Macro-Economic Variables and Economic Growth in Nigeria

  • Jacob Damieibi Isoboye
  • Hyginus I. Ihenetu


The paper evaluated the effect of macro-economic variables on economic growth in Nigeria. Data were collected from CBN statistical bulletin and World Bank for twenty five (25) years. Expost facto design was employed for the study. The data were subjected to unit root test and the result suggested the use of autoregressive and distributed lag model for the analysis. The findings showed that inflation rate, unemployment rate, exchange rate and interest rate had no significant effect on economic growth but the combination of these variables had negative effect on economic growth at 5 percent level of significance during the period of the study. Bound test was also conducted to check the co-integration so that the error of the short run could be corrected at the long run but the result still showed no relationship. Based on the findings, we recommend that government should strive to bring these variables under control in order to grow the economy.Key Words: Economic Growth, Gross Domestic Product, Inflation Rate, Unemployment Rate, Exchange Rate, Interest Rate