EFFECT OF INFLATION AND CORRUPTION ON UNEMPLOYMENT IN NIGERIA
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Abstract
It is a stylize fact that rising unemployment rate and inflation in Nigeria
are a disturbing phenomenon. The objective of this study is to examine the
effect of inflation and corruption on unemployment in Nigeria. The study
used quarterly data from 1996 to 2023 and the Autoregressive Distributed
Lag bound testing and error correction model approaches. The findings
confirm a long-run co-integrating relationship among unemployment,
inflation, corruption and associated variables. The results reveal that
inflation and corruption positively influence unemployment in both short
run and long run. Results of the causality tests indicate bidirectional
causality between inflation and unemployment, while there is no causality
between corruption and unemployment. Based on the findings, the study
recommends the implementation of effective anti-corruption measures and
controlling inflation within reasonable limits, in order to stimulate job
creation and reduce unemployment in Nigeria.
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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