“Effect of Inflation and Unemployment on Economic Growth in Nigeria (1999-2017):- Etika, Peter A

ABSTRACT

This study sets out to empirically investigate effect of inflation and unemployment on CC°" Ze8 1 °VCr C ;vaVS 1 "9 “ 2017 in Ni8eria- The study was conducted with a view t0 m firant the eftC \S an\L ltC! halation and unemployment rates on economic growth, how S18ni , , , ec IS‘ n O1 C1 to achieve the objectives ofthe study, an econometric model wasformulatced based on a modified Okun’s (1962) Model. The growth rate of real GDP was USC . 1C 1C min8 influence of Real GDP values on the rates of inflation and uncmp oym n . 1 mary least square (OLS) method of regression and co-integration tccuuque was use to estimate the data. To eliminate wild swings and overcome the problem °1 spuuous regression o ten associated with non-stationary time series data; stationarity, cointegration, an lagnostic tests were carried out. Our findings from the data analysis show that tieic arc sigm leant negative effects of inflation and unemployment on economic growth as cxplaine y 20.5 (R ). However, it is sad to note that despite government concerted clforts at bringing these twin problems to barest minimum, the economy is still grabbling with these problems and it is therefore recommended that Nigeria needs and should have committed leadership with industrialization drive