THE IMPACT OF UNEMPLOYMENT ON ECONOMIC GROWTH IN NIGERIA (1970-2010)

ABSTRACT

The term unemployment can be defined as an economics condition

marked by the fact that individual actively seeking jobs remain

unhired. Unemployment is expressed as a percentage of the total

available work force. The level of unemployment varies with

economics conditions and other circumstances. This is mostly seen in

graduate of various institutions of learning especially in under

developed nations like Nigeria. The study was designed to investigate

the impact of unemployment on economics growth in Nigeria of 41

years (1970-2010). The research focuses on determining the cause

and impacts 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 is toa determine the

relationship between unemployment and economic growth in Nigeria

(GDP). The method of analysis used in testing the hypothesis is the

hypothesis is the T-test, F-test etc. the major findings was that

unemployment has a negative impact on the gross domestic product

(GDP) of the Nigeria economy. Some suggestions and policy

recommendations were made based on the findings.

TABLE OF CONTENT

Title page i

Approval page ii

Dedication iii

Acknowledgement iv

Abstract v

Table of contents vi

CHAPTER ONE- INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the problem 6

1.3 Research Question 10

1.4 Objective of the study 10vii

1.5 Statement of hypothesis 11

1.6 Importance of the study 11

1.7 Scope and Limitation of the study 12

CHAPTER TWO

LITERATURE REVIEW

2.1 Theoretical literature 13

2.2 Unemployment and economic growth: Theoretical

framework 21

2.3 Empirical literature 23

CHAPTER THREE

3.0 Methodology 30

3.1 Model Specification 31viii

3.2 Methods of Evaluation 32

3.2.1 Economic Theoretical Test 33

3.2.2 Statistical Critical 34

3.2.3 Econometric critical 36

3.3 Data required source, Transformation 36

CHAPTER FOUR

4.1 Presentation of regression result 38

4.2 Economic Apriori Criteria 40

4.3 Statistical Criteria (First Order Test) 42

4.3.1Coefficient of Multiple Determinants (R2) 42

4.3.2 The student?s T- test 42

4.3.3 F statistic 44ix

4.4 Econometrics Criteria 46

4.4.1 Test for Autocorrelation 46

4.4.2 Normality Test for Residual 48

4.3.3 Test for Heteroscedasticity 49

4.4.4 Test for Multilcollinearity 51

CHAPTER FIVE

SUMMARYOF FINDING CONCLUTION AND RECOMMENDATION

5.1 Summary 53

5.2 Conclusion 54

5.3 Recommendation 57

Bibliography 60

Appendix1