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A Validation of the Phillips Curve Hypothesis in Nigeria: A Quarterly Data-Based Approach

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  • Efayena, Obukohwo Oba
  • Olele, Hilda Enoh

Abstract

The simultaneous attainment of inflation and unemployment reduction has been pursued vigorously by various government with little or no plausible outcome, leading to the debate of a possible trade-off between inflation and unemployment in an economy. This paper thus attempt to validate the Phillips curve hypothesis in Nigeria. Employing the Generalized Method of Moments (GMM) and Canonical Cointegrating Regression (CCR) methods on quarterly data of inflation and unemployment between 2010 and 2018, the study validated the presence of a Phillips curve in the Nigerian economy. In order to cushion the devastating effects of these macroeconomic misnonal, the study among others, recommends the adoption of policy-mix that hugely leans towards ensuring employment based on the economic stage of Nigeria.

Suggested Citation

  • Efayena, Obukohwo Oba & Olele, Hilda Enoh, 2020. "A Validation of the Phillips Curve Hypothesis in Nigeria: A Quarterly Data-Based Approach," MPRA Paper 98804, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:98804
    as

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    References listed on IDEAS

    as
    1. Tarlok Singh, 2015. "Trade Openness and Economic Growth in Canada: An Evidence from Time-Series Tests," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 15(3), pages 361-407, September.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    4. Anthony Orji & Onyinye .I. Anthony-Orji & Joan C. Okafor, 2015. "Inflation And Unemployment Nexus In Nigeria: Another Test of the Phillips Curve," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(5), pages 766-778, May.
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    Cited by:

    1. Effiong, Ubong Edem & Akpan, Ekomabasi & Ekpe, John Polycarp, 2022. "Testing the Validity of the Inflation-Unemployment Nexus within the West African Monetary Zone," MPRA Paper 119722, University Library of Munich, Germany, revised 08 Aug 2022.
    2. Yakubu EGEDE & Umaru AMINU & Aminu HAMMA & Caroline Iyabo ADEMOLA-JOHN, 2023. "Revisiting the Validity of Phillips Curve in Nigeria: An ARDL Approach," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 8(1), pages 24-34, February.

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    More about this item

    Keywords

    Phillips curve; GMM; CCR; inflation; unemployment;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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