The dynamic interactions among youth unemployment, inflation and economic growth in Asean countries
In this research, youth unemployment (YU), economic growth (EG) and inflation (INFLA) in the ASEAN countries of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam is examined empirically from 1996 to 2019. The purpose of this research is...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2023
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| Online Access: | https://eprints.ums.edu.my/id/eprint/39090/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/39090/2/FULLTEXT.pdf |
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| Summary: | In this research, youth unemployment (YU), economic growth (EG) and inflation (INFLA) in the ASEAN countries of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam is examined empirically from 1996 to 2019. The purpose of this research is to investigate the relationship between youth unemployment, economic growth and inflation in ASEAN countries. Additionally, this study examines the causal relationship between youth unemployment, inflation, and economic growth in ASEAN countries. Finally, this research examines the how interaction between youth unemployment, economic growth and inflation in ASEAN countries. The findings of this study reveal that over the long term, the three variables exhibit a correlation, with the result indicating a statistically significant relationship. The result from panel cointegration, Dumitrescu-Hurlin panel Granger Causality test and Multivariate Analysis of Variance found out that economic growth had a considerable negative impact in the long term, with a rise of 1% reducing youth unemployment by 0.14%. Somehow, there was no effect on youth unemployment in the short run. As is the case in ASEAN countries, there was a bidirectional causality relationship among youth unemployment and economic growth as well as between inflation and youth unemployment. However, there is a unidirectional causality moved from inflation to economic growth. Therefore, it can be concluded that government need to take an advance action on economic growth and inflation to lower the youth unemployment in ASEAN countries. Finally, there is interaction between youth unemployment (YU), economic growth and inflation with each other, both youth unemployment and inflation had a significant effect on economic growth of 0.04%. Additionally, inflation had a substantial effect on economic growth and youth unemployment when the p-value was less than 0.5 % (0.036). As a result, it is advised that ASEAN countries adopt policies that are successful and have a positive influence on youth unemployment, inflation and economic growth. This research is intended to contribute to the establishment of more effective youth empowerment policies and the growth of youth employment. |
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