We examine the effect of selected macroeconomic variables on unemployment rate in Nigeria using a battery cointegration tests. Results reveals a long run relation between unemployment rate (UNER) and chosen macroeconomic variables. The results of the vector error correction model (VECM) show that real GDP at lag 2 and current exchange rate (EXR) positively affect UNER. Moreover, UNER at lag 1, money supply (M2) at lag 2, EXR at lag 2, current lending rate (LR) and its first lag negatively affects UNER. These results are robust to the satisfaction of various diagnostic tests including residual normality assumption, correction for autocorrelation and white heteroskedasticity.
This paper examined the impact of cluster development in Nnewi, Anambra State of Nigeria. The estimated parsimonious model revealed that capital and labour were significant determinants of sales made by the firms while the cluster dummy variable was insignificant. This insignificance of the cluster dummy variable implied that, in terms of total sales, there was no significant difference between firms in the cluster and firms outside the cluster. For the profit model, we found that capital, labour and the cluster dummy were significant at 1% level. Capital, labour and cluster dummy have a positive relationship with firm profit. The positive coefficient of the cluster dummy variable indicated that the profit of firms in the cluster was significantly higher than that of the firms outside the cluster by about ₦31,050. It was therefore concluded that cluster residency made a significant difference in firm profit and recommended that government should encourage cluster development to accelerate the transformation of the economy.
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