JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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IMPACT OF FOREIGN DIRECT INVESTMENT INFLOW ON TRADE OPENNESS: NEW EMPIRICAL EVIDENCE FROM NIGERIAN DATA
Get PDFFollowing the dearth of studies on the FDI inflow-trade openness nexus in Nigeria, this raised three important questions aimed at understanding the political economy of this relationship. First, is there a long-term relationship between FDI inflow and trade openness in Nigeria? Second, how is FDI inflow impacting on trade openness in Nigeria? Third, what is the causal relationship between FDI inflow and trade openness in Nigeria? Using various tests for co integration, the study demonstrated that there is a stable long-term relationship between FDI inflow and trade openness in Nigeria. Using OLS regression, the study found that FDI inflow significantly deters trade openness in Nigeria. The results also indicate that real GDP growth and credit to the private sector are potent drivers of trade openness, while the level of infrastructural development and exchange rate fluctuation are deterring factors. The Granger causality test showed that there is a unidirectional causality running from FDI inflow to trade openness in Nigeria. The policy implications of these findings were also discussed
CASHEW NUT PRODUCTION AND CASHEW FARMERS' WELFARE IN KOGI STATE, NORTH CENTRAL, NIGERIA
Get PDFCashew nut production plays a vital role in the livelihoods of smallholder farmers in many tropical regions. This study investigates the socio-economic effects of cashew nut production on the welfare of cashew farmers in Kogi State, North Central Nigeria. Using a survey research design, data were collected from 373 cashew farmers across the three senatorial districts of the state. The study employed descriptive statistics and regression analysis to analyse the data. The findings reveal that cashew nut production, income levels, and the level of education among cashew farmers are statistically significant and positively associated with their welfare. Specifically, an increase in cashew nut production, income, and education levels corresponds to an improvement in farmers' overall well-being. The results also indicate a positive relationship between access to credit and farm size, although their effects on welfare were not statistically significant. These findings underscore the importance of promoting cashew farming as a viable livelihood strategy and addressing factors that can enhance the productivity and profitability of this agricultural activity. The study recommends strengthening educational programs for cashew farmers, facilitating access to credit and financial services, promoting sustainable farming practices, and investing in infrastructure development in cashewproducing regions
EFFECT OF FOREIGN DIRECT INVESTMENT ON ENVIRONMENTAL QUALITY IN WEST AFRICA
Get PDFThe study empirically examines the impact of foreign direct investment (FDI) on environmental quality and tests the validity of the Pollution Haven Hypothesis in West Africa. The study uses annual panel data for 16 West African countries, spanning from 1996 to 2022. The study employs two estimation techniques (for robustness check), namely, panel-corrected standard errors (PCSE) and feasible generalized least squares (FGLS). The results reveal that FDI has a negative effect on West African environmental quality before the turning point; thus, after the threshold level, the effect changes positively. The results confirm the validity of the pollution haven hypothesis in West Africa. Based on the results, policymakers in the region should adopt threshold-based environmental policies, encourage sustainable economic growth, and strengthen monitoring and enforcement of environmental regulation
EXTERNAL DEBT AND CAPITAL FORMATION IN NIGERIA: NEW INSIGHT FROM THE QUANTILE AUTOREGRESSIVE DISTRIBUTED LAG (QARDL) MODEL
Get PDFThe study is on the impact of external debt on capital formation in Nigeria from 1981 to 2022 using the Quantile Autoregressive Distributed Lag (QARDL) model. The findings indicate that external debt has a notable adverse effect on capital formation in Nigeria, suggesting that increased levels of external debt impede capital formation by disrupting investment choices and distorting economic growth prospects. Additionally, the study reveals a positive relationship between gross domestic product and gross national savings on capital formation. Granger causality tests support the significance of external debt and national savings as key predictors of capital formation in Nigeria. The study recommends that policies should be geared toward increasing transparency in debt management, promoting domestic savings, diversifying the economy, enhancing export capacity, improving financial sector regulation, fostering public private partnerships, and monitoring debt sustainability indicators. Implementing these recommendations can enhance capital formation, stimulate economic growth, and reduce reliance on external borrowing in Nigeri
EFFECT OF HUMAN CAPITAL FLIGHT ON ECONOMIC GROWTH IN SUBSAHARAN AFRICA
