Is Nigerian Economy Anti-Philip`S Curved? An Implication for Sustainable Development
Is Nigerian Economy Anti-Philip`S Curved? An Implication for Sustainable Development

Summary/Abstract: This study examined the relationship between unemployment and inflation between 1990 and 2018 with a view to testing the existence or otherwise of Philip`s curve theory in Nigeria. The objective of this study was addressed via the application of Engle and Granger and Error Correction Model approach. The following are the major findings that originated from this work; the speed of adjustment for inflation and unemployment to return to the long run equilibrium state when there is a short run disequilibrium due to shock is 16% on annual basis. The lagged value of unemployment rate is positive in both the short run and the long run. In the same vein, the short run estimate shows a positive relationship between unemployment and inflation in Nigeria, though not statistically significant. This implies that the Nigerian economy is anti-Philip’s curved in the short run. However, the long run relationship between the variables of interest shows the evidence to support the existence of Philip’s Curve theory in Nigeria. Therefore, this study makes these policy recommendations to the policy makers in Nigeria based on its findings: since both inflation and unemployment are macroeconomic problems that could hinder the achievement of sustainable development goal 8- inclusive and sustainable economic growth, full and productive employment and decent work for all, the policy makers in Nigeria should embark on various stabilization policies to address continuous rising in inflation rate and create jobs to address unemployment menace in the country.

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