Impact of Inflation on Unemployment in Nigeria (1985-2019): A Non-Linear Approach

1
Felix Emmanuel Dodo
Felix Emmanuel Dodo
2
Moukhtar Muhammad Idris
Moukhtar Muhammad Idris
1 Department of Economics and Development studies, Federal University Dustinma, Katsina State,

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This study examines the impact of inflation on unemployment in Nigeria from 1985 to 2019.In analyzing the data, nonlinear autoregressive distributive lag (NARDL) was employed. The result of the nonlinear ARDL shows that in the short-run inflation (positive) has a negative and significant effect on unemployment while inflation (negative) has a positive and significant impact on unemployment. Similarly, in the long run, inflation (positive) has a negative and significant effect on unemployment. The study concludes that there is a piece of empirical evidence for the existence of the nonlinear Phillips curve in Nigeria, within the period of the study. It is recommended that the government should reduce the positive rise in price by implementing policies that encourage production. An increase in agricultural production for example increases the level of employment which has great potential to boost food supply and reduce the level of inflation and unemployment in the economy. In addition, the study identifies the benefits and inherent potentials in natural resources in Nigeria that can be harnessed to address the problem of inflation and unemployment.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Felix Emmanuel Dodo. 2026. \u201cImpact of Inflation on Unemployment in Nigeria (1985-2019): A Non-Linear Approach\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 22 (GJMBR Volume 22 Issue C2): .

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High-quality research on inflation and economic growth in Nigeria from 1985-2019.
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GJMBR Volume 22 Issue C2
Pg. 19- 28
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: DDC Code: 050 LCC Code: HF1625
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April 21, 2022

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English

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This study examines the impact of inflation on unemployment in Nigeria from 1985 to 2019.In analyzing the data, nonlinear autoregressive distributive lag (NARDL) was employed. The result of the nonlinear ARDL shows that in the short-run inflation (positive) has a negative and significant effect on unemployment while inflation (negative) has a positive and significant impact on unemployment. Similarly, in the long run, inflation (positive) has a negative and significant effect on unemployment. The study concludes that there is a piece of empirical evidence for the existence of the nonlinear Phillips curve in Nigeria, within the period of the study. It is recommended that the government should reduce the positive rise in price by implementing policies that encourage production. An increase in agricultural production for example increases the level of employment which has great potential to boost food supply and reduce the level of inflation and unemployment in the economy. In addition, the study identifies the benefits and inherent potentials in natural resources in Nigeria that can be harnessed to address the problem of inflation and unemployment.

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Impact of Inflation on Unemployment in Nigeria (1985-2019): A Non-Linear Approach

Felix Emmanuel Dodo
Felix Emmanuel Dodo Department of Economics and Development studies, Federal University Dustinma, Katsina State,
Moukhtar Muhammad Idris
Moukhtar Muhammad Idris

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