Macroeconomic Dynamics and Unemployment in Nigeria: The Moderating Role of Government Expenditure

Simple item page
dc.creatorAkhigbe, Eunice O., Urhie, Ese S, Bowale, Ebenezer I.K
dc.date2023
dc.date.accessioned2025-04-15T12:51:38Z
dc.descriptionThis study examines the interactive effect of government expenditure and credit to the private sector as well as inflation and economic growth on unemployment rate in Nigeria. It employed ARDL and annual data from 1991 to 2021. The bounds test of the ARDL specification suggests the presence of cointegration among the variables. Which include unemployment, inflation, economic growth, credit to the private sector and government expenditure. Thus, there is a significant long run relationship between unemployment and the explanatory variables. The long run ARDL shows that economic growth government expenditure (both capital and recurrent) as well as the interaction between government recurrent expenditure and credit to the private sector have negative impact on unemployment. The result confirms the Okun’s law nexus. It also shows that increase in government spending and its interaction with credit to the private sector holds prospects for reducing unemployment rate in Nigeria. On the other hand, inflation, credit to the private sector and its interaction with government capital expenditure have a positive impact on unemployment in Nigeria. Thus, the findings failed to support the Phillips curve hypothesis in Nigeria. The study recommends thatdevelopment financial institutions such as the Bank of Industry (BOI) should be mandated to allocate a higher proportion of their credit to job-creating ventures. Also, the problem of corruption should be addressed in order to enhance the efficiency of government spending.
dc.formatapplication/pdf
dc.identifierhttp://eprints.covenantuniversity.edu.ng/18813/
dc.identifier.urihttps://repository.covenantuniversity.edu.ng/handle/123456789/49459
dc.languageen
dc.subjectHB Economic Theory, HJ Public Finance
dc.titleMacroeconomic Dynamics and Unemployment in Nigeria: The Moderating Role of Government Expenditure
dc.typeArticle

Files

Original bundle

Now showing 1 - 1 of 1
No Thumbnail Available
Name:
EUNICE PAPER 2 GOVE EXPENDITURE CORRESPONDENT.pdf
Size:
718.5 KB
Format:
Adobe Portable Document Format
Download

Collections

EPrint