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Trading Off Equality and Employment Gains in Sub-Saharan Africa

Author

Listed:
  • Augustine Arize
  • Chinwe R. Okoyeuzu
  • Augustine Ujunwa
  • Angela Ujunwa
  • Leo-Paul Dana
  • Ebere Ume Kalu

Abstract

This study examines the interaction of trade, inequality, and unemployment in Sub-Saharan Africa (SSA) from 1997 to 2021. Results from the mean group and pooled mean group estimation revealed that international trade explains a 6% rise in inequality and a 43% rise in unemployment. Our findings provide evidence that international trade, as currently structured, is not beneficial to SSA countries, despite the adoption of trade liberalization policies and regional trade agreements (RTAs). We argue that SSA countries could still derive gains from trade if they undertake massive structural reforms that address labor market frictions and skills gaps in the region.

Suggested Citation

  • Augustine Arize & Chinwe R. Okoyeuzu & Augustine Ujunwa & Angela Ujunwa & Leo-Paul Dana & Ebere Ume Kalu, 2024. "Trading Off Equality and Employment Gains in Sub-Saharan Africa," The International Trade Journal, Taylor & Francis Journals, vol. 38(3), pages 300-320, May.
    • Handle: RePEc:taf:uitjxx:v:38:y:2024:i:3:p:300-320
    DOI: 10.1080/08853908.2024.2308292
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