Determinants of Youth Unemployment in Arab Countries

Abstract

The research aims to measure the impact of different variables on the youth unemployment rate in the Arab countries. Youth unemployment rates in the Arab countries are the highest in the world, and this requires serious consideration to address it, as it considered a major factor in political instability. The research used the multiple linear regression method and panel data for the period 1990-2019 for ten Arab countries for which the data required for the research were available: Iraq, Algeria, Libya, Sudan, Tunisia, Syria, Jordan, Morocco, Lebanon and Egypt. The analysis included measuring the impact of foreign direct investment FDI, inflation, government spending, population growth, GDP growth, degree of trade openness, and corruption risk index on the youth unemployment rate. It was found that FDI ratio, population growth, and trade openness were negatively affecting youth unemployment rate. While the impact of inflation rate, government spending ratio and corruption risks index (degree of low corruption risk) were positive. No significant effect of economic growth on the youth unemployment rate has been demonstrated in Arab countries.