scholarly journals Impact of Disaggregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis Approach

2019 ◽  
Vol 1 (2) ◽  
pp. 47-57
Author(s):  
Aphu Elvis Selase
Keyword(s):  
Unemployment Rate ◽  
Health Expenditure ◽  
Public Expenditure ◽  
Generalized Method Of Moments ◽  
High Rate ◽  
Education Expenditure ◽  
African Countries ◽  
Long Run ◽  
Short Run ◽  
The Impact

The study demonstrated the impact of disaggregated public expenditure on unemployment rate in selected African countries with panel data spanning from 2000 to 2017. The data were majorly sourced from the World Bank Indicator. The study employed Generalized Method of Moments (GMM) techniques for empirical analysis. The findings of two-step system GMM showed that expenditure on infrastructure and education reduce unemployment rate, while expenditure on defense and health increase unemployment rate in the region. The short-run elasticity estimate showed that infrastructure and education expenditures reduce unemployment rate by 9% and 1.83%. A unit rise in defense and health expenditure increase unemployment rate by 5.2% and 84.5%. The long-run elasticity of infrastructure and education expenditure reduce unemployment rate by 3.8% and 7.89 %, while the long-run defense and health expenditure elasticity’s increase unemployment rate by 22.22% and 364.58% in the selected African countries. The policy implication is that, the positive relationship between expenditure on health and unemployment could be attributed to mismanagement of government funds due to corruption, while that of defense and unemployment could be high rate of insecurity and crimes in the region. Therefore, the study recommended among others a drastic measure to further improve the education sector through adequate investment in education that will help in skills, development and training. DOI: https://doi.org/10.5281/zenodo.3377972

scholarly journals Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis

2019 ◽  
pp. 1-14
Author(s):  
Favour C. Onuoha ◽  
Moses Oyeyemi, Agbede
Keyword(s):  
South Africa ◽  
Unemployment Rate ◽  
Health Expenditure ◽  
Central African Republic ◽  
Public Expenditure ◽  
Generalized Method Of Moments ◽  
High Rate ◽  
Equatorial Guinea ◽  
Long Run ◽  
The Impact

The study examined the impact of disaggregated public expenditure on unemployment rate in Angola, Benin, Botswana, Cameroun, Central African Republic, Chad, Egypt, Equatorial Guinea, Ethiopia, Ghana, Kenya, Mauritius, Morocco, Namibia, Nigeria, South Africa, Sudan, Tanzania, Togo and Tunisia with panel data spanning from 2000 to 2017. The data were majorly sourced from the World Bank Indicator. The study employed Generalized Method of Moments (GMM) techniques for empirical analysis. The findings of two-step system GMM showed that expenditure on infrastructure and education reduce unemployment rate, while expenditure on defense and health increase unemployment rate in the region. The short-run elasticity estimate showed that infrastructure and education expenditures reduce unemployment rate by 9% and 1.83%. A unit rise in defense and health expenditure increase unemployment rate by 5.2% and 84.5%. The long-run elasticities of infrastructure and education expenditure reduce unemployment rate by 3.8% and 7.89%, while the long-run defense and health expenditure elasticities increase unemployment rate by 22.22% and 364.58% in Angola, Benin, Botswana, Cameroun, Central African Republic, Chad, Egypt, Equatorial Guinea, Ethiopia, Ghana, Kenya, Mauritius, Morocco, Namibia, Nigeria, South Africa, Sudan, Tanzania, Togo and Tunisia. The policy implication is that, the positive relationship between expenditure on health and unemployment could be attributed to mismanagement of government funds due to corruption, while that of defense and unemployment could be high rate of insecurity and crimes in the region.Therefore, the study recommended among others a drastic measure to further improve the education sector through adequate investment in education that will help in skills, development and training.

Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

2020 ◽  
Vol 47 (5) ◽  
pp. 663-674
Author(s):  
Deepti Singh ◽  
Shruti Shastri
Keyword(s):  
Educational Attainment ◽  
Peer Review ◽  
Unemployment Rate ◽  
Public Expenditure ◽  
Secondary Level ◽  
Content Type ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
Enrolment Ratio

PurposeThe purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017.Design/methodology/approachThe study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaran et al. (2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model.FindingsThe empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate.Originality/valueThe study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0396

scholarly journals Deconstructing the Impact of Entrepreneurship on Income Inequality in Sub-Saharan Africa Countries

