Economic and Financial Review


Central Bank of Nigeria


BRICS countries, Okun’s law, panel ARDL, potential output, unemployment


The unemployment-output nexus is a topical issue in developing countries, particularly with some evidence against the trade-off suggested by Okun’s law. This study, therefore, investigates the validity of Okun’s law in the BRICS countries and Nigeria, based on annual data between 1993 and 2020, using the Panel ARDL model. We validate the Okun’s law with evidence of an inverse relationship between output and unemployment in the BRICS countries and Nigeria. We, therefore, recommend that policymakers should boost both nominal and potential output by fully diversifying the economy to enhance productivity and reduction in the unemployment rate. We also recommend that the BRICS countries and Nigeria should deploy more of their population into technology-driven economic activities such as the information and communication technology (ICT) sub-sector of the economy and productive sectors that are labour intensive such as agriculture to absorb the available labour and boost output and lower unemployment rate.

Author Bio

The authors are staff of the Research Department, Central Bank of Nigeria, Abuja.

Publication Title

CBN Economic and Financial Review





First Page


Last Page



C23, E24, F43, J62, O47

Recommended Citation

Aminu, U., Abel, A., and Garba, A. R. (2022). Does the Okun's Law Hold in the BRICS Countries and Nigeria? CBN Economic and Financial Review, 60(20). 71 - 91.



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