Investment, Monetary Policy Rate, Money supply, Unemployment
This paper examines the link between unemployment and monetary policy in Nigeria using a vector autoregressive (VAR) framework for the period 1983q1 – 2014q1. The paper investigates the effect of structural change by identifying three structural breakpoints and incorporating them into the VAR model as dummy variables. The results show that a positive shock to policy rate raises unemployment over a 10 quarter period. In addition, all the variables used as proxy in the model jointly Granger cause unemployment, implying the existence of a dynamic relationship between monetary policy and unemployment in Nigeria.
CBN Journal of Applied Statistics
Essien, Sunday N.; Manya, Garba A.; Arigo, Mary O.A.; Bassey, Kufre J.; Ogunyinka, Suleiman F.; Ojegwo, Deborah G.; and Ogbuehi, Francisca
"Monetary Policy and Unemployment in Nigeria: Is there a Dynamic Relationship?,"
CBN Journal of Applied Statistics (JAS): Vol. 7:
1, Article 10.
Available at: https://dc.cbn.gov.ng/jas/vol7/iss1/10