UNEMPLOYMENT AND DOMESTIC PRODUCTION IN NIGERIA: AN EMPIRICAL EVIDENCE

ABSTRACT

This work is an empirical study on unemployment and domestic production. In an attempt to achieve the aim of the study, the Autoregressive Distributive Lag Analysis was used as this could accommodate time series data with varying levels of stationarity. The data for the study were collected from the Central Bank of Nigeria yearly Statistical Bulletin, International Monetary Fund (IMF) database, World Bank Database and Journals. The data gathered spanned from 1986 to 2018.Cointegration results from the work showed the existence of a long run relationship between unemployment and domestic production. The result showed a negative relationship between unemployment and domestic production in the short run and a positive relationship in the long run. The Granger causality test showed the existence of a unidirectional relationship, running from unemployment to domestic production Thus, level of unemployment can be used to predict future levels of domestic production. Human capital development as well as trade openness showed a positive relationship with domestic production. Based on findings of this work, investment in capital stock, human capital development as well as trade openness is encouraged.