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How Investment Does Affect Unemployment in a Developing Economy

Author

Listed:
  • Anowor Oluchukwu F.*

    (Department of Economics, Godfrey Okoye University, Enugu, Nigeria)

  • Uwakwe Queendaline Chinyere

    (Department of Economics, Godfrey Okoye University, Enugu, Nigeria)

  • Chikwendu Nneka Francisca

    (Ph.D Student, University of Nigeria Nsukka, Enugu State, Nigeria)

Abstract

Thoroughly going through studies on unemployment tends to submit that investment, despite its strong empirical connection with unemployment, seemed to be relegated and ignored as a key variable behind solving unemployment threats. This study estimating a dynamic model with error correction was able to expound with empirical evidence using data from Nigeria between 1980 and 2017 that investment is capable of creating opportunities for employment of idle resources thus reducing the level of unemployment in a developing economy. Hence a justification for the assumption of the “Two-Gap model†that filling Saving-Investment gap will boost employment conditions. Recommendation therefore demands that attentions should be channeled towards investment (especially private investments) to ensure that available resources are attractive enough to attract both local and foreign investors at any given opportunity.

Suggested Citation

  • Anowor Oluchukwu F.* & Uwakwe Queendaline Chinyere & Chikwendu Nneka Francisca, 2019. "How Investment Does Affect Unemployment in a Developing Economy," Sumerianz Journal of Economics and Finance, Sumerianz Publication, vol. 2(7), pages 82-88, 07-2019.
    • Handle: RePEc:sum:sjefsm:2019:p:82-88
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    References listed on IDEAS

    as
    1. Okorie, George Chisom & Anowor, Oluchukwu F., 2017. "Empirical Appraisal of Poverty-Unemployment Relationship in Nigeria," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(6), pages 91-97, 06-2017.
    2. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
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    4. Syed Zia Abbas Rizvi & Muhammad Nishat, 2009. "The Impact of Foreign Direct Investment on Employment Opportunities: Panel Data Analysis: Empirical Evidence from Pakistan, India and China," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 841-851.
    5. Joshua Abor & Simon Harvey, 2008. "Foreign direct investment and employment: host country experience," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(2), pages 213-225.
    6. Ron Smith & Gylfi Zoega, 2009. "Keynes, investment, unemployment and expectations," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(4), pages 427-444.
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    Cited by:

    1. Adhitya Agri Putra & D.P. Emrinaldi Nur & Ferdy Putra, 2021. "Oil Price Crisis and Bankruptcy Risk," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 7-13.

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