Abstract
In this study, we have empirically examined the impact of unemployment on economic growth in South Africa, using time series data from 1994Q1 to 2017Q4. The study made use of the error correction model in determining the relationship between unemployment and economic growth. In addition to economic growth and unemployment, four control variables were added to the model. These were government expenditure, inflation, investment and household final consumption expenditure. Using the error correction model (ECM), the results of the study reveal that there is a negative relationship between unemployment and economic growth in South Africa. An increase in unemployment in South Africa would reduce the rate of economic growth. Based on the research findings, where unemployment was found to have a negative impact on economic growth in the study country, the South African authorities responsible for economic policy are recommended to formulate and enhance policies that aim at reducing unemployment in the country.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
