IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 11 NO. 3 2025
DOI: 10.56201/ijebm.vol.11.no3.2025.pg203.214

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Unemployment, Inflation and Productivity Nexus; Evidence from Nigeria

Benjamin Olusola Abere, Moses Eshiomue Yerumoh

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Abstract

This study looked at the relationship between the nexus between unemployment, inflation and Productivity growth in Nigeria. Investigating the long-term relationships between productivity growth, unemployment rate, labor input, capital input and inflation rate is the aim of the study. The secondary data needed for the analysis came from the Central Bank of Nigeria (CBN) Statistical Bulletin and the World Bank development indicators. Co-integration and Error Correction Methodology (ECM), was used to estimate the equation. Our research revealed an inverse relationship between productivity growth (Y) and unemployment (UNEM) in the long run while having a positive relationship in the short run. However, labor input (LAB) and productivity growth (Y) both in the short and long run exhibit direct relationship conforming to the a priori expectation. In addition. There is inverse relationship between productivity growth (Y) and capital input in the short run while having a positive relationship in the long run. It shows an inverse relationship between productivity growth (Y) and inflation rate in the long run while having a positive relationship in the short run. Based on the findings, this study recommends that concerted efforts should be made by the government to provide basic infrastructural facilities such as electricity, good road, pipe borne water and so on. So as to increase level of output in all sectors of the economy.

keywords:

Unemployment, Inflation rate, Labor input, Capital input and productivity

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