The Effects of some Major Macroeconomic Variables on Unemployment Rate in Nigeria: A Bounds Test Approach

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Agbolade Olumuyiwa
Agbolade Olumuyiwa
2
Are S.O.
Are S.O.
1 The Federal Polytechnic

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Nigeria has been experiencing a high unemployment rate over the years. The main objective of this paper is to investigate the effects of some macroeconomic variables such as; Gross Domestic Product, Treasury bill, and Inflation rate on unemployment rate in Nigeria over the period 2006Q1-2018Q4. The long-run and short-run impacts of the variables were analyzed using the bound testing co-integration. The result shows there is a long-run relationship among the variables. The dynamic error correction was carried out, and the long-run and short-run coefficients were extracted using the ARDL model. The result shows that the Gross Domestic Product has a positive significance on unemployment in the long run. However, in the short-run, only GDP contribute significantly to the unemployment rate. The Granger non-causality shows that Treasury bills do not cause Gross Domestic Product. There is unilateral causality from Treasury bill to the unemployment rate and inflation rate.

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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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Agbolade Olumuyiwa. 2019. \u201cThe Effects of some Major Macroeconomic Variables on Unemployment Rate in Nigeria: A Bounds Test Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 19 (GJHSS Volume 19 Issue E9): .

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GJHSS Volume 19 Issue E9
Pg. 33- 41
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 910199
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December 20, 2019

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English

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Nigeria has been experiencing a high unemployment rate over the years. The main objective of this paper is to investigate the effects of some macroeconomic variables such as; Gross Domestic Product, Treasury bill, and Inflation rate on unemployment rate in Nigeria over the period 2006Q1-2018Q4. The long-run and short-run impacts of the variables were analyzed using the bound testing co-integration. The result shows there is a long-run relationship among the variables. The dynamic error correction was carried out, and the long-run and short-run coefficients were extracted using the ARDL model. The result shows that the Gross Domestic Product has a positive significance on unemployment in the long run. However, in the short-run, only GDP contribute significantly to the unemployment rate. The Granger non-causality shows that Treasury bills do not cause Gross Domestic Product. There is unilateral causality from Treasury bill to the unemployment rate and inflation rate.

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The Effects of some Major Macroeconomic Variables on Unemployment Rate in Nigeria: A Bounds Test Approach

Agbolade Olumuyiwa
Agbolade Olumuyiwa The Federal Polytechnic
Are S.O.
Are S.O.

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