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A cross causal analysis of employment and economic growth in Nigeria

Author

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  • Modinat O. Olusoji

    (Centre for Management Development)

Abstract

This paper employs the Toda–Yamamoto Causality Test to investigate the causal relationship between economic growth and employment in Nigeria. Quarterly data from 1991 Q1 to 2013 Q1 was used to carry out the analysis. It was discovered that there is no causality from the Gross Domestic Product (GDP) to employment but there is causality from employment to GDP during the period of analysis. It was concluded that efforts should be geared toward tackling the problem of unemployment in Nigeria by sensitising the population to the windows of opportunities available for job creation while fixing the power supply problems to generate more employment.

Suggested Citation

  • Modinat O. Olusoji, 2016. "A cross causal analysis of employment and economic growth in Nigeria," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(4), pages 553-562, December.
    • Handle: RePEc:spr:ijlaec:v:59:y:2016:i:4:d:10.1007_s41027-017-0072-5
    DOI: 10.1007/s41027-017-0072-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic growth; Employment; Unemployment; Nigeria; Causality; Toda–Yamamoto; GDP; Human Capital; Seemingly Unrelated Regression (SUR);
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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