Influence of digital economy on youth unemployment in West Africa

Abstract

The world has progressively become a global village and most economic activities in today’s world embrace digitisation. Digitisation is gradually being appreciated in West Africa but its impact on youth unemployment is relatively unknown. Thus, this study aims at filling this research gap by measuring digitisation in two perspectives; internet penetration rate and mobile telephone subscription. The Im-Pesaran-Shin (IPS) unit-root test affirms that the data are suitable for panel ARDL estimation technique. The estimation establishes that youth unemployment, digitisation and the control variables are cointegrated. This study also reveals that digitisation could reduce youth unemployment in West Africa, both at the short-and long-run but not convincing due to low appreciation of digital technologies. In the short-run, the result is consistent in some countries but not same and robust in some others. Thus, the paper concludes that increasing digitisation would enhance employment opportunities for the youths in the West African region.

Keywords:

• Youth unemployment
• Digitisation
• Panel ARDL
• West Africa
• Digital economy
• Cointegration

JEL Classification Codes:

• J64
• J7
• C5
• L86
• F15

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Nnanna P. Azu

Nnanna P. Azu obtained his PhD in International Trade from Dongbei University of Finance and Economics, Dalian, China. His Research interests include but not limited to trade policies (especially with gravity model), regional integration, foreign direct investments, exchange rates and development economics. He is currently an adjunct lecturer with Department of Economics, Nile University of Nigeria, Abuja, Nigeria.

Gylych Jelivov

Gylych Jelivov is an Associate Professor of Economics and currently the Dean, Faculty of Arts and Social Sciences, Nile university of Nigeria, Abuja, Nigeria. His research interest covers development economics, monetary economics and more.

Osman Nuri Aras

Osman Nuri Aras is a Professor of Economics and currently the Vice Chancellor of Nile university of Nigeria, Abuja, Nigeria. His research interest cut across, international trade, economic integration, international economics and more.

Abdurrahman Isik

Abdurrahman Isik is a Professor of Economics and currently the Deputy Vice Chancellor of Nile university of Nigeria, Abuja, Nigeria. He has done extensive research in international economics.