The Impact of ICT Use and Trade Openness on Youth Unemployment in ASEAN: Opportunity or Challenge

Tripitono Adi Prabowo, Alvin Sugeng Prasetyo

Abstract


This study investigates the effects of Information and Communication
Technology and trade openness on youth unemployment in ASEAN countries from 2000 to 2023. Using panel FMOLS, the results show internet usage and mobile subscriptions have significant negative effects on youth unemployment, indicating that ICT expansion
offers substantial opportunities to reduce joblessness among the youth by enhancing access to labor markets, education, and entrepreneurship. Conversely, trade openness exhibits a small but statistically significant positive effect on youth unemployment,
suggesting a structural challenge where trade liberalization may not benefit young job seekers equally, possibly due to skill mismatches or capital-intensive import patterns. Meanwhile, fixed broadband subscriptions show a strong positive association with
unemployment, which may reflect a digital divide or unequal ICT infrastructure development. These findings imply that while ICT is an opportunity for inclusive youth employment, trade openness must be accompanied by labor market reforms and skill development to prevent exclusion.

Keywords: ICT, Youth Unemployment, Trade Openness, Panel FMOLS

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References


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