Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis

Onuoha, Favour Chidinma; Oyeyemi, Agbede Moses

doi:10.9734/jemt/2019/v24i530175

Cited by 22 publications

(17 citation statements)

References 14 publications

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“…However, the results of HTE and patent applications show that these technology variables reduce employment. In addition, as education expenditures increase employment, In addition, our finding that investment in education can play an important role in reducing unemployment rates result is similar to the results of Onuoha and Moses (2019) and Pirim et al (2014). As per the findings of the causality panel, there has been a one-way connection of causality between technical growth and unemployment in EU countries.…”

Section: Conclusion and Policy Recommendationssupporting

confidence: 89%

Teknolojik Büyüme ve Eğitim Harcamalarının İşsizlik Üzerine Etkisi: Panel ARDL-PMG Yaklaşımından Kanıtlar

HAN¹

2021

JEIM

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The aim of this study is to examine the short and long-term effects of technological development variables (R&D expenditures, high technology exports and patent applications) and public education expenditures on unemployment using the ARDL-PMG approach. Methodology: Panel Ardl model, which is known as an error correction model and allows the diagnosis of short-and long-term relationships, is used. Do technological advances cause the unemployment rate to rise? And Is there a link between technological advances, expenditure on education and employment? In this study, which tries to answer these two questions, ARDL and DH panel causality tests were applied for the European Union. Findings: According to the Panel ARLD-PMG analysis findings, while R&D spending increases unemployment in the short term, a 1% increase in R&D spending decreases unemployment by 1.42% over the long term. Similarly, a 1% increase in education expenditure decreases unemployment by 0.165% over the long term. Also, R&D spending and high technology exports have bidirectional causation, and bi-directional causality has been identified between unemployment and education expenditures. Practical Implications: While the widespread use of Industry 4.0 provides significant job savings, it creates pressure on employment. Policymakers should set more careful policies to support employment. The possibility of technological unemployment spreading can cause individual and social instabilities and problems. Originality: The contribution of the study to the literature allows us to see the effectiveness of public education expenditures while determining the effect of technological developments on unemployment.

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Section: Conclusion and Policy Recommendationssupporting

confidence: 89%

Teknolojik Büyüme ve Eğitim Harcamalarının İşsizlik Üzerine Etkisi: Panel ARDL-PMG Yaklaşımından Kanıtlar

HAN¹

2021

JEIM

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“…General government usually refers to local, regional and central governments. (Onuoha and Agbede, 2019).…”

Section: Data and Measurementmentioning

confidence: 99%

Impact of Disaggregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis Approach

Selase

2019

aijhass

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The study demonstrated the impact of disaggregated public expenditure on unemployment rate in selected African countries with panel data spanning from 2000 to 2017. The data were majorly sourced from the World Bank Indicator. The study employed Generalized Method of Moments (GMM) techniques for empirical analysis. The findings of two-step system GMM showed that expenditure on infrastructure and education reduce unemployment rate, while expenditure on defense and health increase unemployment rate in the region. The short-run elasticity estimate showed that infrastructure and education expenditures reduce unemployment rate by 9% and 1.83%. A unit rise in defense and health expenditure increase unemployment rate by 5.2% and 84.5%. The long-run elasticity of infrastructure and education expenditure reduce unemployment rate by 3.8% and 7.89 %, while the long-run defense and health expenditure elasticity’s increase unemployment rate by 22.22% and 364.58% in the selected African countries. The policy implication is that, the positive relationship between expenditure on health and unemployment could be attributed to mismanagement of government funds due to corruption, while that of defense and unemployment could be high rate of insecurity and crimes in the region. Therefore, the study recommended among others a drastic measure to further improve the education sector through adequate investment in education that will help in skills, development and training. DOI: https://doi.org/10.5281/zenodo.3377972

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“…Obi et al (2016) examine government education spending and education outcome in Nigeria from 1970 to 2013 and find a positive and significant effect of public education spending on education outcome in Nigeria. More recently, Onuoha et al (2019) also report negative elasticity of unemployment rate with respect to government expenditure on education for a panel of 17 African countries during the period 2000–2017.…”

Section: Introductionmentioning

confidence: 97%

Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

Singh

Shastri

2020

IJSE

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PurposeThe purpose of this paper is to examine the nexus among public expenditure allocated to education, educational attainment at secondary level and unemployment rate in India for the period 1987–2017.Design/methodology/approachThe study employs autoregressive distributed lags (ARDL) bound testing approach suggested by Pesaran et al. (2001) to find the long-run relationship among the variables. The causal linkages are investigated through block exogeneity test based on vector error correction model.FindingsThe empirical results indicate that educational attainment proxied by gross enrolment ratio at secondary level of education negatively affects unemployment rate in long run as well as in short run. However, public expenditure on education is ineffective in influencing both educational attainment and unemployment rate.Originality/valueThe study is the first empirical effort to identify the causal nexus among public expenditure on education, educational attainment and unemployment in the context of India.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0396

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Impact of Disagregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis

Cited by 22 publications

References 14 publications

Teknolojik Büyüme ve Eğitim Harcamalarının İşsizlik Üzerine Etkisi: Panel ARDL-PMG Yaklaşımından Kanıtlar

Teknolojik Büyüme ve Eğitim Harcamalarının İşsizlik Üzerine Etkisi: Panel ARDL-PMG Yaklaşımından Kanıtlar

Impact of Disaggregated Public Expenditure on Unemployment Rate of Selected African Countries: A Panel Dynamic Analysis Approach

Public expenditure on education, educational attainment and unemployment nexus in India: an empirical investigation

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