Abstract
This study investigates the impact of economic recession on the Nigerian populace. Secondary data were used in this study, the data were collected from CBN statistical bulletin also data were also gathered from journals and textbook that are related to the research topic. The overall significance of the regression is tested using Fisher’s statistics. In this study the calculated F* value of 0.629415 is significant at 69%. The result however, show that linear relationship exist between the dependent and the independent variables of the model. The evidence established that the independent explanatory variables have individual and combine impact of economic recession and populace in Nigeria. There is significant relationship between economic recession and populace in Nigeria. The finding of this study was from the test of the formulated hypothesis which the result has it that economic recession have statistically significant impact on the Nigerian populace. How recession
CHAPTER ONE
INTRODUCTION
1.1     ÂÂÂ
BACKGROUND TO THE STUDY
Recently
in Nigeria, the CBN and the Finance Minister have told Nigerians that the
nation is in an economic recession, it is very important that the impact of
this recession on the Nigerian populace is well understood. The causes can be
well understood if the definition of an economic recession is revisited. An
Economic Recession is defined as a significant decline in economic
activity spread across the economy, lasting more than a few months, normally
visible in real Gross Domestic Products, real income, employment, industrial
production, and wholesale-retail sales.(US National Bureau of Economic
Research).
Generally
in economics, a recession is a negative economic growth for two consecutive
quarters. It is also a business cycle contraction which results in a general
slowdown in economic activity (Merriam-Webster Online Dictionary, 2008).
Macroeconomic indicators such as GDP (gross domestic product), investment
spending, capacity utilization, household income, business profits, and
inflation fall, while bankruptcies and the unemployment rate rise.
Recessions
generally occur when there is a widespread drop in spending (an adverse demand
shock). This may be triggered by various events, such as a financial crisis, an
external trade shock, an adverse supply shock or the bursting of an economic
bubble. Governments usually respond to recessions by adopting expansionary
macroeconomic policies, such as increasing money supply, increasing government
spending and decreasing taxation.
A
recession has many attributes that can occur simultaneously and includes
declines in component measures of economic activity (GDP) such as consumption,
investment, government spending, and net export activity. These summary
measures reflect underlying drivers such as employment levels and skills,
household savings rates, corporate investment decisions, interest rates,
demographics, and government policies.
A
researcher, Koo (2009) wrote that under ideal conditions, a country