Effect of Unemployment and Inflation on Economic Growth in South Africa

Sekwati, Dimakatso; Dagume, Mbulaheni Albert

doi:10.32479/ijefi.13447

Cited by 8 publications

(9 citation statements)

References 11 publications

(16 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This indicates that the response variable and the explanatory factors have a long-term relationship. The study's results are consistent with previous studies performed by Mohseni & Jouzaryan (2016), Sekwati & Dagume (2023), and Makaringe & Khobai (2018) and Shahid (2014) which also demonstrate a negative long-term relationship between unemployment, inflation, and GDP growth. In contrast, FDI shows a favourable long-run influence on GDP, which is in line with the outcomes of Wehncke et al (2022) and Raza et al (2021).…”

Section: Resultssupporting

confidence: 92%

“…Economists like Golden Weiser, Hawtrey, and Friedman firmly support the idea that price rises are primarily a monetary phenomenon brought about by an extreme currency supply. Significant investment spending on a large scale, either in the public or private sector, creates surplus demand in the economy that exceeds total output (Sekwati & Dagume, 2023).…”

Section: Inflation Theorymentioning

confidence: 99%

“…Using quarterly data, Sekwati & Dagume (2023) evaluate how inflation and unemployment affected South African's GDP growth between 1994 and 2018. They found that the study's factors were stationary at first difference rather than at level.…”

Section: Empirical Literaturementioning

confidence: 99%

See 2 more Smart Citations

Effect of Unemployment, Inflation and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

Correa

2023

JDE

View full text Add to dashboard Cite

This research explores the influence of unemployment, inflation and FDI on GDP growth from 1991 - 2021. To estimate the model's short-run and long-run phases, the ARDL model was utilized. The Granger causality test, the Error Correction Model (ECM) approach, and the cointegration test were all applied during the investigation. GDP growth, FDI, unemployment, and inflation are among the variables considered. According to the results of the stationarity test, GDP growth and inflation (INF) were stationary at the level, whereas unemployment and FDI were stationary at the first difference. The cointegration test results demonstrated that the variables under consideration had a long-run association. The ECM outcomes also found that, while unemployment and inflation have negative effects on GDP growth, FDI has a positive effect. Finally, the Granger causation analyses showed that none of the variable granger cause the other. The finding suggests that the government should implement policies that manage unemployment and inflation while also encouraging FDI inflows to improve GDP growth.

show abstract

Section: Resultssupporting

confidence: 92%

Section: Inflation Theorymentioning

confidence: 99%

See 1 more Smart Citation

Effect of Unemployment, Inflation and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

Correa

2023

JDE

View full text Add to dashboard Cite

show abstract

“…To combat demand-pull inflation, policymakers can adopt several strategies. One approach is to reduce government spending and implement fiscal policies that curb excessive demand (Sekwati & Dagume, 2023). This can be achieved by reducing public expenditure, increasing taxes, or implementing austerity measures.…”

Section: Strategies To Combat Demand-pull Inflationmentioning

confidence: 99%

Inflation Theory: A Theoretical Review of Demand-Pull and Cost-Push Inflation Effect on Nigeria Economy

E.A.,

A.F.,

M.O.

2023

African Journal of Economics and Sustainable Development

View full text Add to dashboard Cite

Inflation has become a pressing issue in Nigeria, affecting the cost of living and infrastructure development. Despite tight fiscal and monetary measures, inflation continued to rise at unprecedented rates in Nigeria. The present seminar paper aims to provide insight into the theoretical understanding of Demand-pull and Cost-push inflation and explore its causes and effects on the economy and individuals. Using the Desk research method, the researcher explores empirical data from 33 published articles for the study. The empirical literature reviewed found that Demand-pull and cost-push inflation are different and have different causes and effects on individuals and the National economy. It was found that Demand-pull inflation is driven by excess demand, leading to higher prices, while Cost-push inflation is caused by increased production costs, which result in higher prices. It was concluded that Inflation is a complex economic phenomenon that significantly impacts individuals and businesses. Understanding the differences between demand-pull and cost-push inflation is essential for policymakers and economists in formulating strategies to combat inflation and maintain a stable economy. The researcher recommended, amongst others, that developing appropriate policies and addressing the root causes of inflation make it possible to mitigate inflation effects and promote sustainable economic growth.

show abstract

“…Tingkat inflasi yang moderat dapat berbeda-beda di tiap negara, tergantung pada kondisi ekonomi negara tersebut. Inflasi dapat memiliki dampak negatif terhadap pertumbuhan PDB, tergantung pada tingkat inflasinya (Sekwati & Dagume, 2023;Shah et al, 2022;Tien, 2021). Oleh karena itu, negara-negara perlu menjaga tingkat inflasi yang rendah dan stabil untuk mendorong pertumbuhan ekonomi.…”

Section: Inflasi Dan Pertumbuhan Pdbunclassified

Pengaruh penggunaan internet dan variabel makro terhadap PDB lima negara ASEAN

Sidiq,

Rizqi

2023

J.Keb.Ek.U.

View full text Add to dashboard Cite

Purpose – This study aims to analyze the influence of inflation, foreign direct investment, labor force, and internet users on gross domestic product (GDP) growth.Methods – The method used in this study is panel data regression analysis with panel data for 2012-2021.Findings – The results show that inflation and internet users do not influence GDP growth in five ASEAN countries, while FDI and labor force have a positive influence.Implication – ASEAN governments can focus on FDI and the labor force to increase GDP and encourage Internet use for productive activities.Originality – This study contributes to developing more effective economic policies to increase GDP growth in the ASEAN region. AbstrakTujuan – Penelitian ini bertujuan untuk menganalisis pengaruh inflasi, investasi asing langsung, angkatan kerja, dan pengguna internet terhadap pertumbuhan produk domestik bruto (PDB). Metode – Metode yang digunakan dalam penelitian ini adalah analisis regresi data panel dengan data panel tahun 2012-2021. Temuan – Hasil penelitian menunjukkan bahwa inflasi dan pengguna internet tidak memiliki pengaruh terhadap pertumbuhan PDB lima negara ASEAN, sedangkan investasi asing langsung dan angkatan kerja memiliki pengaruh positif. Implikasi – Pemerintah ASEAN dapat fokus pada investasi asing langsung dan angkatan kerja untuk meningkatkan PDB serta mendorong penggunaan internet untuk kegiatan produktif. Orisinalitas – Penelitian ini berkontribusi pada pengembangan kebijakan ekonomi yang lebih efektif untuk meningkatkan pertumbuhan PDB di kawasan ASEAN.

show abstract

Effect of Unemployment and Inflation on Economic Growth in South Africa

Cited by 8 publications

References 11 publications

Effect of Unemployment, Inflation and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

Effect of Unemployment, Inflation and Foreign Direct Investment on Economic Growth in Sub-Saharan Africa

Inflation Theory: A Theoretical Review of Demand-Pull and Cost-Push Inflation Effect on Nigeria Economy

Pengaruh penggunaan internet dan variabel makro terhadap PDB lima negara ASEAN

Contact Info

Product

Resources

About