1. bookVolumen 17 (2022): Edición 1 (April 2022)
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eISSN
2344-5416
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06 Mar 2015
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3 veces al año
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access type Acceso abierto

Modeling the Impacts of MSMEs’ Contributions to GDP and their Constraints on Unemployment: The Case of African’s Most Populous Country

Publicado en línea: 31 May 2022
Volumen & Edición: Volumen 17 (2022) - Edición 1 (April 2022)
Páginas: 154 - 170
Detalles de la revista
License
Formato
Revista
eISSN
2344-5416
Primera edición
06 Mar 2015
Calendario de la edición
3 veces al año
Idiomas
Inglés
Abstract

The activities of micro small and medium-sized enterprises (MSMEs) are crucial to combating the menace of unemployment towards the actualization of the Sustainable Development Goals (SDGs) in African. However, financial constraints and infrastructural deficits are conspicuous issues among the numerous challenges confronting MSMEs’ activities in many developing nations. Hence, this study explores the challenges and the impacts of MSMEs’ contributions to GDP on the unemployment level in Nigeria as Africa’s most populous country. The empirical results from the study using annual time series data (1985-2018) reveal that a rise in MSMEs’ activities vis-à-vis their contributions to GDP in 5 major economic sectors (agriculture, trade, accommodation, manufacturing, and other services) alongside the financial support given to them, have significant impacts on stemming the level of unemployment in the Nigerian economy. Contrastively, the cost of accessing credit by MSMEs significantly exasperates unemployment while the impacts of the level of infrastructural investments by the government were found to be insignificant in reducing unemployment in the country over the reviewed period. In practical terms, the findings suggest that while ensuring adequate provision of financial support to MSMEs, cogent efforts should be concurrently geared toward the implementation of sufficient budgetary allocations for investment in critical infrastructures like electricity, transport, and ICT facilities to boost MSMEs’ activities to proactively address the unemployment menace in Nigeria.

Keywords

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