Financial Development, Renewable Energy and Unemployment in North Africa

Abstract

Purpose: The study examined the nexus between financial sector development, renewable energy usage and unemployment (UNEMP) in North African countries. The complementarities between (1) financial development (FIN) and renewable energy usage and (2) economic growth and financial development, and their influence on unemployment was also investigated within the context of North African countries. Design/Methodology/Approach: Panel data (1992-2019) analysis methods such as fixed effects, fully modified ordinary least squares (FMOLS) and pooled ordinary least squares (OLS) were used. Findings: Financial sector development had a significant unemployment reduction influence. Complementarity variables were also noted to have significantly reduced unemployment. Implications/Originality/Value: North African countries should therefore craft, develop and implement financial development, renewable energy usage (RENEW) and economic growth enhancement strategies and policies to increase job creation capacity.