Abstract
This study empirically investigates the effects of macroeconomic disequilibrium on educational development in Nigeria. The study employed time series data between 1980 and 2017. Autoregressive Distributed Lag method of estimation was employed. The result revealed that the variables stationarity test were mixed between the first difference I(I) and level I(0). The cointegration result shows that there exist long run relationship between the variables. The result revealed that Balance of payment, Poverty, Debt rate inflation and unemployment exhibited negative relationship with educational development. The estimation result showed that all explanatory variables account for 88% variation of educational development in Nigeria. It is therefore recommended that government should fast track policies that can stabilize inflation and exchange rate in the country. Also, Policies must be formulated to reduce poverty and unemployment.
Highlights
Developing countries have always been characterized with economic volatility and an uncertain macroeconomic environment
Unit Root Test: Most time series variables are non-stationary and using non-stationary variables in the model might lead to spurious regressions. This necessitate the stationarity test applying the Augumented Dickey-Fuller (ADF) and Phillip Perron methods which is presented in table 4.1 below
This study empirically investigates the effects of macroeconomic disequilibrium on educational development in Nigeria
Summary
Developing countries have always been characterized with economic volatility and an uncertain macroeconomic environment. For low-income countries, macroeconomic instability is of a major concern because it seriously affects the poor and has negative impact on their long-term growth.These macro-economic disequilibrium has negative effect on all sectors including education sector. Oladoyin, (2011) examines the effect of government educational spending and macroeconomic uncertainty on schooling outcomes in Nigeria using the econometric methods of cointegration and error correction mechanism together with the vector auto regression methodology. In the process of analyzing the data to test the research hypothesis and draw valid conclusion, the model regresses the dependent variable (Contribution of Education to Economic Growth (Educational Development)) on the independent variables (Balance of Payment, Poverty rate, Exchange rate, Debt rate, inflation rate and unemployment rate).
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