Empirical Test of Okun’s Law in Nigeria

Authors

  • Basiru Oyeniran Fatai Trade Policy Research and Training Programme, Economics Department, University of Ibadan, Nigeria
  • Abiodun Bankole Department of Economics, University of Ibadan, Nigeria

Keywords:

Okun’s Coefficient, Okun’s Law, Engle granger co-integration, Fully Modified OLS, Regression

Abstract

The paper estimates the Okun’s coefficient, and checks the validity of Okun’s law in Nigeria, using the time series annual data during the period 1980-2008. Engle granger co-integration test and Fully Modified OLS were employed. The empirical evidences show that there is positive coefficient in the Regression, implying that Okun’s law interpretation is not applicable to Nigeria. It was recommended that government and policy makers should employ economic policies that are more oriented to structural changes and reform in labor market.

Downloads

Published

2013-07-01

How to Cite

Fatai, B. O., & Bankole, A. (2013). Empirical Test of Okun’s Law in Nigeria. International Journal of Economic Practices and Theories, 3(3), 227-231. Retrieved from http://ijept.eu/index.php/ijept/article/view/Empirical_Test_of_Okun_Law_in_Nigeria

Issue

Vol. 3 No. 3 (2013)

Section

Articles

License

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).