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)

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 (R 2 =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.

“The Three Evils”: Inflation, Poverty and Unemployment’s Shadow on Economic Progress—A Novel Exploration from the Asymmetric Technique

“…In order to make effective economic decisions, one must understand the economic concepts of inflation and unemployment. Inflation may have an impact on a country's economic growth, employment, investment, income and wealth distribution, and even social and political conditions [6][7][8]. Inflation, on the other hand, refers to increasing prices for goods and services.…”

İşsizlik ve Enflasyonun Ekonomik Büyüme Üzerine Etkisi: 1988-2019 Dönemi Türkiye İncelemesi

“…Çalışmalar incelendiğinde Ademola, Badiru (2016) enflasyon ve işsizliğin ekonomik büyümeyi olumlu etkilediği sonucuna varırken, Berber, Artan (2004), Yapraklı (2007), Karaçor, Özer, Saraç (2011) ve Uslu (2018) ' nun işsizlik ve enflasyonun büyümeyi olumsuz etkilediği sonucuna varmıştır. Enflasyon ve işsizliğin ekonomik büyüme üzerinde bir nedenselliğin olup olmadığını araştıran Jelilov, Obasa, Isik (2016), Shahid (2014), Anning, Tuama, Darko (2017) ve Vermeulen (2017)…”

Economic Stability and Growth: The Case of Turkey

“…In the short term, the influence of inflation on employment is not positive. Jelilov et al (2016) have evaluated the data for the period between years of 2001-2014 to investigate the relation between economic growth, inflation and unemployment for economies in Economic Community of West African States (ECOWAS) such as Nigeria, Benin, Cape Verde Islands, Ivory Coast, Gambia, Ghana, Guinea Bissau, Mali, Nigeria and Senegal (10 countries). As per the outcome of regression analysis for 10 countries obtained by using OLS and by referring to the equation of Law of Okun, it is revealed that unemployment influences economic growth.…”