{"id":4246,"date":"2021-06-13T14:29:44","date_gmt":"2021-06-13T06:29:44","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=4246"},"modified":"2021-09-09T12:29:57","modified_gmt":"2021-09-09T04:29:57","slug":"does-okuns-law-explain-the-relationship-between-economic-growth-and-unemployment-in-nigeria","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/does-okuns-law-explain-the-relationship-between-economic-growth-and-unemployment-in-nigeria\/","title":{"rendered":"Does Okun\u2019s Law Explain the Relationship between Economic Growth and Unemployment in Nigeria?"},"content":{"rendered":"<p><span class=\"fontstyle0\">The issue of unemployment remains the fulcrum of any economic policy because of its attendant effects such as low <\/span><span class=\"fontstyle0\">GDP<\/span><span class=\"fontstyle0\">, increase social ills, etc. Thus, this paper attempts to verify if Okun\u2019s law holds in Nigeria by investigating the dynamic effect of unemployment on economic growth using time-series data for Nigeria covering 22 years from 1996-2017. In examining this matter, this study uses an autoregressive distributed lag (<\/span><span class=\"fontstyle0\">ARDL<\/span><span class=\"fontstyle0\">) approach. The paper sheds light on whether Okun\u2019s law can be applicable outside the <\/span><span class=\"fontstyle0\">US <\/span><span class=\"fontstyle0\">economy to explain the relationship between unemployment and economic growth, with the inclusion of some governance indicators, namely corruption and political instability. The findings revealed that there is a long-run association between economic growth, unemployment, corruption, and political instability. However, unemployment and corruption do not impact economic growth, but only political stability was found to be negatively significant. This outcome implies that in Nigeria, Okun\u2019s law does not explain the connection between unemployment and economic growth. This papaer recommends the government to create employment opportunities through its increase in expenditures in the form of subsidies and loans with less interest, thereby reducing unemployment, increasing productivity, and lastly increasing the growth of the economy.<\/span><\/p>\n","protected":false},"template":"","tags":[637,186,635,638,636],"jel-code":[],"article-type":[1329],"class_list":["entry","author-jem","post-4246","article","type-article","status-publish","tag-corruption","tag-economic-growth","tag-okuns-law","tag-political-instability","tag-unemployment","article-type-normal-article"],"_links":{"self":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/4246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":1,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/4246\/revisions"}],"predecessor-version":[{"id":4256,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article\/4246\/revisions\/4256"}],"wp:attachment":[{"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/media?parent=4246"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/tags?post=4246"},{"taxonomy":"jel-code","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/jel-code?post=4246"},{"taxonomy":"article-type","embeddable":true,"href":"https:\/\/www.ukm.my\/jem\/wp-json\/wp\/v2\/article-type?post=4246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}