Volume 1, Issue 1, September 2017, Page: 22-34
An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach
Hycenth Amakiri Ajie, Department of Economics, Federal University, Wukari, Nigeria
Emmanuel Chukwunonyem Ani, Department of Economics, Federal University, Wukari, Nigeria
Ojiya Emmanuel Ameh, Department of Economics, Federal University, Wukari, Nigeria
Received: May 13, 2017;       Accepted: May 31, 2017;       Published: Jul. 18, 2017
DOI: 10.11648/j.jppa.20170101.13      View  1786      Downloads  112
Abstract
Despite countervailing views and propaganda from government sponsored media agencies, there is a preponderance of evidence that the Nigerian economy is challenged on all fronts by the daily geometric increase in her unemployment figures, hence this study is undertaken to examine the impact of unemployment and inflation on the Nigerian economy between 1981 to 2015. The study adopted an Autoregressive Distributed Lag (ARDL) approach and other econometric tools of analysis to answer the objectives set out in the study. The Augmented Dickey-Fuller, Phillip-Perron Unit Root Test and Bounds Test method of cointegration employed indicates that the series used in the model are all stationary with a unique long run relationship established among the variables. Major findings revealed that unemployment has an insignificant impact on economic growth. The study also established an inverse relationship between inflation and economic growth within the period under reference. Based on the foregoing, the following recommendations among others were made: First, in a bid to control the naira exchange rate since it does have bearing on inflation, the government should put in place an enduring framework to buffet the risk of the domestic producers for them to take innovative roles of developing and manufacturing products that will have competitive advantage in the international markets. This is critical to the realization of a stable inflation rate and self-reliance for Nigeria. Secondly government should revitalize the various ailing industries and establish new ones to encourage massive industrialization. This strategy will create massive jobs for the teeming graduates and reduce the frightening unemployment figures confronting Nigeria.
Keywords
Unemployment, Inflation, Economic Growth, ARDL
To cite this article
Hycenth Amakiri Ajie, Emmanuel Chukwunonyem Ani, Ojiya Emmanuel Ameh, An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach, Journal of Public Policy and Administration  . Vol. 1, No. 1, 2017, pp. 22-34. doi: 10.11648/j.jppa.20170101.13
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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