The Nexus between Economic Institution and Unemployment: Evidence from Sub-Sahara Africa (SSA)

Abdulhakeem Kilishi, Adebowale A. Hammed and Oladipupo Sodiq Abiodun
Additional contact information
Adebowale A. Hammed: University of Ilorin, Ilorin Nigeria, Postal: Department of Economics., http://unilorineconsworkingpapers.com.ng/
Oladipupo Sodiq Abiodun: University of Ilorin, Ilorin Nigeria, Postal: Department of Economics., http://unilorineconsworkingpapers.com.ng/

No 2, Working Papers from Department of Economics, University of Ilorin

Abstract: This study examines the nexus between economic institutions and unemployment using an unbalanced panel data for 37 Sub-Sahara African (SSA) countries between 1995 and 2018. Panel cointegration regression techniques of the Dynamic Fixed Effects (DFE) and Pool Mean Group (PMG) methods are used to gauge the models. The most consistent method is chosen based on the Hausman specification test. Our empirical results reveal that economic institutions have no significant impact on unemployment in the short run. We however found significant and negative impact of economic institutions on total, male and female unemployment in the long run. This suggests that it takes time for institutional reform to impact on unemployment. Thus, to reduce unemployment in the long run, it is imperative to improve on economic institutions that would grantee more free economy. Free economy encourages and protects private enterprises, promotes free movement of capital, labour and goods as well as maintains effective government and stable macroeconomic.

Keywords: Economic Institution; Unemployment; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: J60 J68 P48 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2020-02-26
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://unilorineconsworkingpapers.com.ng/download/WORKING%20PAPER%2002.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:decilo:0002

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Ilorin Contact information at EDIRC.
Bibliographic data for series maintained by Daniel Akanbi ().