IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 6 NO. 1 2021

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Economic Recession and Economic Growth in Nigeria from 1980 –2020

Omolua, Roy Oshiokpekhai & Adeyemo, Oyindamola Olajumoke

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Abstract

This study examined the impact of economic recession on economic growth in Nigeria from 1980 to 2020. Inflation rate, unemployment rate and poverty rate were used as independent variables while Gross domestic product (GDP) as dependent variable. Annual time series data on our targeted variables were obtained from secondary sources including the Central Bank of Nigeria annual statistical bulletin, World Bank development indicators (various years). The Eview9 Statistical Software was employed to ineptly analyze the data empirically. The Unit root test shows that Gross domestic product, unemployment rate and poverty rate variables to be evaluated are all stationary after first deference I(1) while inflation rate was stationary at level I(0)The data were analyzed using the Autoregressive distributed lag (ARDL) From the results of the ARDL estimates it was revealed that among others, inflation rate, unemployment rate and poverty rate impact negatively on Gross domestic product. It was found that unemployment rate was statistically significant both in the long run and short run while poverty rate was only statistically significant in the long run. Inflation rate was found to be statistically insignificant in both the long run and short run. The study recommended among others that government encourage investors by creating a conducive atmosphere for investment so as to increase the real gross domestic product. That Nigeria should diversify her economy and reduce over dependence on oil revenue, and as well promote the patronage of locally made goods.

keywords:

Inflation Rate, Unemployment Rate, Poverty Rate and Real Gross Domestic Product.

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