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Macroeconomic conditions and unemployment in Nigeria

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  • Augustine C Osigwe

    () (Department of Economics and Development Studies, Federal University, Ikwo, Nigeria.)

  • Kenneth O Ahamba

    () (Department of Economics and Development Studies, Federal University, Ikwo, Nigeria.)

Abstract

We examine the effect of selected macroeconomic variables on unemployment rate in Nigeria using a battery cointegration tests. Results reveals a long run relation between unemployment rate (UNER) and chosen macroeconomic variables. The results of the vector error correction model (VECM) show that real GDP at lag 2 and current exchange rate (EXR) positively affect UNER. Moreover, UNER at lag 1, money supply (M2) at lag 2, EXR at lag 2, current lending rate (LR) and its first lag negatively affects UNER. These results are robust to the satisfaction of various diagnostic tests including residual normality assumption, correction for autocorrelation and white heteroskedasticity.

Suggested Citation

  • Augustine C Osigwe & Kenneth O Ahamba, 2016. "Macroeconomic conditions and unemployment in Nigeria," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 4(6), pages 21-28, December.
  • Handle: RePEc:lrc:lareco:v:4:y:2016:i:6:p:21-28
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    Keywords

    Macroeconomic variables; Nigeria; Unemployment.;

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