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Bullion

Keywords

Technological Innovation, Process Innovation, Product Innovation, Unemployment, ARDL

Abstract

The study examines the effects of technological innovations on unemployment in Nigeria using annual time series data 1980-2018, Autoregressive Distributed Lag and cointegration bound testing approach, Technological innovations was provided by the inflow of FDI; importation of Machinery and Equipment as indicator for process innovation (ETC), Patent represents product innovation, while Total Factor Productivity serves as the exogenous technical progress in line with Solow. The result shows that the coefficient of the inward Foreign Direct Investments (INFDI) is positive (3.85), which is significant at 5%, indicating a strong positive effect of process innovation on Unemployment, Machinery and Equipment was also positive (2.87) and its significant at 5%. However, Patent (1-20) has a negative and significant effect on unemployment. By implication process innovation (with Embodied Technological Change potentially substitutes labour), therefore raises unemployment in Nigeria. There is need to invest more on in-house innovation via R&D activities by, upgrading the learning and skill acquisition standard of the country and also supporting innovative ventures through discoveries, mentorship, provision of capital and macroeconomics stable environment.

Author Bio

The authors are not staff of Central Bank of Nigeria

Publication Title

Bullion

Issue

4

Volume

45

First Page

13

Last Page

24

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