The effect of unemployment on economic growth in South Africa (1994-2016)

Sibusiso Clement Makaringe and Hlalefang Khobai

MPRA Paper from University Library of Munich, Germany

Abstract: This study sought to investigate the trends and impact of unemployment on economic growth in South Africa using quarterly data over the period 1994Q1 to 2016Q4. The Auto Regressive Distribution Lag (ARDL) bounds test approach is applied to determine the existence of the long run linkage among the variables. The results from the ARDL model suggest that there is a long run relationship between unemployment and economic growth. The empirical results obtained confirmed that there is a negative relationship between unemployment and economic growth both in the long and short run.

Keywords: Unemployment; Labour Force; Economic Growth; Co-integration; South Africa; Autoregressive Distribution Lag Model (ARDL). (search for similar items in EconPapers)
JEL-codes: A13 B22 C30 H30 (search for similar items in EconPapers)
Date: 2018-03-19
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Working Paper: The effect of unemployment on economic growth in South Africa (1994-2016) (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:85305

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