Advances in Economics and Business Vol. 4(5), pp. 222 - 244
DOI: 10.13189/aeb.2016.040503
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Impact of Inflation and Unemployment on Economic Growth in Ten (10) Selected Member's States of Economic Community of West Africa States (ECOWAS) (2001-2014)


Gylych Jelilov *, Olanrewaju Joseph Obasa , Abdurahman Isik
Economics Department, Nigerian Turkish Nile University, Nigeria

ABSTRACT

The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment, analyses the effects of inflation in ten (10) selected members of ECOWAS and assess the effects of unemployment in the selected members states. Secondary data obtained from the Member's State National Statistics offices was used for the paper. The study used a model in which inflation and unemployment were the dependent variable and independent variables. The analytical technique used includes Ordinary least square (OLS) technique, F-test. The paper showed that monetary and fiscal policy were effective in the control of the inflation and unemployment since the coefficient of determination (R2 =0.50 or 50% was significant. This was re-confirmed by the F-test value (4.91). The paper recommends a policy redirection to improve output in the ten (10) selected member's states; this will occur by making efforts to increase productivity, which will lead to reduction in unemployment and inflation. To curb the surging rate of unemployment, efforts must be put in place to achieve a labour intensive method of production instead of concentrating on the capital intensive method which will take away jobs that individuals can do. Furthermore, there must be concrete efforts to ensure that the porous borders in the ten (10) selected members states are well managed to increase volume of economic activities among the members' States, which is very pivotal for the reduction of unemployment and inflation; thereby improving the level of local production.

KEYWORDS
ECOWAS, Inflation, Unemployment and Economic Growth

Cite this paper
Gylych Jelilov , Olanrewaju Joseph Obasa , Abdurahman Isik . "Impact of Inflation and Unemployment on Economic Growth in Ten (10) Selected Member's States of Economic Community of West Africa States (ECOWAS) (2001-2014)." Advances in Economics and Business 4.5 (2016) 222 - 244. doi: 10.13189/aeb.2016.040503.