YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA
The study investigates whether policies, both regional and country specific, should mainly focus on accelerating economic growth in the region to reduce youth unemployment in the SADC region. In this endeavour, the study is based on Okun’s law which prescribes that unemployment rates should generall...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universitatea din Craiova
2022-04-01
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| Series: | Annals of the University of Craiova: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://feaa.ucv.ro/annals/v1_2022/006.pdf |
| _version_ | 1828414710280617984 |
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| author | Samuel Chingoiro Robert P. Machera Strike Mbulawa |
| author_facet | Samuel Chingoiro Robert P. Machera Strike Mbulawa |
| author_sort | Samuel Chingoiro |
| collection | DOAJ |
| description | The study investigates whether policies, both regional and country specific, should mainly focus on accelerating economic growth in the region to reduce youth unemployment in the SADC region. In this endeavour, the study is based on Okun’s law which prescribes that unemployment rates should generally begin to fall when economic growth rates rises above the economy’s potential. The study uses panel data for selected SADC countries whose annual youth unemployment rate is above the region’s average annual rate of 20%. Upon performing a variety of panel model mis-specification tests, the systems GMM model was chosen as the suitable model. Our findings support Okun’s proposition of a negative relationship between changes in economic growth and changes in unemployment rates. Our model predicts a 9.85 percent reduction in youth unemployment for every one-point increase above the region’s GDP growth rate. |
| first_indexed | 2024-12-10T13:31:23Z |
| format | Article |
| id | doaj.art-5ec449eecdbf4e8baf3b04161bf55c5b |
| institution | Directory Open Access Journal |
| issn | 1223-365X 1843-3723 |
| language | English |
| last_indexed | 2024-12-10T13:31:23Z |
| publishDate | 2022-04-01 |
| publisher | Universitatea din Craiova |
| record_format | Article |
| series | Annals of the University of Craiova: Economic Sciences Series |
| spelling | doaj.art-5ec449eecdbf4e8baf3b04161bf55c5b2022-12-22T01:46:57ZengUniversitatea din CraiovaAnnals of the University of Craiova: Economic Sciences Series1223-365X1843-37232022-04-011505161YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATASamuel Chingoiro0Robert P. Machera1Strike Mbulawa2Botho University, Faculty of Business and Accounting, BotswanaBotho University, Faculty of Business and Accounting, BotswanaBotho University, Faculty of Business and Accounting, BotswanaThe study investigates whether policies, both regional and country specific, should mainly focus on accelerating economic growth in the region to reduce youth unemployment in the SADC region. In this endeavour, the study is based on Okun’s law which prescribes that unemployment rates should generally begin to fall when economic growth rates rises above the economy’s potential. The study uses panel data for selected SADC countries whose annual youth unemployment rate is above the region’s average annual rate of 20%. Upon performing a variety of panel model mis-specification tests, the systems GMM model was chosen as the suitable model. Our findings support Okun’s proposition of a negative relationship between changes in economic growth and changes in unemployment rates. Our model predicts a 9.85 percent reduction in youth unemployment for every one-point increase above the region’s GDP growth rate.http://feaa.ucv.ro/annals/v1_2022/006.pdfunemploymentgrowthokun’s law |
| spellingShingle | Samuel Chingoiro Robert P. Machera Strike Mbulawa YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA Annals of the University of Craiova: Economic Sciences Series unemployment growth okun’s law |
| title | YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA |
| title_full | YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA |
| title_fullStr | YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA |
| title_full_unstemmed | YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA |
| title_short | YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN SADC COUNTRIES: AN APPLICATION OF OKUN’S LAW USING PANEL DATA |
| title_sort | youth unemployment and economic growth in sadc countries an application of okun s law using panel data |
| topic | unemployment growth okun’s law |
| url | http://feaa.ucv.ro/annals/v1_2022/006.pdf |
| work_keys_str_mv | AT samuelchingoiro youthunemploymentandeconomicgrowthinsadccountriesanapplicationofokunslawusingpaneldata AT robertpmachera youthunemploymentandeconomicgrowthinsadccountriesanapplicationofokunslawusingpaneldata AT strikembulawa youthunemploymentandeconomicgrowthinsadccountriesanapplicationofokunslawusingpaneldata |