IDEAS home Printed from https://ideas.repec.org/a/rfa/aefjnl/v2y2015i3p102-109.html
   My bibliography  Save this article

Analysis of the Relationship between Inflation, Unemployment and Economic Growth in Nigeria: 1987-2012

Author

Listed:
  • Mohammed Yelwa
  • Okoroafor O.K.David
  • Awe, Emmanuel Omoniyi

Abstract

This paper provides analysis of the relationship between unemployment, inflation and economic growth in Nigeria: 1987-2012. The study utilizes secondary data to analyze the relationship between unemployment, inflation and economic growth. The methodology used for the study was ordinary least squares. The results confirms that in the long run, interest rate and total public expenditure have significant impact on economic growth in Nigeria, while inflation and unemployment has inverse effects on growth in Nigeria. The possible justification for the inverse effect of inflation on price level is that inflation may not be due to aggregate demand pressure but rather due to hiccups in the supply chain of goods both from the domestic and foreign supply outlets. Empirical deductions also signify the presence of significant feedback from the long run to short run disequilibrium. However, there exists a causal linkage between inflation, unemployment and economic growth in Nigeria. In conclusion, the paper recommended that the government must as a matter of necessity to improve or continue to fine-tune macroeconomic policy instruments to achieve a sustainable and enable environment that will enhance increase in domestic output.

Suggested Citation

  • Mohammed Yelwa & Okoroafor O.K.David & Awe, Emmanuel Omoniyi, 2015. "Analysis of the Relationship between Inflation, Unemployment and Economic Growth in Nigeria: 1987-2012," Applied Economics and Finance, Redfame publishing, vol. 2(3), pages 102-109, August.
    • Handle: RePEc:rfa:aefjnl:v:2:y:2015:i:3:p:102-109
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/aef/article/view/943/886
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/aef/article/view/943
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jamilu SALIHU & Ummi Ibrahim Atah & Muhammad Ahmad Usman, 2024. "The Long-Run Bound Cointegration Influence of Unemployment Rate on the Nigerian Economic Growth," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 11(10), pages 261-271, October.
    2. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2021. "An increase of electricity generation can lead to economic growth in South Africa," MPRA Paper 111018, University Library of Munich, Germany.
    3. Mehboob Ul Hassan & Muhammad Waqas Khalid & Ashar Sultan Kayani, 2016. "Evaluating the Dilemma of Inflation, Poverty and Unemployment," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(2), pages 67-82, June.
    4. Muhammad Murtaza & Muhammad Ayyoub & Aisha Riaz & Riaz Ahmed, 2023. "Examining Linkages between Poverty Alleviation and Macroeconomic Performance in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 665-678.
    5. Nikolaos Dritsakis & Pavlos Stamatiou, 2016. "The Effects of Unemployment on Economic Growth in Greece. An ARDL Bound Test Approach," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(62), pages 53-72, December.
    6. Siyan, Peter & Adegoriola, Adewale E. & Adolphus, James Ademola, 2016. "Unemployment and Inflation: Implication on Poverty Level in Nigeria," MPRA Paper 79765, University Library of Munich, Germany.
    7. Mohammad Subhan & Aqsa Anjum & M. N. Zamir & Dervis Kirikkaleli, 2024. "Do energy, inflation, and financial development stimulate economic welfare in India? Empirical insights from novel dynamic ARDL and KRLS simulations," Economic Change and Restructuring, Springer, vol. 57(4), pages 1-27, August.
    8. Ekpeyong, Paul, 2023. "Econometric Analysis of the impact of inflation, unemployment, and economic growth on poverty reduction: A novel application of Asymmetric technique," MPRA Paper 117762, University Library of Munich, Germany.
    9. Chukwuebuka Bernard Azolibe & Stephen Kelechi Dimnwobi & Chidiebube Peace Uzochukwu-Obi, 2022. "The Determinants of Unemployment Rate in Developing Economies: Does Banking System Credit Matter?," Working Papers 22/044, European Xtramile Centre of African Studies (EXCAS).
    10. Chukwuebuka Bernard Azolibe & Stephen Kelechi Dimnwobi & Chidiebube Peace Uzochukwu-Obi, 2022. "The Determinants of Unemployment Rate in Developing Economies: Does Banking System Credit Matter?," Working Papers of the African Governance and Development Institute. 22/044, African Governance and Development Institute..

    More about this item

    Keywords

    unemployment; inflation and economic growth;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:aefjnl:v:2:y:2015:i:3:p:102-109. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.