Unemployment and Current Account Imbalances in Nigeria

This study explores the link that exists between unemployment and current account imbalances in Nigeria from 1980 to 2014. It adopted the ARDL bounds test approach. The result gave evidence for a long-run relationship between the variables and also revealed a significant and inverse relationship between current account surplus and unemployment. Showing that a 1% increase in current account balances in favour of export will lead to a drop in the unemployment rate by 0.117893%. This, therefore, implies that current account deficit will cause a fall in employment and in turn a rise in the unemployment rate. Consequently, current account deficit leads to wage differentials in favour of the exporting countries as against importing countries, like Nigeria, and as such triggers a high rate of unemployment. We strongly recommend diversification of the country’s export-base which may increase employment opportunities and in turn reduce the unemployment rate. Keywords: Unemployment, Employment, Current Account Balances, Balance of payment, Output growth

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Current Account Imbalances in Sri Lanka and Taiwan: Long-run Adjustment Mechanisms and Policy Reaction

External Imbalances and Policy Constraints in the 1990s ◽

10.1007/978-1-349-22453-1_10 ◽

1992 ◽

pp. 237-261

Author(s):

Maxwell J. Fry ◽

Simon Sosvilla-Rivero ◽

Peter Burridge

Keyword(s):

Sri Lanka ◽

Current Account ◽

Long Run ◽

Current Account Imbalances ◽

Adjustment Mechanisms ◽

Account Imbalances

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Long-Run Drivers of Current Account Imbalances in the EU: The Role of Trade Openness

SSRN Electronic Journal ◽

10.2139/ssrn.2781929 ◽

2016 ◽

Author(s):

Giuseppe Caivano

Keyword(s):

Current Account ◽

Trade Openness ◽

Long Run ◽

Current Account Imbalances ◽

The Eu ◽

Account Imbalances

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Correcting US Imbalances

National Institute Economic Review ◽

10.1177/002795010519200104 ◽

2005 ◽

Vol 192 ◽

pp. 33-39 ◽

Cited By ~ 6

Author(s):

Ali Al-Eyd ◽

Ray Barrell ◽

Olga Pomerantz

Keyword(s):

Exchange Rates ◽

Current Account ◽

Current Account Deficit ◽

The Us ◽

Current Account Imbalances ◽

The Government ◽

Consequent Increase ◽

Account Imbalances

In the January Review discussion of the US current account imbalances, we explored the links between the US current account deficit and exchange rates, and focused on the economic adjustments required to correct the US ‘triple’ deficits. Using NiGEM, we illustrated that a sustained adjustment in the US current account deficit cannot be achieved through a temporary nominal depreciation alone – whether risk or policy driven – but also requires a redressing of the government and household imbalances and a consequent increase in national savings.

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Import Dependency of Exports as a Cause of Current Account Deficit

Central European Review of Economics & Finance ◽

10.24136/ceref.2018.014 ◽

2018 ◽

Vol 25 (3) ◽

pp. 37-49 ◽

Cited By ~ 2

Author(s):

Nalan Terzioglu ◽

Turan Subasat

Keyword(s):

Current Account ◽

Current Account Deficit ◽

Global Value Chains ◽

Policy Option ◽

Persistent Current ◽

Value Chains ◽

Historical Evidence ◽

Important Policy ◽

Current Account Imbalances ◽

Account Imbalances

The rapid increase in import dependency of exports and current account imbalances in many countries over the last two decades led many researchers to argue that they may be correlated and the increase in IDE may be the main cause of current account imbalances. This argument is important because historical evidence suggests that large and persistent current account imbalances often lead to subsequent corrective crisis. If the increase in IDE is a major cause of current account imbalances, reducing it becomes an important policy option to prevent further crisis. While there is a large literature on both global value chains (the main cause of IDE) and current account imbalances, the literature that investigates the link between them is very new and limited. This paper aims to contribute to this limited literature.

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