Contributions of Some Macroeconomic Variables to the Gross Domestic Product (GDP) in Nigeria

Abstract

Economic growth is the prime priority of macroeconomic policy in any country and Gross Domestic Product (GDP) is considered as a key indicator of economic growth. This study investigates the contributions of some macroeconomic variables to the gross domestic product (GDP) in Nigeria. Inflation rate and unemployment rate were selected to represent the macroeconomic variables for the period from 1990-2021. The study utilized secondary data while multiple regression analysis was conducted to examine the relationships between the variables. Results revealed that GDP has negative correlation with inflation and positive relationship with unemployment. The study therefore concludes that inflation rate has negative influence on the gross domestic product (GDP). The study recommends that government through the relevant agencies should enact policies capable of improving inflation rate in order to reduce the negative effects on the GDP as well as the economy as a whole.