THE IMPACT OF UNEMPLOYMENT ON NIGERIAN ECONOMY (1980-2010)

 

 

ABSTRACT. 

The term unemployment can be defined as a situation whereby those who are willing and 

able to work do not find job. This is mostly seen among greduates of various institutions of 

learning especially in underdeveloped nation like Nigeria. The study was designed to 

investigate the impact on unemployment on Nigeria economy (1980-2010). The research 

focuses on determining the causes and effects of unemployment and how the problem of 

unemployment in Nigeria will be reduced to a minimal level or even eradicated. It focuses on 

this objective: to determine the relationship between unemployment and economic growth in 

Nigeria (GDP).The method of analysis used in testing the hypothesis is the t-test, f-test 

e.t.c.Data for the study was obtained from the Central Bank of Nigeria statistical bulletin. 

The major findings were that unemployment has a negative effect on the gross domestic 

product (GDP) of the Nigerian economy. Some suggestions and policy recommendations 

were made based on the findings 

 

TABLE OF CONTENT 

Title page- - - - - - - - - -i 

DEDICATION- - - - - - - - -ii 

ACKNOWLEDGEMENT- - - - - - - -iii 

ABSTRACT. - - - - - - - - -iv 

TABLE OF CONTENT- - - - - - - -v 

CHAPTER ONE 

1.0 INTRODUCTION- - - - - - -1 

1.1 BACKGROUND OF THE STUDY- - - - -1 

1.2    STATEMENT OF THE PROBLEM- - - - -4 

1.3    RESEARCH QUESTIONS.- - - - - -5 

1.4    OBJECTIVE OF THE STUDY- - - - - -5 

1.5    RESEARCH HYPOTHESIS- - - - - -5 

1.6 SIGNIFICANCE OF THE STUDY- - - - -5 

1.7 SCOPE AND LIMITATIONS OF THE STUDY- - -6 

CHAPTER TWO 

2.0    LITERATURE REVIEW- - - - - -7 

2.1    THEORETICAL FRAMEWORK- - - - -7 

2.2     THEORIES OF UNEMPLOYMENT- - - - -8 

 

2.2.2    CLASSICAL THEORY OF UNEMPLOYMENT- -8 

2.2.3    KEYNESIAN THEORY OF UNEMPLOYMENT- -9 

2.2.4    EFFICIENCY WAGE THEORY- - - - -11 

2.2.5    THE SEARCH THEORY- - - - - -12 

2.2.6    THE INSIDER- OUTSIDER THEORY- - - -13 

2.3      EMPERICAL LITERATURE- - - - - -13 

2.4 LIMITATIONS OF THE PREVIOUS STUDIES - - -20 

CHAPTER THREE 

3.0      METHODOLOGY- - - - - - -21 

3.1      THE MODEL- - - - - - - -21 

3.2       MODEL SPECIFICATION.- - - - - -21 

3.3        ESTIMATION TECHNIQUES AND RESULT  

 EVALUATION.- - - - - - - -23 

3.3.2    THE ECONOMIC  CRITERIA- - - - -23 

3.3.3     THE STATISTICAL CRITERIA- - - - -24 

3.3.4    ECONOMETRIC TESTS.- - - - - -25 

3.4     NATURE AND SOURCE OF DATA- - - -26 

 

3.5     ECONOMETRIC SOFTWARE PACKAGE- - -26 

CHAPTER FOUR 

4.0 PRESENTATION AND ANALYSIS OF RESULTS - -27 

4.1 PRESENTATION OF RESULT- - - - -27 

4.2 RESULT INTERPRETATION- - - - -28 

4.2.1 ANALYSIS OF RESULT BASED ON ECONOMIC  

 CRITERIA- - - - - - - - -28 

4.2.2: ANALYSIS BASED ON STATISTICAL CRITERIA - -29 

4.2.3: THE F-STATISTICS TEST -  - - - -31 

4.3 ECONOMETRICS TEST ( 2ND ORDER TEST) - - -32 

CHAPTER FIVE 

5.0 SUMMARY OF FINDINGS, POLICY RECOMMENDATION  

 AND CONCLUSION- - - - - - -36 

5.1 SUMMARY- - - - - - - -36 

5.2 POLICY RECOMMENDATION- - - - -38 

5.3 CONCLUSION- - - - - - - -39 

BIBLIOGRAPHY- - - - - - - - -40