A Dynamic Panel Analysis of Unemployment Determinants in African Economies

Ali Mohamed Ali Mahmoud; Mayar Abdelwhab Roshdy; Mohamed Ibrahim Rashed

doi:doi:10.11648/j.ijefm.20261403.12

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A Dynamic Panel Analysis of Unemployment Determinants in African Economies

Ali Mohamed Ali Mahmoud

, Mayar Abdelwhab Roshdy^*

, Mohamed Ibrahim Rashed

Published in International Journal of Economics, Finance and Management Sciences (Volume 14, Issue 3)

Received: 2 May 2026 Accepted: 15 May 2026 Published: 26 May 2026

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Abstract

Unemployment represents one of the most pressing economic challenges confronting countries worldwide, It affects not only developing countries but also developed countries. However, the factors influencing employment outcomes vary across regions, and African countries exhibit distinctive structural characteristics that shape their labor markets. The lack of consensus in the literature regarding the key determinants of unemployment in Africa, combined with the relative scarcity of empirical studies, makes it difficult to design effective policy responses. Therefore, This study seeks to identify and quantify the main economic factors influencing unemployment in African countries over the period 2001–2023. The analysis covers 34 countries and employs several panel data techniques, including Pooled OLS, Fixed Effects (FEM), Random Effects (REM), and the Dynamic Generalized Method of Moments (difference GMM). The investigation focuses on four principal economic determinants: Gross Domestic Product (GDP), inflation (INF), foreign direct investment (FDI), and the share of wage and salaried workers (WAGE). The study relied on the results of estimating the generalized dynamic Moments method, and The empirical findings reveal a negative relationship between unemployment and each of these variables. Among them, GDP exerts the strongest effect in reducing unemployment, followed by the share of wage and salaried workers, FDI, and inflation.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 14, Issue 3)
DOI	10.11648/j.ijefm.20261403.12
Page(s)	195-207
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2026. Published by Science Publishing Group

Keywords

Unemployment, GDP, Inflation, FDI, Wage and Salaried Workers, Africa, GMM

References

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APA Style

Mahmoud, A. M. A., Roshdy, M. A., Rashed, M. I. (2026). A Dynamic Panel Analysis of Unemployment Determinants in African Economies. International Journal of Economics, Finance and Management Sciences, 14(3), 195-207. https://doi.org/10.11648/j.ijefm.20261403.12

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ACS Style

Mahmoud, A. M. A.; Roshdy, M. A.; Rashed, M. I. A Dynamic Panel Analysis of Unemployment Determinants in African Economies. Int. J. Econ. Finance Manag. Sci. 2026, 14(3), 195-207. doi: 10.11648/j.ijefm.20261403.12

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AMA Style

Mahmoud AMA, Roshdy MA, Rashed MI. A Dynamic Panel Analysis of Unemployment Determinants in African Economies. Int J Econ Finance Manag Sci. 2026;14(3):195-207. doi: 10.11648/j.ijefm.20261403.12

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@article{10.11648/j.ijefm.20261403.12,
  author = {Ali Mohamed Ali Mahmoud and Mayar Abdelwhab Roshdy and Mohamed Ibrahim Rashed},
  title = {A Dynamic Panel Analysis of Unemployment Determinants in African Economies},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {14},
  number = {3},
  pages = {195-207},
  doi = {10.11648/j.ijefm.20261403.12},
  url = {https://doi.org/10.11648/j.ijefm.20261403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20261403.12},
  abstract = {Unemployment represents one of the most pressing economic challenges confronting countries worldwide, It affects not only developing countries but also developed countries. However, the factors influencing employment outcomes vary across regions, and African countries exhibit distinctive structural characteristics that shape their labor markets. The lack of consensus in the literature regarding the key determinants of unemployment in Africa, combined with the relative scarcity of empirical studies, makes it difficult to design effective policy responses. Therefore, This study seeks to identify and quantify the main economic factors influencing unemployment in African countries over the period 2001–2023. The analysis covers 34 countries and employs several panel data techniques, including Pooled OLS, Fixed Effects (FEM), Random Effects (REM), and the Dynamic Generalized Method of Moments (difference GMM). The investigation focuses on four principal economic determinants: Gross Domestic Product (GDP), inflation (INF), foreign direct investment (FDI), and the share of wage and salaried workers (WAGE). The study relied on the results of estimating the generalized dynamic Moments method, and The empirical findings reveal a negative relationship between unemployment and each of these variables. Among them, GDP exerts the strongest effect in reducing unemployment, followed by the share of wage and salaried workers, FDI, and inflation.},
 year = {2026}
}

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TY  - JOUR
T1  - A Dynamic Panel Analysis of Unemployment Determinants in African Economies
AU  - Ali Mohamed Ali Mahmoud
AU  - Mayar Abdelwhab Roshdy
AU  - Mohamed Ibrahim Rashed
Y1  - 2026/05/26
PY  - 2026
N1  - https://doi.org/10.11648/j.ijefm.20261403.12
DO  - 10.11648/j.ijefm.20261403.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 195
EP  - 207
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20261403.12
AB  - Unemployment represents one of the most pressing economic challenges confronting countries worldwide, It affects not only developing countries but also developed countries. However, the factors influencing employment outcomes vary across regions, and African countries exhibit distinctive structural characteristics that shape their labor markets. The lack of consensus in the literature regarding the key determinants of unemployment in Africa, combined with the relative scarcity of empirical studies, makes it difficult to design effective policy responses. Therefore, This study seeks to identify and quantify the main economic factors influencing unemployment in African countries over the period 2001–2023. The analysis covers 34 countries and employs several panel data techniques, including Pooled OLS, Fixed Effects (FEM), Random Effects (REM), and the Dynamic Generalized Method of Moments (difference GMM). The investigation focuses on four principal economic determinants: Gross Domestic Product (GDP), inflation (INF), foreign direct investment (FDI), and the share of wage and salaried workers (WAGE). The study relied on the results of estimating the generalized dynamic Moments method, and The empirical findings reveal a negative relationship between unemployment and each of these variables. Among them, GDP exerts the strongest effect in reducing unemployment, followed by the share of wage and salaried workers, FDI, and inflation.
VL  - 14
IS  - 3
ER  -

