Is There a Trade-Off Between Employment and Economic Growth in Nigeria?

Abstract

The study has investigated the nature of the relationship between employment and economic growth in Nigeria. The study used time series data spanning from 1980 to 2017. First, the augmented dickey –fuller unit root test was conducted on the series and it was discovered that all the variables became stationary after the first difference. Given the uniform order of integration, the Johansen co-integration test was employed and it was found that there is a long-run relationship between GDP growth and employment levels in Nigeria. Using Vector Error Corrections Model, the study found out that there exist a tradeoff between employment and economic growth in Nigeria. The study recommend policies that will enhance productivity in Nigeria. The strategies could be in form of lowering taxes and increasing government spending in the country.

Keywords: Economic growth, Employment, Trade off

DOI: 10.7176/JESD/10-14-10

Publication date:July 31^st 2019