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Effect of automation on unemployment: The case of Southern Africa

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  • Godfred Anakpo
  • Umakrishnan Kollamparambil

Abstract

The increasing level of automation in the fourth industrial revolution has received a global interest in research and political landscape in recent years. While some research advances have been made in the developed world with regard to its implications for unemployment, next to no study has so far sought to establish if there is any statistical relationship between automation and unemployment in developing countries where unemployment is very high. The purpose of this study is to examine the effect of automation on unemployment in Southern Africa. Findings from the study show that automation has a significant positive relationship with unemployment rate. The study also finds foreign direct investment and business cycle (higher production output change) to be negatively associated with unemployment. Based on these findings, it is recommended that proper investment in learning and skill development training aimed at making individuals more competitive with regard to automation be pursued to increase the prospect of employment.

Suggested Citation

  • Godfred Anakpo & Umakrishnan Kollamparambil, 2022. "Effect of automation on unemployment: The case of Southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 39(4), pages 516-527, July.
    • Handle: RePEc:taf:deveza:v:39:y:2022:i:4:p:516-527
    DOI: 10.1080/0376835X.2021.1978931
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    Cited by:

    1. Godfred Anakpo & Zizipho Xhate & Syden Mishi, 2023. "The Policies, Practices, and Challenges of Digital Financial Inclusion for Sustainable Development: The Case of the Developing Economy," FinTech, MDPI, vol. 2(2), pages 1-17, June.
    2. Keraga, Mezid N. & Stephan, Andreas, 2023. "Does innovation stimulate employment in Africa? New firm-level evidence from the Worldbank Enterprise Survey," Working Paper Series in Economics and Institutions of Innovation 494, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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