YOUTH UNEMPLOYMENT AND ECONOMIC GROWTH IN THE EU: A PANEL DATA ANALYSIS

This paper utilizes country-specific time series data over the period 1990-2017 and Autoregressive Distributive Lag (ARDL) model to estimate the relationship between and human capital development in Nigeria. The specific objectives focused on the impacts of official development assistance (ODA), broad-based grants and technical cooperation grants on public investments in education and healthcare. The Phillips-Perron unit root test results reveal that the variables are mixed integrated with evidence of levels and first difference stationarity. The mixed order of the integration in the series necessitated the application of ARDL bounds test for cointegration and the results indicate that the variables in each of the models have long run relationship. Findings from the estimated ARDL models reveal that lagged values ODA exert significant positive impact on public investment in education in the short run. Both the first and third lag of broad-based grant has significant negative relationship with public investment in education in the short run. The long run result revealed that ODA and technical cooperation grants have significant positive relationship with public investment in education. 1 percent increase in ODA and technical cooperation grants increases public investment in education by 4.289 percent and 0.829 percent respectively. It was further observed that the contemporaneous value of ODA has positive relationship with public healthcare investment in the short run. 1 percent increase in ODA inflow increases public healthcare investment by 1.099 percent. Additionally, there is more than proportionate increase in public investment in healthcare to the tune of 3.179 percent following 1 percent increase in ODA in the long run. Therefore, it is recommended among others that policy makers and donor countries/agencies should prioritize the education sector in the disbursement of foreign aid with a view to achieving the fourth Sustainable Development Goal (SDG) which is to ensure inclusive and quality education for all and promote lifelong learning. Keywords: Human development, education, healthcare, ODA, grants, ARDL and Nigeria. DOI : 10.7176/JESD/10-7-05 Publication date : April 30 th 2019

This paper studies the impact on public education spending of social democratic participation in government. By means of a pooled time-series analysis of spending in OECD democracies, it is shown that social democrats have increased public spending primarily on higher education. This finding is at odds with simple class-based models of partisan preferences (Boix) that predict a preference for non-tertiary education. As an alternative, the notion of a ‘new politics of public investment in education’ (Iversen) is presented. From this perspective, political parties are not merely transmission belts for the economic interests of social classes, but use policies and spending strategically to attract and consolidate voter groups. By increasing public investment in tertiary education, social democrats cater to their core electoral constituencies (for example, by expanding enrolment) and, at the same time, new middle-class constituencies to escape electoral dilemmas and reforge the cross-class alliance with the middle class.

Based on cross-section data worldwide and time series data in China, the essay is intended to make an analysis of the factors which have impacts on the ratio of public investment in education by using econometric models and then the future ratio may be predicted. Conclusions are as follows. First, the proportion of fiscal revenue to GDP (gross domestic products) is the most significant variable to predict the variance in the ratio of public investment in education in China. Second, experience in middle-income countries should be given top priority when international comparison is made. Third, the ratio of public investment in education in China will be close to 4% in 2010, and reach 4.4%–4.5% in 2020.

In our study, “the ratio of public education expenditure to gross domestic product” was selected as an index to value a country's educational investment level, the public investment in education data of more than 41 countries from 2003 to 2012 years were compared. Based on the compared data, using the regression analysis method, we forecast the public investment in education of the world countries in the next five years, we found that national economic development, national policy, developmental of science and technology and social contribution all would influence the public investment in education of the countries in the world.

Numeracy skills of adults within and across 12 different countries in 2011 are strongly associated with the accumulated public investments in education received by these adults during their schooling. This paper confirms existing evidence that the timing of educational investments is important, with early investments playing the most fundamental role. Investment in primary education is associated with higher numeracy scores for those who went on to continue their education. Higher investments in tertiary education are needed in order to fully realize the benefit of the investments in primary school. Family background is a decisive factor in relation to numeracy skills of these adults, in line with all available evidence. Adults who received higher public investment in primary education were more likely to complete secondary school and attain tertiary education. This refutes earlier studies indicating that the amount of financial resources available for education may not be that important for the development of competences.

As youth unemployment has been gradually increasing over the years, it is crucial to investigate which economic indicators that significantly contributed in affecting the Malaysia’s youth unemployment rate. In this study, 30 annual data observations from 1991 until 2020 were used to investigate the empirical relationship between youth unemployment rate (YUR) and gross domestic product (GDP), foreign direct investment (FDI), inflation rate (INFR), gross domestic savings (GDS) and trade (TRD) through multiple linear regression analysis using the ordinary least square method. It is hypothesised that these selected macroeconomic determinants have an effect in influencing the Malaysia’s unemployment amongst youth. The results showed that there is positive significant relationship between youth unemployment rate and trade. Whereas, negative significant relationship was found between youth unemployment rate and the GDP as well as GDS. In contrary, there is no significant relationship exists between YUR with FDI and inflation rate.

The chapter undertakes an analysis of public investment in education in Sri Lanka. Several dimensions of education benefits are examined within an econometric framework. These include the returns to education investment, the association between education and economic welfare, inter-generational benefits of investment in education and the promotion of gender equity, and the relationship between education and poverty reduction. The economic and social benefits of education are shown to be high. Next, several dimensions of public investment in education are analyzed. These cover the time trend of education investment, international comparisons of investment in education, and the pattern and composition of education expenditure. Over the period of the study public education expenditure is shown to have been low. The negative consequences of low investment in human capital is discussed. This is followed by an analysis of the institutional framework for the delivery of education services, and the incentives for performance in the system. The paper then studies the equity of public investment in education, which is shown to be high. The analysis concludes by recommending increased public investment in education, as it both yields strong economic and social benefits and enhances equity.

