South African Job Creation, a Myth or Reality? The Role of Economic Injections as Solution to The Employment Issues

Thomas Habanabakize () and Zandri Dickason ()
Additional contact information
Thomas Habanabakize: North-West University
Zandri Dickason: North-West University

Acta Universitatis Danubius. OEconomica, 2021, issue 17(5), 92-107

Abstract: The paper investigated the effect of economic injections components (exports, government expenditure and domestic investment) on South African employment growth. The study employed quarterly secondary data for the period 2002-2021. The ARDL, ECM and Granger causality approaches were utilized to determine the long run, short-run and causality relationships amongst variables. The results indicated that the long-run growth in both exports and government expenditure leads to employment growth whilst a rise in domestic investment reduces employment levels. Irrespective of long run results, the domestic investment significantly creates jobs in the short term. Additionally, the study results suggested a bidirectional causality between employment exports and a unidirectional from government spending towards employment. Based on the aforementioned results, the study concluded that economic injections play a crucial role in curbing unemployment growth in South Africa. Therefore, the South African government should induce and strengthen exports oriented policies and increase its spending on production-related activities rather than consumption expenditure.

Keywords: employment; economic injection; job creation; unemployment; South Africa (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1117/1649 (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:dug:actaec:y:2021:i:5:p:92-107

Access Statistics for this article

More articles in Acta Universitatis Danubius. OEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Daniela Robu ().