2020 ◽  
Vol 34 (1) ◽  
pp. 273-284
Author(s):  
Jimoh S. Ogede
Keyword(s):  
Income Inequality ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Macroeconomic Factors ◽  
Significance Level ◽  
Long Run ◽  
Short Run ◽  
Sub Saharan ◽  
Entrepreneurial Activities ◽  
The Impact

Abstract The study examines the impacts of entrepreneurship on income inequality in a panel of 29 Sub-Saharan African countries spanning from 2004 to 2020. The paper employs a dynamic heterogeneous panel approach to differentiate between long-run and short-run impacts of entrepreneurship on income inequality. The findings establish a robust and direct nexus between entrepreneurial activities and income disparity. The results of the two entrepreneurial indicators are stable. Besides, the coefficient of the human capital is positive in the regression and statistically significant at a 5 percent significance level. The proxies for macroeconomic factors exhibit diverse signs and impact, which suggest a policy stimulus aimed at refining macroeconomic situations and also ignite prospects for households to increase their incomes.

scholarly journals The Role of Renewable Energy and Ecological Footprint on Economic Growth in Francophone African Countries in presence of Institutions

2021 ◽  
Author(s):  
Ndzembanteh Aboubakary Nulambeh* ◽  
Kadir Yasin Eryiğit
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Ecological Footprint ◽  
Renewable Energy Sources ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
African Countries ◽  
Long Run ◽  
French Speaking ◽  
The Impact

Abstract This paper targets to examine the impact of renewable energy and ecological footprint on economic growth in 14 selected French-speaking countries in Africa. The study contributes to the ongoing debate in the literature on environment growth-nexus by providing evidence that economic growth emerges with environmental degradations and can be improved when there is a robust institutional framework. The present research used the generalized method of moments (GMM) to assess a dynamic growth model with data from 2007 to 2015. The results demonstrate that renewable energy is significant and negatively related to economic growth, which implies that renewable energy sources lower the per capita income growth in these countries. Meanwhile, the ecological footprint is positive and statistically significant in impacting economic growth in the long run. For institutions, we find that voice and accountability, political stability, and the rule of law are positive and statistically significant in influencing economic growth. Consequently, it is recommended that policymakers in this region develop dual policies that raise institutions' quality with minimal emissions of greenhouse gases.

scholarly journals The Nexus Among Economic Growth, Inflation and Unemployment in Bhutan

2019 ◽  
Vol 20 (1) ◽  
pp. 94-105
Author(s):  
Ugyen Tenzin
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Positive Association ◽  
Economic Output ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Employment Elasticity ◽  
The Impact

In order to understand the dynamics of unemployment in Bhutan at a macro-level, this study has explored the association among economic growth, inflation and unemployment from 1998 to 2016. The autoregressive distributed lag (ARDL) model was applied to estimate the impact of economic growth and inflation on unemployment. The results of this empirical analysis suggest that economic growth had no impact on the reduction of unemployment rate in Bhutan both in the short and in the long run. In fact, as the economic growth increased, so did the unemployment rate. However, inflation had a negative association with unemployment rate in the short run and a positive association in the long run. In other words, an increase in the employment rate led to an increase in the inflation in the short run. Likewise, if inflation is not monitored or controlled, the uncertainty of inflation can lead to lower investment and lower economic growth, thereby causing unemployment to rise in the long run. This study, therefore, recommends policymakers to take into account the employment elasticity with respect to economic output and focus on sectors, which have more absorptive capacity in engaging the young labour market entrants. JEL: B22, C22, E24, E31

scholarly journals Public Expenditure and Economic Growth: A Test of Wagner’s and Keynes Hypotheses in Nigeria and Angola Economies

2021 ◽  
Vol 1 (3) ◽  
pp. 21-26
Author(s):  
Saliu Mojeed Olanrewaju ◽  
Akeju Kemi Funlayo
Keyword(s):  
Economic Growth ◽  
Health Expenditure ◽  
Capital Investment ◽  
Public Expenditure ◽  
Government Expenditure ◽  
Education Expenditure ◽  
Investment Expenditure ◽  
Long Run ◽  
Johansen Cointegration ◽  
Wagner’S Theory

This study verifies the validation of Wagner’s theory and Keynes's hypothesis between three main government expenditure components (Health expenditure, education expenditure, and capital investment expenditure) and economic growth in Nigeria and Angola. The study employs Johansen cointegration and pairwise granger causality as the estimation techniques. Findings revealed no evidence of long-run relationships with government expenditure components of health, education, and capital investment and economic growth. The study equally reveals the validation of Wagner’s theory between growth and expenditure on health in both Nigeria and Angola. Evidence that confirms both Wagner’s theory and Keynes's hypothesis between growth and expenditure on education in Angola and validation of only Keynes hypothesis in Nigeria was found. Also, the study confirms the validation of Keynes's hypothesis between government expenditure on capital investment in both Nigeria and Angola

