INFLATION AND UNEMPLOYMENT NEXUS IN NIGERIA: ANOTHER TEST OF THE PHILLIP’S CURVE
Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 5
Abstract
This research work examines the inflation and unemployment nexus in Nigeria by testing if the original Phillips curve proposition holds for Nigeria. The study adopted a distributed lag model with data covering the period 1970-2011. The consumer?s price index (a measure of inflation rate), was regressed on unemployment rate, growth rate of money supply, budget deficit, real gross domestic product, interest rate and the lag of current interest rate. The result reveals that unemployment is a significant determinant of inflation and that there is a positive relationship between inflation and unemployment rate in Nigeria. This finding invalidates the original proposition on the Phillips curve hypothesis in Nigeria. The study therefore recommends that the economy should be diversified and appropriate policies should be put in place by Government and the monetary authorities in order to curb the menace of inflation and unemployment and consequently reduce the problem of stagflation in Nigeria. Again, there is a need for strong institutional collaboration in dealing with these two macroeconomic variables; unemployment and inflation as have been recommended in the paper.
Authors and Affiliations
Anthony Orji*| Department of Economics, University of Nigeria, Nsukka, Nigeria, Onyinye . I. Anthony-Orji| C/o Department of Economics, University of Nigeria, Nsukka, Nigeria, Joan C. Okafor| Department of Business Administration and Management, Abia State Polytechnic Aba, Nigeria
Keywords
Related Articles
- EP ID EP2203
- DOI -
- Views 527
- Downloads 43
INVESTIGATING THE ROLE OF OIL PRICES IN THE CONVENTIONAL EKC MODEL: EVIDENCE FROM TURKEY
Being a developing country E-banking opened up tremendous opportunity to the financial sector and economic development of Bangladesh. This paper studies prospects of e-banking in Bangladesh, considering the performance o...
WAGNER’S LAW IN SAUDI ARABIA 1970 - 2012: AN ECONOMETRIC ANALYSIS
Our goal in this paper is to explorethe validity of Wagner’s Law in Saudi Arabia during the period (1970-2012) for real oil GDP and Non-oil GDP.Wagner’s Law investigated that fundamental economic growth is validity to th...
COASIAN THEOREM, PUBLIC DOMAIN, AND PROPERTY RIGHTS PROTECTION
In this paper, the expressions of Coasian Theorem and the concept of public domain are discussed at the beginning. Based on it, this paper derived a mathematic logic about Coasian Theorem. At last, it proves that if the...
FIRM LEVEL JOB CREATION RATES OVER THE BUSINESS CYCLE
We study the evolution and cyclical dependence of the cross sectional distribution of firm level job creation rates from 1975 to 2004 for the Austrian private sector. The share of firms not adjusting has declined over ti...
DO TRADING VOLUME AND BID-ASK SPREAD CONTAIN INFORMATION TO PREDICT STOCK RETURNS? INTRADAY EVIDENCE FROM INDIA
Relying on the mixture of distribution hypothesis (MDH) and the sequential information arrival hypothesis (SIAH), this paper empirically examines the relationship between stock returns, trading volume and bid-ask spread...