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Rivers State University, Port Harcourt.
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| Title: | Public Infrastructure and Unemployment Rate in Nigeria, 1981-2020 |
| Author(s): | |
| Abstract: | The study examines the impact of public infrastructure on unemployment rate in Nigeria from the period of 1981-2020. The data for the study were mainly secondary data collected from CBN Statistical Bulletin, National Bureau of Statistics (NBS) and World Development Indicator, World Bank. The pre-estimation diagnostic analysis was conducted to determine the nature and characteristic of the data using the descriptive statistics, trend analysis and unit root test. The ARDL Bound Testing Approach was used to test the existence of co-integrating (long-run) relationship between unemployment rate and the independent variables in the model. The findings shows that: the coefficient of the ECM is -0.851185 which is correctly signed indicating the speed of adjustment of about 85.11% to long-run equilibrium from the short run dynamic; the capital expenditure has negative statistical insignificant impact on unemployment rate in Nigeria both in short and long-run period; the expenditure on social services infrastructure has a negative insignificant impact on unemployment rate in the long-run and positive insignificant impact in the short run period in Nigeria; gross capital formation has a negative insignificant impact in the long-run and a negative significant impact on unemployment rate in the short run period in Nigeria; and money supply has a positive insignificant impact on unemployment rate in both short and long-run period. The study recommends as follows: Government should establish a special independent institution that will monitor the process of implementation of its capital expenditure on economic, social and community services infrastructure to ensure effective budget performance on the economy so that the effect can induce the reduction in unemployment rate in Nigeria; the government should diversify the economy from oil by improving the real sector of the economy through channelling its capital expenditure toward improving especially the agricultural and manufacturing sector of the economy that can employ about 65% of the nation's population; the Central Bank of Nigeria should formulate relevant policies so that money supply can have a significant impact on unemployment rate in Nigeria. |
| Keywords: | Unemployment Rate, Capital Expenditure, Expenditure on Social Services, Money Supply, Gross capital formation |
| Journal: | Economic and Social Science Review (ESR) |
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