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Growth-youth unemployment nexus in upper-middle-income countries in Sub-Saharan Africa

Author

Listed:
  • Orobosa Abraham IHENSEKHIEN

    (Benson Idahosa University, Nigeria)

  • Leonard Nosa AISIEN

    (Benson Idahosa University, Nigeria)

Abstract

The issue concerning growth-youth unemployment nexus has not been verified with respect to upper middle-income countries (UMIC) in Sub-Saharan Africa (SSA). The importance of this paper is to ascertain the relationship between economic growth and youth unemployment based on panel and individual countries data in term of annual series data from 1991 to 2017. To achieve the objective of this paper, data were sourced from the World Bank development indicators, for GDP growth rate and youth unemployment rate. Several statistical and econometric tests were conducted, the results obtained revealed that the average GDP-growth rate was 6.36% while youth unemployment rate was 32.30% for UMIC in SSA. The empirical results indicated that there exists a long-run and positive relationship between the variables of GDP-growth rate and youth unemployment rate in UMIC in SSA and that Okun’s law is not applicable in these countries.

Suggested Citation

  • Orobosa Abraham IHENSEKHIEN & Leonard Nosa AISIEN, 2019. "Growth-youth unemployment nexus in upper-middle-income countries in Sub-Saharan Africa," Turkish Economic Review, EconSciences Journals, vol. 6(1), pages 62-76, January.
    • Handle: RePEc:cvv:journ2:v:6:y:2019:i:1:p:62-76
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    References listed on IDEAS

    as
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    2. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    3. Bean, Charles & Pissarides, Christopher, 1993. "Unemployment, consumption and growth," European Economic Review, Elsevier, vol. 37(4), pages 837-854, May.
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    Keywords

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    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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