Interaction effect of institutional quality on the relationship between economic factors and unemployment in Sub-Saharan Africa

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Published: Apr 9, 2024
DOI: https://doi.org/10.53790/ajmss.v5i1.96
Keywords:
economics growth, institutional quality, unemployment , SSA

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Babatunde Binuyo
Babcock University, Ogun state, Nigeria
Olalekan B. Aworinde
Babcock University, Ogun state, Nigeria
Joseph O. Ajibola
Babcock University, Ogun state, Nigeria

Abstract

The unemployment rate in Sub-Saharan Africa (SSA) has been steadily increasing over the years. This rise may be attributed to weak institutional quality. Although governments in SSA countries have adopted several policies to improve institutional quality, unemployment still remains a critical problem in SSA. Several studies on the determinants of unemployment have failed to consider the impact of institutional quality on unemployment. The study employed an ex-post facto research design to examine the determinants of unemployment and the role of institutional quality in SSA. Based on data availability, panel data between 1996 and 2021 from 24 selected countries were used for the analysis. Data were analyzed using the Dynamic Panel Autoregressive Regressive Distributed Lag. The study adopted a 5% level of statistical significance. Findings indicated the existence of long-run relationships among the variables. The study concluded that institutional quality affected unemployment in SSA. The study recommended that all countries in the region should strengthen their institutional quality by ensuring political stability and regulatory quality to reduce the rate of unemployment.

Article Details

How to Cite
Binuyo, B., Aworinde, . O. B., & Ajibola, J. O. (2024). Interaction effect of institutional quality on the relationship between economic factors and unemployment in Sub-Saharan Africa. Applied Journal of Economics, Management and Social Sciences, 5(1), 66–78. https://doi.org/10.53790/ajmss.v5i1.96
Issue
Vol. 5 No. 1 (2024): vol12024
Section
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