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

Makaringe, Sibusiso Clement and Khobai, Hlalefang (2018): The effect of unemployment on economic growth in South Africa (1994-2016).

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Unemployment, Labour Force, Economic Growth, Co-integration, South Africa, Autoregressive Distribution Lag Model (ARDL).
• Subjects: A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C30 - General; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General

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