The impact of China's trade, aid and FDI on African economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Derrick Anquanah Cudjoe ◽  
He Yumei ◽  
Hanhui Hu
Keyword(s):  
Economic Growth ◽  
Manufacturing Industry ◽  
Manufacturing Sector ◽  
Generalized Method Of Moments ◽  
Marginal Effect ◽  
African Countries ◽  
Content Type ◽  
Long Run ◽  
Per Capita ◽  
The Impact

PurposeThis study examines the impact of China’s trade, aid and foreign direct investment (FDI) on the economic growth of Africa.Design/methodology/approachOur study covered 41 countries in Africa, cutting across the western, eastern, central, southern and northern sub-regions. The study adopted the dynamic system generalized method of moments (SGMM), feasible generalized least squares (FGLS) and Dumitrescu–Hurlin Panel Granger causality techniques for estimations.FindingsOverall, FDI, trade and aid from China have a nonlinear relationship with Africa’s economic growth. The findings reveal a key novelty in that the marginal effect on real per capita GDP increases when China’s FDI interacts with the manufacturing sector in Africa. These findings are robust to long-run estimations.Research limitations/implicationsGiven that we have examined the short-and long-run symbiotic effects of China’s FDI and Africa’s manufacturing sector and China’s aid and Africa’s manufacturing sector, more studies are warranted in this area, particularly to produce further empirical evidence of these findings. Moreover, future work could focus on investigating the country-specific effects of China’s trade, China’s FDI and China’s aid on real GDP per capita in each African country as our results reflect within-country elasticities.Originality/valueThis study provides new evidence on the impact of China’s trade, aid and FDI on the growth of African economies. To the best of our knowledge, this is the first study to empirically explore the long-run effects of China’s trade, FDI and aid on economic growth in African countries. This study also tests the claim of the displacement of Africa’s manufacturing industry by its Chinese counterparts.

scholarly journals Foreign Technologies and Indigenous Innovation Performance: Evidence from Selected African Countries

2020 ◽  
Author(s):  
Benjamin Azembila Asunka ◽  
Zhiqiang Ma ◽  
Mingxing Li ◽  
Oswin Aganda Anaba ◽  
Nelson Amowine
Keyword(s):  
Ordinary Least Squares ◽  
Policy Formulation ◽  
Negative Effects ◽  
African Countries ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Indigenous Innovation ◽  
Short Run ◽  
The Impact

Abstract This study analyzes the impact of imports and foreign direct investment inflows (FDI) on indigenous innovation in some selected African countries. Panel data of five African countries for the period between 1994 and 2018 is analyzed using trademark applications by residents as proxy for indigenous innovation. A vector error correction model is employed to analyze the short-run causality between variables, and fully modified ordinary least squares to analyze the long-run dynamics among variables. The results show that, on the whole, imported inputs have significant and positive effect on indigenous innovation output, while FDI has negative effects. Policy formulation in the region should encourage imports aimed at creating novel products.

Cohort Size and Unemployment Rate: New Insights from Nigeria

2021 ◽  
Vol 13 (1) ◽  
pp. 122-151
Author(s):  
Ademola Obafemi Young
Keyword(s):  
Unemployment Rate ◽  
Testing Procedure ◽  
Cohort Size ◽  
Bounds Testing ◽  
African Countries ◽  
Pooled Data ◽  
Dynamic Framework ◽  
Long Run ◽  
Short Run ◽  
The Relationship

The debate on the nature of the relationship between cohort size and unemployment rate has been widely studied and generated a substantial body of literature in labor economics discourse. However, an in-depth reading of this literature suggests that, besides the fact that findings are mixed and do not provide conclusive evidences, one hardly ever comes across studies exclusively on African countries. Likewise, generalized studies across countries employing pooled data seem to dominate the literature. In light of these, the current study examines the nature of the said relationship, over the period 1970–2019, in Nigeria in a multivariate and dynamic framework. Employing Bounds testing procedure, the article finds that both the short-run and long-run impacts of cohort size on overall unemployment rate are positive and statistically significant. This suggests that aggregate unemployment rate tends to be higher when many young people supply labor. In view of these findings, the article recommends that government should collaborate with private sector to develop and implement functional microcredit schemes. Such schemes should be flexibly structured to avert institutional bottlenecks and enhance accountability and transparency in their management.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

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