Urbanization and Unemployment on the Nigerian Economy

Filed in Current Projects, Economics Project Topic by on October 20, 2020

Urbanization and Unemployment on the Nigerian Economy

ABSTRACT

This research project examined the effect of urbanization and unemployment on the Nigerian economy from 1980 – 2015. Using Ordinary Least Square (OLS) method. Various statistical test such as R2 square, F – test and T-test was used in evaluating the parameter estimates.

The empirical findings of the study revealed that urbanization has a significant negative relationship with unemployment in Nigeria and inflation rate has a negative but insignificant relationship with unemployment rate in Nigeria. This can be done through intensive campaign about birth control.

The study therefore recommended that in other to reduce and curb the menace of unemployment in Nigeria, rapid urbanization of the rural areas should be pursued by the government so as to open up such areas to industrial activities and through it reduce unemployment.

INTRODUCTION

The rate of urbanization is increasing in both developed and developing countries. However, rapid urbanization, particularly the growth of large cities and the associated problems of unemployment, poverty, inadequate health care, poor sanitation, urban slums and environmental degradation pose a formidable challenge in developing countries.

Available statistics shows that, more than half of the world’s population lives in urban area at the end of 2010 from 49% (3.2billion) in 2008. The same report shows that figure is likely to rise to 60% (4.9billion) by 2030 (UN 2011).

According to the UN state of the world population 2007 report, the majority of the people worldwide will be living in towns or cities, for the first time in history;

this is referred to as the arrival of the “urban millennium” or the “tipping point”. In regards to the future trends, it is estimated that 93% of urban growth will occur in developing nations, with 80% of urban growth occurring in Asia and Africa.

REFERENCES

Aase, A. (2003). Urbanization in Africa. NTNU, Trondheim. Paper only available within the university.

Bello, V. A. (2011). The Impact of Urban Crime on Property Values, Nigeria. Bridging the Gap between Cultures. A symposium  held in Marrakech, Morocco. 18-22 May 2011

Berger,  D.G. (1965). Economic Development In A New Perspective: Existential Minima And Substantive Rationality.  Kyklos international review for social sciences. 18(1):49-79

Fadogomi (1992). Urban Unemployment and Economic Growth in Africa. Oxford Economic Papers, New Series, Vol. 20, No. 2 (Jul., 1968), pp. 250-274. Oxford University Press

Musa, Y.H; Istifanus,H. S and Vosanka I.P (2012). Contributions of Unemployed Youths to Agriculture in Sardauna LocaL Government Area of Taraba State. Nigeria. www.fao.org/docrep/013/i16830.pdf

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