Investigating the Link Between Unemployment and Economic Growth

Abstract .........................................................................................................................................8
INTRODUCTION ......................................................................................................................................8
1.1 Background to the study ................................................................................................................8
1.2 Statement of the Problem.............................................................................................................13
1.3 Research Question ........................................................................................................................15
1.4 Objectives of the Study.................................................................................................................15
1.5 Significance of the study.....................................................................................................................15
1.5 Scope and limitation of the study ................................................................................................16
CHAPTER TWO......................................................................................................................................17
LITERATURE REVIEW........................................................................................................................17
2.1 Introduction ........................................................................................................................................17
2.2 Conceptual Framework......................................................................................................................17
2.2.1 Concept of Unemployment..............................................................................................................17
2.2.2 Types of Unemployment..................................................................................................................19
2.2.3 Effects of Unemployment................................................................................................................20
2.2.4 Nigerian Economic Growth ............................................................................................................21
2.2.5 Unemployment Challenges in Nigeria: A Way Forward..............................................................22
2.3 Theoretical Framework......................................................................................................................25
2.3.1 Kenysian Theory..............................................................................................................................25
2.3.2 Classical Theory of Unemployment ...............................................................................................26
2.3.3 Efficiency Wage Model of Unemployment ....................................................................................27
2.4 Review of Empirical Literature........................................................................................................27
CHAPTER THREE..................................................................................................................................32
RESEARCH METHODOLOGY............................................................................................................32
3.1 Introduction ....................................................................................................................................32
3.2 Sources of Data Collection .............................................................................................................32
3.3 Research Design..................................................................................................................................33
3.4 Model Specification ............................................................................................................................333.5. Unit Root Test....................................................................................................................................34
3.5.1 Technique of Data Analysis ............................................................................................................34
3.5.2 ARDL Bound Cointegration Test...................................................................................................35
Auto regressive Distributed Lag Estimates (Short Run Result)..........................................................35
3.6 Post Estimation Test...........................................................................................................................36
3.6.1. Test for Normality ..........................................................................................................................36
3.6.2. Test for Heteroscedasticity.......................................................................................................37
3.6.3. Test for Serial Correlation.............................................................................................................37
3.6.4. Multicollinearity .............................................................................................................................37
CHAPTER FOUR ....................................................................................................................................38
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULT ............................38
4.0 Introduction ........................................................................................................................................38
4.1 Unit Root Test.....................................................................................................................................38
4.2. Error Correction Model Results (Short Run Result)....................................................................39
4.3 ARDL Bounds Test for Co-integration Analysis .............................................................................40
4.4 Estimated Long Run Analysis ...........................................................................................................41
4.5. Test of Hypothesis..............................................................................................................................42
4.6. Residual Diagnostics..........................................................................................................................43
4.6.1 Normality Test .................................................................................................................................43
4.6.2 Auto Corellation ..............................................................................................................................44
4.6.4 Stability............................................................................................................................................45
CHAPTER FIVE......................................................................................................................................47
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS..................................47
5.1 Introduction ........................................................................................................................................47
5.2. Summary ............................................................................................................................................47
5.2. Conclusion...................................................................................................................................48
5.3 Recommendation ................................................................................................................................48
REFERENCE………………………………………………………………………………………………………………………………………44