Impact of Exchange Rate on Unemployment in Nigeria

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@article{1709547,
      author = {Livinus Mmaduabuchi Okeke, Ebele Stella Nwokoye},
      title = {Impact of Exchange Rate on Unemployment in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {9},
      number = {1},
      pages = {388-407},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1709547.pdf},
      abstract = {Considering the high unemployment rate, available studies for Nigeria are one-sided as they focused only on aggregate unemployment without considering disaggregating unemployment which could provide areas of focus for the monetary policy authority towards tackling unemployment in Nigeria. This study examines the impact of exchange rate   on disaggregated unemployment rates (youth and adult) in Nigeria.  It employed the autoregressive distributed lag technique and estimation procedures under the framework of the Philips curve theory and Taylor's rule. The data for this study is an annual time series data that covers from 1981 to 2021. The data for the variables were sourced from the Central Bank of Nigeria (CBN) statistical bulletin and the African Development Bank database. The Econometric software for estimation is STATA 17. The results showed a positive and significant impact of real exchange rate on aggregate, youth and adult unemployment in both the long and short run. The (high) exchange rate discourages aggregate demand because it pushes the prices of goods and services high. The findings imply that Nigeria needs an exchange rate appreciation to significantly influence an unemployment rate reduction in the economy. Measures should be taken to appreciate the exchange rate if the unemployment challenges in the country must be tackled. It is necessary to bear in mind that an appreciation of the exchange rate would bring about exchange rate appreciation pressures. But, with foreign exchange interventions, the quantity of money ? the money in circulation could be watched carefully to alleviate the likely appreciation pressures to keep a stable exchange rate.},
      month = {July},
  }