International Economics

<< N°169

  N°169  
Issue Q2 2022  
Trade shocks and labour market resilience in Sub-Saharan Africa: Does the franc zone response differently?  
Tii N. Nchofoung
 
This paper aims to evaluate the impact of commodity terms of trade (CTOT) shocks on the labour market resilience of Sub-Saharan Africa (SSA) countries, comparing the franc zone countries on the one hand, from the non-franc zone countries on the other hand. The results from the PVAR estimation indicate a positive impact of commodity terms of trade shocks on labour market resilience in SSA countries. This finding holds in both the franc zone and the non-franc zone countries. When robustness is checked through the PSTR, this positive relationship is established to be non-linear. The policy implications of the study invite the policy makers to diversify their economies to limit their heavy reliance on commodities.
Abstract

   
Commodity terms of trade ; Resilience Franc zone ; PVAR ; PSTR ; Keywords
F16 ; F14 ; C23 ; JEL classification
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