TO GET THE COMPLETE JOURNAL/THESIS FOR TOPIC BELOW,
CALL: 08168759420, 08068231953
WHATSAPP: 08137701720
EFFECT OF UNEMPLOYMENT AND INFLATION ON ECONOMIC GROWTH IN NIGERIA (1985-2017)
Abstract
This paper studies the effect of unemployment and inflation on the Nigeria economic growth (GDP) from 1985 – 2017. Secondary Data was used, and the relevance of Ordinary Least Square (OLS) technique was also use in determines the effects of unemployment and inflation on GDP. Granger Causality test, was also used to examine the causation between unemployment and inflation on GDP. The results of OLS from the model indicates that unemployment and inflation has an insignificant relationship with GDP which implies that with increase in GDP, cateris paribus inflation rate will increase, so also unemployment rate. The results of the Causality test also suggest that LGDP does not granger causes inflation as indicated in the Probability value (0.0755), while LINF also does not granger causes unemployment as indicated also in the Probability value (0.0593). A major policy implication of this result is that, there has been no effectiveness in terms of monetary policies aimed at tackling or controlling the inflation rate in Nigeria. Furthermore, the rate of inflation and unemployment was too high to the point that it created impediment to investment, rather it scares away investors. Therefore, Policy makers and researchers in Nigeria should intensive effort or adopt a proper monetary and fiscal policy that can reduce the prices of goods and services in order to boost the growth of the economy that can lead to investment, subsequently employment will be followed.
Keywords: Unemployment, Inflation, Economic Growth, Nigeria