Estimating the impact of container port throughput on employment: an analysis for African countries with seaports

Abstract

AbstractPorts play a significant role in facilitating international trade and economic development, serving as vital gateways for the movement of goods across the continent and beyond. As global trade volumes continue to rise, efficient port operations hold the potential to not only enhance economic growth but also contribute significantly to job creation across various sectors of the economy. This paper examines the impact of container port throughput on employment in Africa and further tests whether causality runs from employment to container port throughput. To do so, we use a sample of 27 African countries with seaport and data spanning the period from 2010 to 2020 for the analysis. The system- Generalized Method of Moments (SGMM) estimation technique is used as the estimation strategy. We use service, industrial, and total employment percentages of the total population as proxies for employment while annual container throughput measured in Twenty foots Equivalent Units (TEUs) is used as an indicator for port throughput. Based on the empirical results, we establish a positive significant effect of port throughput on employment in Africa. We further show that bidirectional causality exists between port throughput and employment in Africa. Following these findings, we recommend policies that increase port throughput in Africa.