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June 21, 2026Insights into Regional DevelopmentOpen Access

Youth unemployment crisis and foreign direct investment flows in south africa

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Authors

EAEmmanuel Aondongusha AsueUniversity of South AfricaRARafiu Adewale AregbesholaTshwane University of Technology

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Implication

Investigates the link between foreign direct investment and youth unemployment in South Africa, indicating needed policy changes.

Key Points

  • The study examines the relationship between foreign direct investment and youth unemployment in South Africa from 1991 to 2024.
  • Analyzed annual time-series data using Autoregressive Distributed Lag (ARDL) and Nonlinear ARDL models.
  • Tested for both symmetric and asymmetric effects of foreign direct investment on youth unemployment.
  • Confirmed long-run cointegration and performed dynamic multiplier analysis.
  • Long-run analysis shows youth unemployment increases with rising foreign direct investment.
  • Asymmetric analysis indicates positive and negative FDI shocks have different impacts on youth unemployment.
  • Both GDP growth rate and inflation rate are significant factors decreasing youth unemployment.

Cite This Study

Asue et al. (2026) studied this question.

synapsesocial.com/papers/6a377edf24f042ddf4c59d23https://doi.org/10.70132/b5665547825
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The Role of Foreign Direct Investment and Unemployment in South Africa’s Economic Growth2026
  2. 2Foreign direct investment inflows and unemployment dynamics in Africa2026
  3. 3Determinants of foreign direct investment in South Africa: An ARDL bound testing approach2025
  4. 4Analysing the Impact of Foreign Direct Investment on Economic Growth in South Africa: The Role of Political Stability2025 · 2 citations
  5. 5Effect of Chinese outward FDI on youth unemployment in sub-Saharan Africa2024 · 7 citations