Proceedings of the 36th International Academic Conference, London

ANALYSIS OF UNEMPLOYMENT DETERMINANTS IN NORTH AFRICA COUNTRIES, À PANEL DATA CO-INTEGRATION APPROACH

RABAH BELABBAS, RABIA BELLATRECHE, TALAL ZAGHBA

Abstract:

The aim of this study is to determine the Macroeconomic Determinants of unemployment in four countries of North Africa which are: Morocco, Algeria, Tunisia and Egypt. This study has applied the PANEL-VECM Model using annual data from 2000 to 2016 of unemployment rate, growth economic, government expenditure, money supply, oil price and population size, the data were taken From World Bank (WDI). Our results show that there is a long run relationship between unemployment and those macroeconomics variables in north Africa countries. in the short run, unemployment is defined by growth economic with a strong negative effect, but in the long run growth economic affects positively unemployment, but economic policies don’t affect unemployment in the short run, in the long run government expenditure and money supply affect negatively unemployment, but the impact of fiscal policy is more than monetary policy impact, oil price has a negative significant effect in the lag two, in the long run the impact of oil prices on unemployment is positive, population size don’t affect unemployment in the short run, however its impact is positively in the long run.

Keywords: Unemployment, Economic Growth, economic policies, Panel Data Cointegration.

DOI: 10.20472/IAC.2018.036.002

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