Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries
The paper examines empirically the impacts of agricultural sector value added and financial development on unemployment, using yearly data from 1995-2015. Eleven developing Southern African Development Community countries were selected for the study. The empirical analysis was carried out using seco...
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| Format: | Article |
| Language: | English |
| Published: |
Czech Academy of Agricultural Sciences
2019-05-01
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| Series: | Agricultural Economics (AGRICECON) |
| Subjects: | |
| Online Access: | https://agricecon.agriculturejournals.cz/artkey/age-201905-0003_does-financial-and-agriculture-sector-development-reduce-unemployment-rates-evidence-from-southern-african-cou.php |
| _version_ | 1828009381547999232 |
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| author | Gbolahan Olowu Godwin Olasehinde-Williams Murad Bein |
| author_facet | Gbolahan Olowu Godwin Olasehinde-Williams Murad Bein |
| author_sort | Gbolahan Olowu |
| collection | DOAJ |
| description | The paper examines empirically the impacts of agricultural sector value added and financial development on unemployment, using yearly data from 1995-2015. Eleven developing Southern African Development Community countries were selected for the study. The empirical analysis was carried out using second-generation econometric methods. The regression results revealed that both agricultural value added and financial development are important determinants of unemployment within the region. The results specifically show that agricultural value added is negatively associated with unemployment in both the short and long-run, although the long-run effect is many times bigger than the short-run impact. The results also show that in the long-run, both financial depth and financial efficiency are negatively associated with unemployment. Interactions between agricultural value added financial development and unemployment were further tested via panel bootstrap causality tests. The causality test results revealed the existence of significant one-way causality from agricultural value added to unemployment and from financial depth to unemployment for the region. It also showed that causality varies across individual countries within the region with different conditions, indicating the heterogeneous nature of the countries that make up the regional bloc. |
| first_indexed | 2024-04-10T08:37:42Z |
| format | Article |
| id | doaj.art-0c5007ec667841db80819d93da2d837d |
| institution | Directory Open Access Journal |
| issn | 0139-570X 1805-9295 |
| language | English |
| last_indexed | 2024-04-10T08:37:42Z |
| publishDate | 2019-05-01 |
| publisher | Czech Academy of Agricultural Sciences |
| record_format | Article |
| series | Agricultural Economics (AGRICECON) |
| spelling | doaj.art-0c5007ec667841db80819d93da2d837d2023-02-23T03:25:20ZengCzech Academy of Agricultural SciencesAgricultural Economics (AGRICECON)0139-570X1805-92952019-05-0165522323110.17221/263/2018-AGRICECONage-201905-0003Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countriesGbolahan Olowu0Godwin Olasehinde-Williams1Murad Bein2Cyprus International University Haspolat, Mersin, TurkeyEastern Mediterranean University, Gazimagusa, TurkeyCyprus International University Haspolat, Mersin, TurkeyThe paper examines empirically the impacts of agricultural sector value added and financial development on unemployment, using yearly data from 1995-2015. Eleven developing Southern African Development Community countries were selected for the study. The empirical analysis was carried out using second-generation econometric methods. The regression results revealed that both agricultural value added and financial development are important determinants of unemployment within the region. The results specifically show that agricultural value added is negatively associated with unemployment in both the short and long-run, although the long-run effect is many times bigger than the short-run impact. The results also show that in the long-run, both financial depth and financial efficiency are negatively associated with unemployment. Interactions between agricultural value added financial development and unemployment were further tested via panel bootstrap causality tests. The causality test results revealed the existence of significant one-way causality from agricultural value added to unemployment and from financial depth to unemployment for the region. It also showed that causality varies across individual countries within the region with different conditions, indicating the heterogeneous nature of the countries that make up the regional bloc.https://agricecon.agriculturejournals.cz/artkey/age-201905-0003_does-financial-and-agriculture-sector-development-reduce-unemployment-rates-evidence-from-southern-african-cou.phpbootstrap causalitygovernment expendituretradevalue added |
| spellingShingle | Gbolahan Olowu Godwin Olasehinde-Williams Murad Bein Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries Agricultural Economics (AGRICECON) bootstrap causality government expenditure trade value added |
| title | Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries |
| title_full | Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries |
| title_fullStr | Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries |
| title_full_unstemmed | Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries |
| title_short | Does financial and agriculture sector development reduce unemployment rates? Evidence from Southern African countries |
| title_sort | does financial and agriculture sector development reduce unemployment rates evidence from southern african countries |
| topic | bootstrap causality government expenditure trade value added |
| url | https://agricecon.agriculturejournals.cz/artkey/age-201905-0003_does-financial-and-agriculture-sector-development-reduce-unemployment-rates-evidence-from-southern-african-cou.php |
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