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A Critical Assessment of the Dynamic Interrelationships Between Poverty, Unemployment and Economic Growth in Nigeria

Magdalene Chinyere Stanley, PhD Candidate

Abstract

This study investigates the dynamic interrelationships between poverty, unemployment, and economic growth in Nigeria from 1980 to 2023. Utilizing a comprehensive econometric approach, including unit root and cointegration tests, and an error correction mechanism (ECM), the research examines how poverty and unemployment influence economic growth and how these variables interact in both the short run and long run. The findings reveal that, in the long-run equilibrium there is relationship between poverty, unemployment, and economic growth. In the short run, the findings reveal that poverty and unemployment have negative and significant impact on economic growth in Nigeria. The study concludes that while poverty reduction is crucial, it must be coupled with strategic interventions in unemployment to foster sustained economic growth. The study therefore recommends that government and private sector collaboration should focus on developing industries with high employment potential and investing in vocational training and skills development to match the needs of the labour market.

Keywords

PovertyUnemploymentEconomic GrowthCointegration AnalysisSustainable DevelopmentMacro-economic Policies.

References

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