Global Economic Meltdown and the Nigerian Experience: An Empirical Analysis

Abstract

The world economic meltdown is a global phenomena and topical issue that affected both developed and developing economy of the world. It has reveal various implications for both economies in terms of closures of companies, loss of jobs, crash of share prices, among others such in USA and Nigeria. The main objective is paper is to examine macroeconomics variables that are affected by global economic meltdown and its impacts on Nigerian economy. Empirical analysis reveals that there is massive loss of jobs, fall in the price of stock and shares index low foreign direct investment etc. The study used Vector Autoregression model and test the significant relationship between these variables. Empirical investigations reveals that the R² adjusted explain 83percent of the total variation in the model and show a significant relationship.  The findings suggested the need for the government to embark on welfare economy for the benefit of both the rich and poor to cushion the effect of economic meltdown, governments at all levels must deploy the available resources appropriately to solve people’s needs rather than using the resources for political settlements, Nigerian economy must be production based on productive economy directed primary at the rural areas rather than the urban areas to reduce rural urban unemployment, CBN should continuous monitor the level of liquidity in the system so as to maintain a reasonable balance of cash flow in the economic systems among other.

Keywords: Economic Meltdown, Nigeria, Macroeconomic Variables,