policy, Elsevier, vol. 108(C).
    8. 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.
    9. Gislain Stéphane Gandjon Fankem, 2016. "Les déterminants du faible degré d'intégration commerciale de la CEEAC: le poids de la fragmentation politique, de la prolifération des Communautés Economiques Régionales et du niveau de démocr," African Development Review, African Development Bank, vol. 28(4), pages 383-396, December.
    10. Awad, Atif, 2019. "Does economic integration damage or benefit the environment? Africa's experience," Energy Policy, Elsevier, vol. 132(C), pages 991-999.
    11. Mert TOPCU & Lütfi BİÇİMVEREN, 2020. "Regional Youth Unemployment in Turkey: Do Determinants Vary by Gender?," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 7(2), pages 51-67, July.
    12. Frank Iyekoretin Ogbeide & Hilary Kanwanye & Sunday Kadiri, 2016. "Revisiting the Determinants of Unemployment in Nigeria: Do Resource Dependence and Financial Development Matter?," African Development Review, African Development Bank, vol. 28(4), pages 430-443, December.
    13. 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 16 Oct 2019.

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