Does Philips Relations Really Exist in Nigeria? Empirical Evidence
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Date
2013
Authors
Ojapinwa, T.V
Esan, F
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
The paper examines the existence and the stability of Phillips relations for Nigeria, using time series data from
1970 to 2010. Graphical, Augmented Dickey Fuller and Phi lip Peron unit root tests were employed to check for
stationarity. ARDL and DOLS general to specific approaches to cointegration have been used to explore the
Phi lips relations and ECM to understand short run dynamics. The estimates shows that relation between the
change in inflation rate and the unemployment rate is theoretically negative in the short run-a low
unemployment rate leads to an increase in the inflation rate and therefore an acceleration of the price level however,the relation became non existence in the long run with positive relationship between inflation and
unemployment signifying stagflation. Meanwhile, recursive residual, CUSUM and CUSUMsq tests confirm a
stable Philips relation.
Description
Staff Publication
Keywords
Phillips Curve , Dynamic model , ADF , Co integration, , DOLS, , Nigeria
Citation
Ojapinwa, T.V and Esan, F (2013) Does Philips Relations Really Exist in Nigeria? Empirical Evidence. International Journal of Economics and Finance, Vol. 5,(9).