Federal finance and statistics / Central Bank of Nigeria

Does the Okun's Law Hold in the BRICS Countries and Nigeria?

The unemployment-output nexus is a topical issue in developing countries, particularly with some evidence against the trade-off suggested by Okun’s law. This study, therefore, investigates the validity of Okun’s law in the BRICS countries and Nigeria, based on annual data between 1993 and 2020, using the Panel ARDL model. We validate the Okun’s law with evidence of an inverse relationship between output and unemployment in the BRICS countries and Nigeria. We, therefore, recommend that polic | Keywords: BRICS countries, Okun’s law, panel ARDL, potential output, unemployment