Exploring the Factors Associated with Unemployment Rate

The Balkan region has proved to be a controversial territory. Through a long history and many controversies, the area rose to a popular destination. Common and uncommon elements make it a unique destination. Tourism has provided a sustainable source of revenue, as in every destination. Public investments are an important element of every activity to flourish and to bring private investments. Through public investments in infrastructure, superstructure, and education, we can provide a better tourist experience. In our paper, we discuss 5 countries of the region, Greece, Serbia, Bulgaria, Montenegro, and the Republic of North Macedonia. All of these destinations drew the attention of other countries and investment institutions like China and Russia. To take a look at public investments and tourism development, we compare core national accounts like the Gross Domestic Product (G.D.P.), Gross Capital Formation (G.C.F.), Gross Fixed Capital Formation (G.F.C.F.), and the inbound tourism at under investigation countries. Data indicate that there was a slowdown in each country’s economy during COVID-19 but then the production increased (Gross Domestic Product (GDP)). The Gross Capital Formation (G.C.F.) has a stable rate for the first years and then increases for each country. Data for the Gross Capital Formation (G.C.F.) for the tourism industry exist only for Bulgaria and show a decrease and a negative Gross Capital Formation (G.C.F.) indication that assets must have been sold. Data for the Gross Capital Formation (G.C.F.) for the transport equipment and total construction have fluctuations without extreme increases or decreases, showing a stable rate of asset accumulation. The findings from the research conclude that till COVID-19 all the economies had a stable rate of growth, and the decrease in tourism activity had a small impact on the decrease of Gross Domestic Product (GDP), except Bulgaria all the other economies slowed down during COVID era, Gross Fixed Capital Formation (G.F.C.F.) for Montenegro and North Macedonia remained stable for the period under study in contrast of the rest countries that were exhibiting a rise from time to time, the general Gross Capital Formation (G.C.F.) accounts always indicate growth in contrast to sectional accounts as they the total accumulated investments or production. Finally, there is insufficient data for the Gross Fixed Capital Formation (G.F.C.F.) for hospitality and tourism which does not allow the researchers to make any assumption with robust data for either the investments or the capital that occurred in other to be invested in the future.

This research investigates youth unemployment dynamics in ASEAN-5 emerging economies using a macroeconomic framework. Employing the panel Autoregressive Distributed Lag (ARDL) methodology, it examines the effects of Gross Domestic Product (GDP), inflation rate, population growth and Foreign Direct Investment (FDI) on youth unemployment rates. Empirical results reveal that GDP and inflation significantly influence youth unemployment over the long term. This highlights the interplay between economic expansion and youth employment prospects. Conversely, neither population growth nor FDI significantly impacts youth unemployment. This suggests that increasing population or attracting foreign investments alone may not directly translate to better employment opportunities for the youth. Instead, robust economic growth and stable inflation rates are crucial. These findings underscore the need for ASEAN-5 policymakers to develop strategies fostering economic growth and controlling inflation to mitigate its adverse effects on youth employment. The research provides insights into how targeted economic policies can better address youth unemployment challenges, creating a conducive environment for job creation and economic stability, ultimately benefiting the youth workforce.

Youth unemployment is a problem in Africa such that young people face almost double the unemployment rate as adults. With the booming population on the rise, youth unemployment can turn into a major catastrophe in the continent if not addressed. This study presents empirical evidence on how income inequality accelerates the problem. The study uses panel data from 42 African countries spanning 29years from 1991 to 2020. The dependent variable is youth unemployment, and the independent variable is income inequality. The control variables are gross domestic product (GDP) per capita, population growth, political stability, foreign direct investment, gross capital formation, and political stability. The study employs the Generalized Method of Moment (GMM) model for estimations. The results imply that income inequality positively impacts African youth unemployment, which varies across different income levels. Therefore, measures must be formulated to combat income inequality, such as increasing productivity among small-scale farmers, robust social protection programs, minimum wages, and better access to financial services for young people on the continent.

Public investment in education and training occupies an important proportion in Vietnam public budget, approximately 20%, equivalent to 5% GDP. Public investment in education and training has many positive benefits and impact on the economy and society by contributing to economic growth, by improving the national productivity, people’s qualification and intellectual level well as reducing unemployment, poverty in a country. On the basis of an empirical analysis in Vietnam, this paper propose several relevant recommendation for Vietnam government to improve the performance of public investment in education and training by making contribution to ensure suitable investment structure as well as uphold important role of education and training to the development of the economy and society.

Despite its significance in policymaking and theory, empirical work on external returns to education has not been fruitful, and most studies focus on developed countries. This paper discusses external returns to education in China, an important developing economy. Using longitudinal data from the China Health and Nutrition Survey, we estimate a fixed-effects instrumental variables model and find positive returns of about 10 to 14 percent. Negligible returns are found for urban, female, and highly educated workers, and returns are positive and statistically significant for rural, male, and poorly educated workers. This suggests that China should increase public investment in education and target rural areas and poorly educated workers. Gender differences in the external returns to education may also imply that China should make more efforts to enhance the capacity of “networking” and competitiveness for women.

Xiaolan Fu: This paper examines external returns to education in China using household survey data from the China Health and Nutrition Survey. It finds positive returns of about 10 to 14 percent, especially for rural, male, and poorly educated workers,whereas returns for urban, female, and highly educated workers were negligible. The paper argues that China should increase public investment in education and target it more at rural areas and poorly educated workers.

How public education investment and advanced human capital structure affect regional innovation: A spatial econometric analysis from the perspective of innovation value chain