Youth Employment and Economic Growth in WAEMU Countries
Thierno Thioune, Chérif Sidy KANE

This paper apprehends the bidirectionalrelation between youth employment and economic growth in the WAEMU countries over the period 1991 to 2015. An empirical analysis with panel data indicates that economic growth rate impacts negatively and in an insignificant wayyouth employment ratio, but this youth employment ratio is not able to significantly boost an economic growthrate. There is therefore the possibility of economic growth without employment in the WAEMU countries. The econometric results show that domestic investment and the current account balance are the most important determinants of job creation among young people. As for youth unemployment rates and the official exchange rate, they act negatively. On the other hand, foreign direct investment, the added value of the agricultural sector in GDP, official development assistance and the rate of inflation have no influence on youth employmentratio. Thus, the results of our estimates show a positive and significant impact of domestic investments and the growth rate of the money supply. In addition, econometric analysis reveals a negative relationship between foreign direct investment and economic growthrate. We found an insignificant influence of youth unemployment rate, trade openness rate, official development assistance, official exchange rate, and the added value of the agricultural sector on the economic growth rate of WAEMU countries.

Full Text: PDF     DOI: 10.15640/jeds.v6n4a14