Unemployment in Africa: A Fractional Integration Approach
Autores
Luis A. Gil-Alaña
Guglielmo Maria Caporale
Tipo
Artículo
Editorial
South African Journal of Economics
Páginas
86, 1, 76-81 (2018) ISI = 0.685
País
South Africa
Fecha
01-11-2017
Resumen

This paper estimates long-memory models to analyse the stochastic behaviour of unemployment in eleven African countries (Botswana, Ethiopia, Ghana, Kenya, Malawi, Mauritius, Nigeria, Senegal, South Africa, Tanzania and Zambia) from the 1960s until 2010. The empirical results provide very strong evidence of lack of mean reversion in all series under examination. This suggests that hysteresis models are the most relevant for the African experience (not surprisingly, given the rigidities in their labour markets). Therefore in such countries shocks hitting the unemployment series will have permanent effects, and policy makers should take appropriate action to reverse the effects of negative shocks.

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