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Author Information

Ali Mohamed Ali Mahmoud

Economics Department, Beni-Suef University, Beni Suef, Egypt

Contact Email

http://orcid.org/0000-0003-4734-6773
Mayar Abdelwhab Roshdy

Economics Department, Beni-Suef University, Beni Suef, Egypt

Contact Email

http://orcid.org/0009-0002-9530-1588
Mohamed Ibrahim Rashed

Economics Department, Beni-Suef University, Beni Suef, Egypt

Contact Email

http://orcid.org/0009-0008-2644-8694

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APA Style

Mahmoud, A. M. A., Roshdy, M. A., Rashed, M. I. (2026). A Dynamic Panel Analysis of Unemployment Determinants in African Economies. International Journal of Economics, Finance and Management Sciences, 14(3), 195-207. https://doi.org/10.11648/j.ijefm.20261403.12

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ACS Style

Mahmoud, A. M. A.; Roshdy, M. A.; Rashed, M. I. A Dynamic Panel Analysis of Unemployment Determinants in African Economies. Int. J. Econ. Finance Manag. Sci. 2026, 14(3), 195-207. doi: 10.11648/j.ijefm.20261403.12

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AMA Style

Mahmoud AMA, Roshdy MA, Rashed MI. A Dynamic Panel Analysis of Unemployment Determinants in African Economies. Int J Econ Finance Manag Sci. 2026;14(3):195-207. doi: 10.11648/j.ijefm.20261403.12

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@article{10.11648/j.ijefm.20261403.12,
  author = {Ali Mohamed Ali Mahmoud and Mayar Abdelwhab Roshdy and Mohamed Ibrahim Rashed},
  title = {A Dynamic Panel Analysis of Unemployment Determinants in African Economies},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {14},
  number = {3},
  pages = {195-207},
  doi = {10.11648/j.ijefm.20261403.12},
  url = {https://doi.org/10.11648/j.ijefm.20261403.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20261403.12},
  abstract = {Unemployment represents one of the most pressing economic challenges confronting countries worldwide, It affects not only developing countries but also developed countries. However, the factors influencing employment outcomes vary across regions, and African countries exhibit distinctive structural characteristics that shape their labor markets. The lack of consensus in the literature regarding the key determinants of unemployment in Africa, combined with the relative scarcity of empirical studies, makes it difficult to design effective policy responses. Therefore, This study seeks to identify and quantify the main economic factors influencing unemployment in African countries over the period 2001–2023. The analysis covers 34 countries and employs several panel data techniques, including Pooled OLS, Fixed Effects (FEM), Random Effects (REM), and the Dynamic Generalized Method of Moments (difference GMM). The investigation focuses on four principal economic determinants: Gross Domestic Product (GDP), inflation (INF), foreign direct investment (FDI), and the share of wage and salaried workers (WAGE). The study relied on the results of estimating the generalized dynamic Moments method, and The empirical findings reveal a negative relationship between unemployment and each of these variables. Among them, GDP exerts the strongest effect in reducing unemployment, followed by the share of wage and salaried workers, FDI, and inflation.},
 year = {2026}
}

Copy | Download

TY  - JOUR
T1  - A Dynamic Panel Analysis of Unemployment Determinants in African Economies
AU  - Ali Mohamed Ali Mahmoud
AU  - Mayar Abdelwhab Roshdy
AU  - Mohamed Ibrahim Rashed
Y1  - 2026/05/26
PY  - 2026
N1  - https://doi.org/10.11648/j.ijefm.20261403.12
DO  - 10.11648/j.ijefm.20261403.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 195
EP  - 207
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20261403.12
AB  - Unemployment represents one of the most pressing economic challenges confronting countries worldwide, It affects not only developing countries but also developed countries. However, the factors influencing employment outcomes vary across regions, and African countries exhibit distinctive structural characteristics that shape their labor markets. The lack of consensus in the literature regarding the key determinants of unemployment in Africa, combined with the relative scarcity of empirical studies, makes it difficult to design effective policy responses. Therefore, This study seeks to identify and quantify the main economic factors influencing unemployment in African countries over the period 2001–2023. The analysis covers 34 countries and employs several panel data techniques, including Pooled OLS, Fixed Effects (FEM), Random Effects (REM), and the Dynamic Generalized Method of Moments (difference GMM). The investigation focuses on four principal economic determinants: Gross Domestic Product (GDP), inflation (INF), foreign direct investment (FDI), and the share of wage and salaried workers (WAGE). The study relied on the results of estimating the generalized dynamic Moments method, and The empirical findings reveal a negative relationship between unemployment and each of these variables. Among them, GDP exerts the strongest effect in reducing unemployment, followed by the share of wage and salaried workers, FDI, and inflation.
VL  - 14
IS  - 3
ER  -

Copy | Download