TITLE:
Econometric Analysis of the Impact of Unemployment on Burundi Economic Growth
AUTHORS:
Carmel Niyongabo, Tenglong Zhong
KEYWORDS:
Unemployment, Economic Growth, ARDL, Burundi
JOURNAL NAME:
Journal of Service Science and Management,
Vol.16 No.6,
December
29,
2023
ABSTRACT: Unemployment is one of the major macroeconomic issues confronting
developed countries, particularly developing countries. Unemployment is one of
the macroeconomic issues that Burundi is dealing with. Unemployment is a major
issue that puts young people at risk of exploitation. Using world bank time
series data from 1990 to 2021, this paper investigates the impact of
unemployment on economic growth in Burundi. The dependent variable is GDP,
while the independent variables are unemployment, inflation, FDI, and gross
capital formation. A stationarity test was performed using the Augmented
Dickey-Fuller (ADF) and Phillips-Perron tests, which revealed that some
variables became stationary at the level and others after first differencing.
According to the ARDL model results, unemployment has both short- run and long-run causal
effects on GDP. According to the study, industrialization is highly encouraged
in order to reduce unemployment and promote economic growth in the country. To
foster youth employment by collaborating with the Burundian Diaspora as
trainers and distance mentors. Allow diaspora members to participate in
projects in Burundi that promote youth employment. Adapt entrepreneurship and
employment training strategies for adolescents and youth.