PRIVATE SECTOR INVESTMENT AND UNEMPLOYMENT IN NIGERIA

OKORIE, George Chisom and Allison, Pat (2020) PRIVATE SECTOR INVESTMENT AND UNEMPLOYMENT IN NIGERIA. GOUni Journal of Faculty of Management and Social Sciences, 9 (1). pp. 71-82. ISSN 2550-7265

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Abstract

This study examines Private sector investment and unemployment in Nigeria. The objective of the research is to ascertain the impact of private sector investment on unemployment in Nigeria. The study utilized time series data obtained from the Central Bank of Nigeria Statistical Bulletin, National Bureau of Statistics, and ILO Data Base with respect to Nigerian labour force. All the variables are subjected to unit roots and co integration tests. Following the variables different orders of integration, the Auto-Regressive Distributed Lag (ARDL) Model was adopted in data analysis. Findings from results showed that private sector investment has negative and significant impact on unemployment in Nigeria both in the short run and in the long run. That is, 1 percent increase in private sector investment leads to 5.5 percent decrease in unemployment in Nigeria in the short run and 17.1 percent decrease in unemployment in Nigeria in the long run. The study recommends that the federal government of Nigeria pursues policies geared at providing enabling environment for private sector investment to expand. Some of such policies include reduction in external debt GDP ratio because of the hypothesized debt overhang effect, increase in public investment in the area of infrastructural development, functional institutions and good governance which will crowd in private sector investment.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 23 Mar 2022 13:27
Last Modified: 23 Mar 2022 13:27
URI: http://eprints.gouni.edu.ng/id/eprint/3499

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