Employment And Economic Growth In Nigeria: A Bounds Specification

Abstract

The paper examines empirically, whether or not employment impact significantly and positively on  GDP growth in Nigeria over the sample period of thirty-eight years. The newly developed bounds testing approach to co-integration was adopted in the study. The results obtained reveal that both the short-run and long-run growth effects of employment in Nigeria are significant and positive. In particular, the results show that for a one-percentage point increase in employment, 0.568 percent real GDP growth rate is induced in the long-run. Having ascertained the significance of employment in positively influencing economic growth in Nigeria, the study thus recommends a set of policies to the Nigerian  government with a view to enhancing employment and fostering economic growth in  Nigeria.

Key words: Employment, economic growth, Bounds, co-integration, stylized facts