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Working Paper 201 - Does Intra-African Trade Reduce Youth Unemployment in Africa ?

  • John Anyanwu

    ()

This study empirically estimates the effect of Africa’s intra-regional trade on the burgeoning youth unemployment in the Continent. We investigate both the aggregate and gender-specific impacts. Our empirical estimates, using available cross-sectional time series data over the period, 1980 and 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 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 significant positive effect on youth unemployment in Africa. Government consumption expenditure and foreign direct investment have 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.

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Paper provided by African Development Bank in its series Working Paper Series with number 2107.

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Date of creation: 29 Apr 2014
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Handle: RePEc:adb:adbwps:2107
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  1. John Nkwoma Inekwe, 2013. "FDI, Employment and Economic Growth in Nigeria," African Development Review, African Development Bank, vol. 25(4), pages 421-433, December.
  2. Hartmut Egger & Udo Kreickemeier, 2009. "Firm Heterogeneity And The Labor Market Effects Of Trade Liberalization," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 187-216, 02.
  3. John Anyanwu, 2013. "Characteristics and Macroeconomic Determinants of Youth Employment in Africa," African Development Review, African Development Bank, vol. 25(2), pages 107-129.
  4. Hakim Hammouda & Stephen Karingi & Angelica Njuguna & Mustapha Jallab, 2009. "Why Doesn’t Regional Integration Improve Income Convergence in Africa?," African Development Review, African Development Bank, vol. 21(2), pages 291-330.
  5. Misbah Tanveer Choudhry & Enrico Marelli & Marcello Signorelli, 2012. "Youth unemployment rate and impact of financial crises," International Journal of Manpower, Emerald Group Publishing, vol. 33(1), pages 76-95, June.
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  9. Biscourp, Pierre & Kramarz, Francis, 2007. "Employment, skill structure and international trade: Firm-level evidence for France," Journal of International Economics, Elsevier, vol. 72(1), pages 22-51, May.
  10. Mehra, Rekha & Gammage, Sarah, 1999. "Trends, Countertrends, and Gaps in Women's Employment," World Development, Elsevier, vol. 27(3), pages 533-550, March.
  11. Sandra E. Black & Elizabeth Brainerd, 2004. "Importing equality? The impact of globalization on gender discrimination," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(4), pages 540-559, July.
  12. Lippoldt, Douglas, 2013. "Policy Priorities for International Trade and Jobs," Proceedings Issues, 2013: Employment, Immigration and Trade, December 15-17, 2013, Clearwater Beach, Florida 182509, International Agricultural Trade Research Consortium.
  13. John Anyanwu & Darline Augustine, 2013. "Gender Equality in Employment in Africa: Empirical Analysis and Policy Implications," African Development Review, African Development Bank, vol. 25(4), pages 400–420.
  14. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  15. Standing, Guy, 1999. "Global Feminization Through Flexible Labor: A Theme Revisited," World Development, Elsevier, vol. 27(3), pages 583-602, March.
  16. Attanasio, Orazio & Goldberg, Pinelopi & Pavcnik, Nina, 2003. "Trade Reforms and Wage Inequality in Colombia," CEPR Discussion Papers 4023, C.E.P.R. Discussion Papers.
  17. Susan Stone & Patricia Sourdin & Clarisse Legendre, 2013. "Trade and Labour Market Adjustment," OECD Trade Policy Papers 143, OECD Publishing.
  18. Mussa, Michael, 1993. "Making the Practical Case for Freer Trade," American Economic Review, American Economic Association, vol. 83(2), pages 372-76, May.
  19. Edme Dominguez & Rosalba Icaza & Cirila Quintero & Silvia Lopez & �sa Stenman, 2010. "Women Workers in the Maquiladoras and the Debate on Global Labor Standards," Feminist Economics, Taylor & Francis Journals, vol. 16(4), pages 185-209.
  20. Standing, Guy, 1989. "Global feminization through flexible labor," World Development, Elsevier, vol. 17(7), pages 1077-1095, July.
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