Volume: Vol. 5 No. 1 | Page: 32-41
Oluwatoyin Christianah AYENI, David Oluwasegun AYENI
Sectoral Employment and Economic Growth in Nigeria
Abstract:

The Nigerian economy is characterized by a paradox of contrast between its vast sectorial resource potential and the worsening unemployment condition, highlighting the need for effective strategies to harness its resources and promote inclusive growth. This study therefore investigates the relationship between output growth and sectoral employment in Nigeria using time series data for the period of 1991 to 2020. The study explores the causal relationship and the interactive effect of agricultural and industrial sector on output growth. Autoregressive Distributed lag (ARDL) model was adopted and the findings revealed that IEMP has positive and statistically significant effect on GDPG, both in the long run and short run. AEMP was also reported to have positive and statistically significant effect on GDPG in the long run, but with weak significance in the short run. However, findings further revealed that interactive effect of AEMP_IEMP on output growth is negative and statistically significant in the short run and long run. The study finds a uni-directional causality (at 10 percent) running from AEMP to GDPG, from IEMP to AEMP and from AEMP_IEMP to AEMP. Based on these findings, we recommend that deliberate efforts should be put in place by the government to improve on the performance of the industrial sector in order to foster the inter-sectoral linkages and improve employment in agricultural sector. In addition to previous strategies adopted to revamp the agricultural sector, new strategies/policies that will make agriculture more appealing to youths should be adopted.

Keywords: Agricultural employment, Industrial employment, output growth, sectoral linkages, ARDL.
Citation: Oluwatoyin Christianah AYENI, David Oluwasegun AYENI (2025). Sectoral Employment and Economic Growth in Nigeria. Nigerian Studies in Economics and Management Sciences, Vol. 5 No. 1, 32-41.
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