Dynamics of Manufacturing Sector Development and Youth Unemployment in Africa
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Date
2021-07
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Abstract
The study examined the effect of manufacturing sector development on youth unemployment in Africa. The study made use of 33 African countries within the time frame of 2000-2018. Data was sourced from the world development indicators by the World Bank. The estimation technique used was the Panel Autoregressive Distributed lag which deals with the stationary series problem of different orders and allows us to study potential long term effects of structural economic policies. The variables used were in natural logarithms and they are Youth Unemployment, Manufacturing Value Added, Foreign Direct Investment, Gross Capital Formation and Domestic Credit to Private Sector. The result revealed a positive long run relationship among MVA, DCP FDI, GCF and YUEMP. In the short run, MVA and DCP showed a positive relationship to youth unemployment while FDI and GCF showed a negative relationship. The study recommended that to curb the menace of youth unemployment ravaging major African Countries, policy focal point should be directed towards the development of manufacturing sector, conducive economic environment to attract foreign direct investment, policies should be put in place to enhance capital formation with domestic credit being made available for new and existing entrepreneurs and industrialist.
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Keywords
Manufacturing value added, Youth unemployment, Decent work, Panel autoregressive distributed lag
Citation
Ajeigbe, O.M., Olomola, P.A. & Adeleke, O.K. (2021). Dynamics of Manufacturing Sector Development and Youth Unemployment in Africa. International Journal of Research and Innovation in Social Science (IJRISS). Vol 5(7), pp. 599-606