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    The effects of foreign direct investment on youth unemployment in the Southern African Development Community

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    Journal Article (2.243Mb)
    Date
    2020-07-27
    Author
    Mkombe, D.
    Hirpa Tufa, A.
    Alene, A.
    Manda, J.
    Feleke, S.
    Abdoulaye, T.
    Manyong, V.
    Type
    Journal Article
    Review Status
    Peer Review
    Target Audience
    Scientists
    Metadata
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    Abstract/Description
    This paper examines the effect of foreign direct investment (FDI) on youth unemployment in the Southern African Development Community (SADC) region using panel data from the World Bank World Development Indicators for the period 1994–2017. Results from the Feasible Generalized Least Squares (FGLS-Parks) technique show that FDI has an insignificant effect on reducing youth unemployment in the SADC region. This could be because the type of FDI in the region is partly mergers and acquisitions, which has fewer jobs creating capacity compared to Greenfield investment. This suggests the need for governments in the region to pursue labour-absorbing FDI policies and also ensure that foreign investment inflows are channelled towards labour-intensive sectors that have high labour absorptive capacity such as horticulture and floriculture.
    https://dx.doi.org/10.1080/0376835X.2020.1796598
    Multi standard citation
    Permanent link to this item
    https://hdl.handle.net/20.500.12478/7615
    IITA Authors ORCID
    Adane Tufahttps://orcid.org/0000-0001-9801-6526
    Arega Alenehttps://orcid.org/0000-0002-2491-4603
    Julius Mandahttps://orcid.org/0000-0002-9599-5906
    Shiferaw Felekehttps://orcid.org/0000-0002-0759-4070
    Tahirou Abdoulayehttps://orcid.org/0000-0002-8072-1363
    Victor Manyonghttps://orcid.org/0000-0003-2477-7132
    Digital Object Identifier (DOI)
    https://dx.doi.org/10.1080/0376835X.2020.1796598
    Research Themes
    Social Science and Agribusiness
    IITA Subjects
    Agribusiness; Agronomy; Policies and Institutions
    Agrovoc Terms
    Youth Employment; Youth; Unemployment; Poverty Alleviation; Economic Growth
    Regions
    Africa
    Hubs
    Southern Africa Hub; Eastern Africa Hub; Headquarters and Western Africa Hub
    Journals
    Development Southern Africa
    Collections
    • Journal and Journal Articles4835
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