Abstract
Aims: The research paper aims to determine the impact of unemployment caused by covid-19 on Africa’s economic growth. The economy of countries of Africa, such as Nigeria, has remained underdeveloped while there are significant human and natural resources that are not effectively utilized.
Method: The quantitative approach is conducted. As the study is concentrated on Africa, the data is gathered from 20 countries of the continent which represents a sample for the entire countries of Africa. The time frame in which the data is collected is from 1991 and 2020, based on the availability of the dataset. The dataset analysis is conducted through Stata, where the data is determined to be panel data. The OLS regression has been conducted along with testing the issues of autocorrelation and heteroskedasticity along with correlation, descriptive, and regression analysis.
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Economic growth and unemployment have remained a major field of interest for scholars as it allows the researchers to provide suggestions for implementing the relevant economic policies and strategies that can contribute to the economic growth (Soylu, Çakmak and Okur, 2018; Ramzan, 2021; Uğur and Erkal, 2020). According to Soylu, Çakmak and Okur (2018), the most important priority for developed and developing countries is reducing unemployment and achieving a high economic growth rate. The study of Voßemer et al. (2018); Christiano, Trabandt and Walentin (2021) has defined unemployment as a matter of concern and an area for research to determine various solutions for tackling unemployment. Unemployment is considered involuntary and has significant consequences on a person’s health. Moreover, unemployment also has a negative effect on the overall economy as it reduces the production of goods and services and the overall spending. Moreover, Arthur Okun was the leader who examines and evaluated the interconnection between economic growth and unemployment. It has been highlighted in the research study conducted by Abbas, (2014) that as per the views of Arthur Okun if the gross domestic product increases exponentially then the rate of unemployment falls, if the growth of the economy is negative or slow then there will be a rise in the unemployment rate. Moreover, if the growth lines potential then the rates of unemployment remain unchanged.
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