The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)

Youth unemployment is one of the most critical challenges facing Arab countries, due to its undesirable economic, political, and social impacts. In an essential aspect of this problem, economic literature indicates the insufficiency of the capital needed to create employment opportunities. Therefore...

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Main Authors: Mahmoud Al-Tatani, Mufeed Almula-Dhanoon
Format: Article
Language:Arabic
Published: College of Administration and Economics 2025-06-01
Series:تنمیة الرافدین
Subjects:
Online Access:https://tanmiyat.uomosul.edu.iq/article_187777_f051cf9c7b5261f2be89c7b9638af897.pdf
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author Mahmoud Al-Tatani
Mufeed Almula-Dhanoon
author_facet Mahmoud Al-Tatani
Mufeed Almula-Dhanoon
author_sort Mahmoud Al-Tatani
collection DOAJ
description Youth unemployment is one of the most critical challenges facing Arab countries, due to its undesirable economic, political, and social impacts. In an essential aspect of this problem, economic literature indicates the insufficiency of the capital needed to create employment opportunities. Therefore, one of the available ways to generate jobs in these countries is to bring in foreign financing to bridge the gap between savings and investment. This research aims to demonstrate how funding for foreign countries contributes to preparing the appropriate ground for the growth of employment opportunities in Arab countries. The study covered eight Arab countries for the period 1996-2021. The data were collected from their sources in the official publications of the World Bank. The research used the PMG ARDL method for panel data. It concluded that foreign loans are the primary catalyst for job creation and employment. In contrast, foreign direct investment hinders youth employment, and foreign aid does not create opportunities for youth employment in Arab countries. One of the most important recommendations is to pay attention to the sectoral distribution of foreign direct investment and not to limit investment to the energy sectors that provide employment—directing foreign loans to infrastructure and other productive industries that provide job opportunities—attracting unconditional development aid that contributes to youth employment, and linking education outcomes with actual market needs.
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spelling doaj-art-8a18b8a4dcad45eb898e896109fbad2e2025-08-20T02:40:17ZaraCollege of Administration and Economicsتنمیة الرافدین1609-591X2664-276X2025-06-014414616918410.33899/tanra.2024.155459.1434187777The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)Mahmoud Al-Tatani0Mufeed Almula-Dhanoon1Department of Economics, College of Administration and Economics, University of Mosul, Mosul, IraqDepartment of Economics, College of Administration and Economics, University of Mosul, Mosul, IraqYouth unemployment is one of the most critical challenges facing Arab countries, due to its undesirable economic, political, and social impacts. In an essential aspect of this problem, economic literature indicates the insufficiency of the capital needed to create employment opportunities. Therefore, one of the available ways to generate jobs in these countries is to bring in foreign financing to bridge the gap between savings and investment. This research aims to demonstrate how funding for foreign countries contributes to preparing the appropriate ground for the growth of employment opportunities in Arab countries. The study covered eight Arab countries for the period 1996-2021. The data were collected from their sources in the official publications of the World Bank. The research used the PMG ARDL method for panel data. It concluded that foreign loans are the primary catalyst for job creation and employment. In contrast, foreign direct investment hinders youth employment, and foreign aid does not create opportunities for youth employment in Arab countries. One of the most important recommendations is to pay attention to the sectoral distribution of foreign direct investment and not to limit investment to the energy sectors that provide employment—directing foreign loans to infrastructure and other productive industries that provide job opportunities—attracting unconditional development aid that contributes to youth employment, and linking education outcomes with actual market needs.https://tanmiyat.uomosul.edu.iq/article_187777_f051cf9c7b5261f2be89c7b9638af897.pdfyouth employmentforeign direct investmentforeign loansdevelopment aidarab countries
spellingShingle Mahmoud Al-Tatani
Mufeed Almula-Dhanoon
The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
تنمیة الرافدین
youth employment
foreign direct investment
foreign loans
development aid
arab countries
title The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
title_full The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
title_fullStr The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
title_full_unstemmed The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
title_short The Impact of External Finance on Youth Employment in Arab Countries for the Period (1996-2021)
title_sort impact of external finance on youth employment in arab countries for the period 1996 2021
topic youth employment
foreign direct investment
foreign loans
development aid
arab countries
url https://tanmiyat.uomosul.edu.iq/article_187777_f051cf9c7b5261f2be89c7b9638af897.pdf
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AT mahmoudaltatani impactofexternalfinanceonyouthemploymentinarabcountriesfortheperiod19962021
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