JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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EXTERNAL DEBT AND CORRUPTION ON ECONOMIC DEVELOPMENT IN ECOWAS COUNTRIES
Get PDFThis paper uses the Pooled Mean Group cointegration technique to investigate the relationship among external debt, corruption, and economic development for 16 ECOWAS countries over the period 1996-2022. Our results show that in the long run, external debt and corruption impact economic development positively and negatively. Meanwhile, the short-run dynamic reported a positive nexus among the trio of external debt, corruption, and economic development in the ECOWAS countries. It was also established that the economy would take four years to adjust back to equilibrium based on the error correction mechanism. The study recommends that the governments of ECOWAS countries should address the menace of rising external debt through the adoption of other sources of capital and the issue of corruption be tackled head-on by such penalties that tend to make corruption less attractive
MONEY SUPPLY, EXCHANGE RATE AND OUTPUT GROWTH VOLATILITY IN NIGERIA
Get PDFThe supply of money and the rate at which one currency is exchanged for another can be an important determinant of output growth volatility. The paper used money supply, exchange rate and output growth variables in its analysis. The study used time series data from 1987-2023. After establishing the existence of Autoreggressive Conditional Heteroscedasticity (ARCH) and Generalised Autoreggressive Conditional Heteroscedasticity (GARCH), Generalised Linear Model (GLM) was used to analyse the data. The result shows that the exchange rate has a higher impact on output growth volatility than the money supply. It was recommended that currency sterilization which advocates for slow growth of money supply by keeping the monetary base from expanding when the central bank’s intervention in the foreign exchange market leads to greater holding of international reserves can be a viable policy option
ENERGY DIVERSIFICATION IN AFRICA: THE PANACEA FOR SOLVING THE ENERGY PARADOX
Get PDFThe paper empirically examined energy diversification in Africa. Although Africa is endowed with abundant energy resources, their accessibility, efficiency and affordability are far-fetched. This is paradoxical, a situation of scarcity in the midst of plenty. A cross sectional panel data sourced from World Development Indicators (WDI), International Monetary Bank (IMF) and World Bank were used to examine five selected African countries, one from each region of the continent. In this paper, Gross Domestic Product (GDP) which represents economic growth stood as proxy for Energy diversification – the dependent variable while Renewable Energy (RE), Nonrenewable Energy (NRE), Gross National Expenditure (GNE), Trade Openness (TOP) and Population (POP) were the explanatory variables. The panel estimation techniques employed in this study were the fixed effect model and the Random effect model and thereafter, the Hausman test was performed to ascertain whether to adopt the fixed effect model or the Random effect model. The Hausman test confirmed that the fixed effect model is more preferable. Some of the major findings of the study include that RE & NRE exhibited both positive but insignificant relationship with economic growth while GNE & TOP were both positive and significant. Population however impacted negatively and insignificantly to economic growth in the selected countries. The paper recommended that the government should increase the availability and affordability of abundant RE resources through increased energy diversification
THE EFFECT OF GOVERNMENT EXPENDITURE AND SMALL AND MEDIUM SIZED ENTERPRISES' OUTPUT ON EMPLOYMENT IN NIGERIA
Get PDFThis study investigated the impact of government expenditure and micro and medium enterprises output on employment in Nigeria using the Auto Regressive Distributed Lag model econometric technique. The research design was an analytical approach within the ex-post facto research strategy and the econometric equation is anchored on the Keynesian theory of employment. Secondary data from 1981 to 2022 was collected from The Central Bank of Nigeria, the International Labour Organization, and the World Bank Development Indicators. The unit root test showed that the variables were of mixed order of integration which warranted the use of the Bounds testing approach. The short-run ARDL results for the employment equation show that the estimated long-run coefficients of total government expenditure, output of small and medium-scale enterprises measured by wholesale and retail trade, and human capital development measured by secondary school enrolment were all positive and statistically significant. The study recommended proper channeling of government expenditure into productive economic activities with a direct bearing on the lives of the people. The Government should also encourage and strengthen small-scale enterprises through training and credit support to reduce unemployment. Dedicated funds in specialized funding bodies like the Bank of Industry and Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) should be increased to increase loans to micro and small enterprises (MSEs)
HOW EXCHANGE RATE AND STOCK MARKET VOLATILITIES AFFECT FOREIGN DIRECT INVESTMENT IN NIGERIA: A NON-LINEAR APPROACH
Get PDFThis paper examines how the exchange rate and stock market volatilities affect foreign direct investment (FDI) in Nigeria, using monthly time-series data from 2000 to 2022. The paper applies a Non-linear Autoregressive Distributive Lag (NARDL) method to capture the asymmetric effects of positive and negative shocks from the real exchange rate volatility (XVOL), the stock market volatility (SMVOL), and the real growth domestic product (RGDP) on FDI. The paper finds that there is a long-run cointegration relationship among the variables and that both positive and negative shocks from XVOL and SMVOL have significant negative effects on FDI in the short and long run. In contrast, positive shocks from RGDP have a significant positive effect on FDI in the long run, but an insignificant positive effect in the short run. These results imply that the Nigerian government should stabilise the exchange rate and the stock market to enhance FDI inflows and economic growt
