An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: <i>A Bounds Testing Approach</i>

Hycenth Amakiri Ajie; Emmanuel Chukwunonyem Ani; Ojiya Emmanuel Ameh

doi:doi:10.11648/j.jppa.20170101.13

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An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach

Hycenth Amakiri Ajie, Emmanuel Chukwunonyem Ani, Ojiya Emmanuel Ameh

Published in Journal of Public Policy and Administration (Volume 1, Issue 1)

Received: 13 May 2017 Accepted: 31 May 2017 Published: 18 July 2017

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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.

Published in	Journal of Public Policy and Administration (Volume 1, Issue 1)
DOI	10.11648/j.jppa.20170101.13
Page(s)	22-34
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Unemployment, Inflation, Economic Growth, ARDL

References

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APA Style

Hycenth Amakiri Ajie, Emmanuel Chukwunonyem Ani, Ojiya Emmanuel Ameh. (2017). An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach. Journal of Public Policy and Administration, 1(1), 22-34. https://doi.org/10.11648/j.jppa.20170101.13

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ACS Style

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. J. Public Policy Adm. 2017, 1(1), 22-34. doi: 10.11648/j.jppa.20170101.13

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AMA Style

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. J Public Policy Adm. 2017;1(1):22-34. doi: 10.11648/j.jppa.20170101.13

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@article{10.11648/j.jppa.20170101.13,
  author = {Hycenth Amakiri Ajie and Emmanuel Chukwunonyem Ani and Ojiya Emmanuel Ameh},
  title = {An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach},
  journal = {Journal of Public Policy and Administration},
  volume = {1},
  number = {1},
  pages = {22-34},
  doi = {10.11648/j.jppa.20170101.13},
  url = {https://doi.org/10.11648/j.jppa.20170101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20170101.13},
  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.},
 year = {2017}
}

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TY  - JOUR
T1  - An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach
AU  - Hycenth Amakiri Ajie
AU  - Emmanuel Chukwunonyem Ani
AU  - Ojiya Emmanuel Ameh
Y1  - 2017/07/18
PY  - 2017
N1  - https://doi.org/10.11648/j.jppa.20170101.13
DO  - 10.11648/j.jppa.20170101.13
T2  - Journal of Public Policy and Administration
JF  - Journal of Public Policy and Administration
JO  - Journal of Public Policy and Administration
SP  - 22
EP  - 34
PB  - Science Publishing Group
SN  - 2640-2696
UR  - https://doi.org/10.11648/j.jppa.20170101.13
AB  - 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.
VL  - 1
IS  - 1
ER  -

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Author Information

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

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Hycenth Amakiri Ajie, Emmanuel Chukwunonyem Ani, Ojiya Emmanuel Ameh. (2017). An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach. Journal of Public Policy and Administration, 1(1), 22-34. https://doi.org/10.11648/j.jppa.20170101.13

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ACS Style

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. J. Public Policy Adm. 2017, 1(1), 22-34. doi: 10.11648/j.jppa.20170101.13

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AMA Style

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. J Public Policy Adm. 2017;1(1):22-34. doi: 10.11648/j.jppa.20170101.13

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@article{10.11648/j.jppa.20170101.13,
  author = {Hycenth Amakiri Ajie and Emmanuel Chukwunonyem Ani and Ojiya Emmanuel Ameh},
  title = {An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach},
  journal = {Journal of Public Policy and Administration},
  volume = {1},
  number = {1},
  pages = {22-34},
  doi = {10.11648/j.jppa.20170101.13},
  url = {https://doi.org/10.11648/j.jppa.20170101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jppa.20170101.13},
  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.},
 year = {2017}
}

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TY  - JOUR
T1  - An Examination of the Impact of Unemployment and Inflation on the Nigerian Economy: A Bounds Testing Approach
AU  - Hycenth Amakiri Ajie
AU  - Emmanuel Chukwunonyem Ani
AU  - Ojiya Emmanuel Ameh
Y1  - 2017/07/18
PY  - 2017
N1  - https://doi.org/10.11648/j.jppa.20170101.13
DO  - 10.11648/j.jppa.20170101.13
T2  - Journal of Public Policy and Administration
JF  - Journal of Public Policy and Administration
JO  - Journal of Public Policy and Administration
SP  - 22
EP  - 34
PB  - Science Publishing Group
SN  - 2640-2696
UR  - https://doi.org/10.11648/j.jppa.20170101.13
AB  - 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.
VL  - 1
IS  - 1
ER  -

Copy | Download