Parametric Modelling of Impact of Unemployment on Economic Growth in Nigeria

Abstract

The aim of this study is to examine the relationship between unemployment figures in Nigeria and gross domestic product using curve fitting regression model. The following models of regression analysis were examined to determine the most suitable one to the data collected: linear, quadratic, cubic, exponential, inverse and logarithmic. Our findings revealed that the pattern of relationship between gross domestic product and unemployment is significant in all the models considered. This implies that there is significant relationship (negative or positive) between unemployment and gross domestic prodution (GDP) in the country. Also, the best model that fits the data in terms of the relationship between the two variables is the linear model because the quadratic variable is not significant in the quadratic model. The order of the next models are logarithmic, inverse and exponential models; the cubic variable and the quadratic variable are not also significant in the cubic model.

Keywords: Unemployment, Domestic, linear, inverse, logarithmic, exponential