INCLUSIVE GROWTH AND RESOURCE CURSE IN OIL-RICH COUNTRIES OF SUB-SAHARAN AFRICA
Get PDFThis study investigates the impact of natural resource dependence on inclusive growth in oilrich sub-Saharan African countries, addressing the resource curse paradox. The research emphasizes the significance of institutional quality, including regulatory quality, control of corruption, and government effectiveness, in moderating the effects of natural resource exploitation on economic inclusivity. Using the cross-sectional augmented autoregressive distributed lag (CS-ARDL) technique, the study analyzes data from Algeria, Congo Republic, Gabon, Nigeria, South Africa, and Sudan over the period 1991-2022. The findings highlight that natural resource rents and oil resource rents significantly influence inclusive growth, with institutional quality playing a critical role in this relationship. Specifically, the results suggest that weak institutions exacerbate the negative effects of natural resource dependence, leading to increased income inequality and limited economic diversification. Conversely, strong institutional frameworks can mitigate these adverse effects, promoting more equitable economic development. This research provides valuable insights for policymakers and development practitioners, emphasizing the need for robust institutional mechanisms to ensure that natural resource wealth translates into broad-based economic benefits. The study aligns with the UN’s Sustainable Development Goals, particularly those related to poverty reduction, good governance, and inclusive growth. The results underscore the importance of governance reforms and effective policy implementation in harnessing natural resources for sustainable and inclusive development in sub-Saharan Africa
A DSGE APPROACH TO THE ANALYSIS OF MONETARY POLICY AND BUSINESS CYCLES: EVIDENCE FROM SOME SELECTED COUNTRIES
Get PDFThe study examines the role of monetary policy in influencing business cycles in Nigeria, Brazil, and China by estimating a small open sticky-price Dynamic Stochastic General Equilibrium (DSGE) model. The role of monetary policy is sub-divided into anticipated and unanticipated. Using quarterly data from 1986:1 to 2022:4, results show that monetary policy plays an active role in influencing business cycles in the selected countries. Furthermore, both anticipated and unanticipated monetary policies have impacts on macroeconomic variables’ volatilit
ASSESSMENT OF THE CAUSES OF WATER SCARCITY IN MINNA METROPOLITAN AREA OF NIGER, STATE: A NEED FOR SUSTAINABLE DEVELOPMENT
Get PDFThe reasons for water scarcity in any given environment are numerous, and the only way to regulate the excesses of water scarcity is to identify the underlining cause of water scarcity in the society. As a result, the purpose of this research is to investigate the causes of water scarcity in the Minna metropolitan region. Using Taro Yamane’s (1967) formula, the study employs random sampling to distribute 400 questionnaires to the chosen respondents. From the eleven factors assessed using factor analysis, five primary causes of water scarcity were extracted. The collected data was analysed using descriptive statistics, and the inferential statistics were evaluated using the Chi-square test. The study results show that inadequate resources to provide adequate water supply (P-value = .000), inadequate pumping infrastructures (P-value = .000), increasing population (P-value =.000), inaccessibility of the area due to lack of road infrastructures (P-value = .000) and inadequate water distribution tanker (p-value = .000) were statistically significant at 0.05 confidence level. In conclusion, a sustainable water supply is essential to address Minna's water scarcity issues. The research recommends, among other that the Niger state government do all possible to provide appropriate funding for water abstraction infrastructure and other elements that support water distribution in Minn
FISCAL POLICY AND INDUSTRIAL SECTOR DEVELOPMENT IN NIGERIA
Get PDFThis study looks at how fiscal policies affected Nigeria's industrial sector growth between 1986 and 2021. To estimate the model's parameters, Autoregressive Distributed Lag was adopted. However, the results suggest that corporate income tax has a negative long-term influence on Nigeria's output of solid minerals, whereas government capital expenditures on the mining and quarrying sector and exchange rate have a positive effect. The results also show that in short run, company income tax and exchange rate are negative while government capital expenditure on mining and quarrying sector is positive. The study therefore, recommends that government should reduce the rate of company income tax for this sector because company income tax is inimical to the growth of solid minerals sector output. Government should also allocate more budget for capital expenditure in the mining and quarrying sector and also ensure that the funds are efficiently utilized to provide the necessary infrastructure neede
OPTIMAL POLICY FOR PORT SUPPLY CHAIN ORIENTATION AS A STEP TO IMPROVE THE PERFORMANCE OF THE NIGERIAN INDUSTRIAL SECTOR
Get PDFThe study evaluates Apapa and Tin Can Ports' industrial sector orientation to evaluate the food and beverage supply chain in Lagos and Ogun states, proposing solutions. The port supply chain orientation was assessed using port throughput (PT), while industrial performance was evaluated using manufacturing production value (MPV). The Nigerian Port Authority (NPA) provided data on port throughput for eight years from 2014 to 2021. The Manufacturers Association of Nigeria (MAN) provided data on manufacturing production values. Multiple regression analyses reveal a significant and direct relationship between the MPV of the food and beverage sector and the PTs of Apapa and Tin-can Island ports. The effects of PT on MPV vary across seaports, with Tin Can Port PT having a greater impact than Apapa PT. The research reveals variations in the impact of port supply chain orientation across different manufacturing clusters (Apapa, Ikeja, Ogun) at the cluster level. The cluster-specific analysis enhances the understanding of the findings and enables the development of personalized policy recommendations