A Validation of the Phillips Curve Hypothesis in Nigeria: A Quarterly Data-Based Approach

Efayena, Obukohwo Oba and Olele, Hilda Enoh (2020): A Validation of the Phillips Curve Hypothesis in Nigeria: A Quarterly Data-Based Approach.

Abstract

The simultaneous attainment of inflation and unemployment reduction has been pursued vigorously by various government with little or no plausible outcome, leading to the debate of a possible trade-off between inflation and unemployment in an economy. This paper thus attempt to validate the Phillips curve hypothesis in Nigeria. Employing the Generalized Method of Moments (GMM) and Canonical Cointegrating Regression (CCR) methods on quarterly data of inflation and unemployment between 2010 and 2018, the study validated the presence of a Phillips curve in the Nigerian economy. In order to cushion the devastating effects of these macroeconomic misnonal, the study among others, recommends the adoption of policy-mix that hugely leans towards ensuring employment based on the economic stage of Nigeria.

• Item Type: MPRA Paper
• Language: English
• Keywords: Phillips curve, GMM, CCR, inflation, unemployment
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity

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