International Journal of Statistics and Applied Mathematics
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International Journal of Statistics and Applied Mathematics

2020, Vol. 5, Issue 6, Part A

Modelling economic determinants of youth unemployment using multiple linear regression: A case study of Kenya


Author(s): Fred Nyamitago Monari, Richard Tinega and Lameck Ondieki Agasa

Abstract: Despite many efforts taken by the government and development partners youth unemployment has remained to be a big problem not only in in Kenya but also in the world (Shem, 2013). This study therefore analyzes the economic determinants of youth unemployment in Kenya from 2000 to 2017 by investigating empirical relationship among youth unemployment, gross domestic product, population and foreign direct investment. The main objective of the study was to come up with a model that can be used to predict the future youth unemployment level. The variables used in the study were population growth, gross domestic product and foreign direct investments. It is hypothesized that these factors have an effect on youth unemployment rate in Kenya’s economy. E-views 8 statistical analysis software and SPSS was used to analyze the data. Both descriptive and inferential statistics were employed in this study. The study used multiple linear regression model to test the economic determinants of youth unemployment. At 5% significance level, empirical results indicate that population, gross domestic product and foreign direct investment are significant economic determinants of youth unemployment in Kenya. The study revealed that a unit change in GDP while holding the other factors constant would lead to an increase in youth unemployment by a factor 0.027, a unit change in FDI while holding the other factors constant would lead to an increase in youth unemployment by a factor 0.034. On the other hand a unit change in population growth will lead to a change in youth unemployment by a factor -1.543. The study recommended that both county and national governments should consider policies that encourage foreign direct investment, increasing GDP through value addition, and using external debt resources for investment.

Pages: 07-11 | Views: 137 | Downloads: 15

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How to cite this article:
Fred Nyamitago Monari, Richard Tinega, Lameck Ondieki Agasa. Modelling economic determinants of youth unemployment using multiple linear regression: A case study of Kenya. Int J Stat Appl Math 2020;5(6):07-11.
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