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THE EFFECT OF UNEMPLOYMENT ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

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ABSTRACT
The study was designed to investigate the effect of unemployment on economics growth in Nigeria for a period of 31 years (1980-2010). It focus is to determine the relationship between unemployment and economic growth in Nigeria (GDP).The finding was that unemployment has a positive but insignificant impact on the gross domestic product (GDP) of the Nigeria economy, Despite the fact that the effect of unemployment on economic growth is not significant, its positive coefficient suggest that unemployment rate is also increasing over time, so the study recommends policies reverse this trend. The study included that government should formulate policies that will help in proper check of annual unemployment rate, and its outcome on the effort to reduce it, in order to know how to battle it, the coming year.

TABLE OF CONTENT
Title page – – – – – – – – – – i
Approval page – – – – – – – – – ii
Dedication- – – – – – – – – – iii
Acknowledgement- – – – – – – – – iv
Abstract – – – – – – – – – – v
Table of contents – – – – – – – – – vi
CHAPTER ONE-INTRODUCTION
1.1 Background of the study – – – – – – 1
1.2 Statement of the problem – – – – – – 3
1.3 Research questions – – – – – – – 5
1.4 Objective of the study – – – – – – – 5
1.5 Research hypothesis – – – – – – – 5
1.6 Scope of the study – – – – – – – 6
1.7 Significance of the study – – – – – – 6
vii
CHARTER TWO-LITERATURE REVIEW
2.1 Theoretical literature – – – – – – – 8
2.1.1 The classical theory of unemployment – – – 10
2.1.2 Keynesian theory of unemployment – – – – 12
2.2 The relationship between unemployment and economic
growth – – – – – – – – – – 13
2.3 Empirical literature – – – – – – – 17
CHARTER THREE-METHODOLOGY
3.1 The model– – – – – – – – – 24

3.2 Model specification – – – – – – – 25
3.3 Estimation techniques and result evaluation – – – 26
3.3.1 The economic criteria – – – – – – 27
3.3.2 The statistical criteria – – – – – – 27
3.3.3 Econometric tests – – – – – – – 29
3.4 Nature and sources of data – – – – – – 30
viii
CHAPTER FOUR: DATA PRESENTATION AND INTERPRETATION
OF RESULT
4.1 Presentation of result – – – – – – – 31
4.2 Interpretation of result – – – – – – – 32
4.2.1 Analysis of regression coefficient – – – – 32
4.2.2 Evaluation based on economic apriori expectation-33
4.2.3 Evaluation based on statistical criteria – – – 34
4.3.4 Evaluation based on econometric criteria – – – 37
CHAPTER FIVE: SUMMARY, CONCLUSION AND POLICIES
5.1 Summary of findings – – – – – – – 43
5.2 Conclusion – – – – – – – – – 44
5.3 policy recommendation – – – – – – – 45
Bibliography – – – – – – – – – – 47
Appendix –

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