Get PDFEconomic growth refers to a rise in the production of goods and services by people, either in terms of quantity or quality. It plays a crucial role in determining the overall living standards of individuals. Therefore, in the absence of human capital or reduction of human capital in a country there will be non-performance of physical capital (such as tools, machinery, and equipment) which will delay economic growth and development in a nation. The objective of the study is to examine the effect of human capital flight on economic growth in the SubSaharan African (SSA) region. The technique adopted for this study is the Panel Corrected Standard Error Method. This method was employed because it controls for heteroscedasticity and auto correlation. The result revealed that there exist a direct relationship between net migration and economic growth in SSA. This shows that the net migration enhances economic growth in SSA region. Thus, net migration positively impact economic growth in the SSA region. Investment in education and training is important for SSA countries as it can aid individuals in improving their skills and progressing in their professions
IMPROVING EFFICIENCY IN THE PORT-TO-SITES TRANSPORTATION OF CONTAINERS IN THE MANUFACTURING SUPPLY CHAIN
Get PDFThe literature lacks clarity on the impact of location on container transportation efficiency in Nigeria, necessitating a comprehensive understanding of port-hinterland relationships and transportation costs. The paper explores the importance of a firm's location in Lagos and Ogun States, Nigeria, for efficient port-hinterland freight transportation. The study surveyed 43 publicly quoted manufacturing firms in Lagos and Ogun States, listed on the Nigerian Stock Exchange for over ten years. These firms are located in the major industrial estates in Lagos and Ogun States, which are Ilupeju, Agbara, Ewekoro, Ikeja, Ikorodu, Isolo, and Shagamu. The majority of firms, 88.9%, utilise trucks for transporting containers from the port to their factory sites. The Pearson Correlation analysis reveals a significant correlation (r=0.55) between location and container transport costs. The study suggests that new firms should choose strategic locations with rail and inland waterways for effective container transportation. Existing businesses should concentrate on strategizing to mitigate the negative effects of portto-site transport on their revenue and profi
ECONOMIC POLICY UNCERTAINTY, MACROECONOMIC VOLATILITY AND STOCK MARKET BEHAVIOUR IN NIGERIA
Get PDFThis study investigates the impact of economic policy uncertainty and macroeconomic instability (volatility) on stock market behaviour (returns, liquidity and volatility) using monthly data collected from Central Bank of Nigeria statistical database, Nigeria Exchange Limited database and World uncertainty database covering April 2016 to July 2022. Macroeconomic volatility and stock market volatility were detected using GARCH (1,1). The autoregressive distributive lag model was used for the study. This study found that economic policy uncertainty positively and significantly impacts stock market returns, stock market liquidity, while its effect on volatility is significantly negative. Macroeconomic volatility (exchange rate volatility) significantly and positively determines stock market returns and market liquidity, but its impact on market volatility is negative but insignificant. This study also found that stock market volatility positively and significantly accounts for stock market returns and market liquidity. This study recommends that the Security and Exchange Commission (SEC) should initiate policy targeted at boosting market liquidity and strengthening the stock market resilience against shocks associated with economic policy changes, while the Central Bank of Nigeria should intensify the current economic policy, especially exchange rate policy aimed at stabilizing the macro-economy because of the positive impact on stock market returns and liquidit
FINANCIAL DEVELOPMENT AND THE ATTAINMENT OF INCLUSIVE GROWTH IN AFRICA
Get PDFThis study investigated the nexus between Financial Development (FD) and Inclusive Growth (IG) in Africa. Unlike the extant literature whose concentration has been on using gross domestic product per capita as an indicator for inclusive growth, this study used the inclusive growth index. The study employed 18-year panel data collected from across 27 African countries in the dynamic estimations of the FD-IG nexus using the mean group (MG) estimator. The results showed that all financial development indicators exhibited only a significant impact on the inclusive growth index in the long run with mixed nexus except atm. It was established that financial development. The findings underscored the need for policymakers to develop innovative, sustainable, and inclusive financial systems capable of distributing growth benefits equitably
AFRICA'S ENERGY DILEMMA: UNVEILING THE NEXUS BETWEEN OIL PRICE SHOCKS AND STOCK MARKET PERFORMANCE IN SELECTED OIL-RICH NATIONS
Get PDFThis study examines the relationship between oil shocks and stock market performance in Nigeria, Egypt, South Africa, and Tunisia. The data covered the period from Q1:2010 to Q4:2020. Using a Panel ARDL approach, the analysis reveals significant findings. Oil price shocks negatively impact stock market performance in the long run, emphasizing the vulnerability of these economies to oil price fluctuations. A positive long-run relationship is observed between exchange rates and stock market performance, while inflation rate shocks have a negative effect. The study highlights the importance of prompt adjustments in stock markets and proactive policies to mitigate the impact of oil shocks. Policymakers should focus on diversification, effective exchange rate management, and inflation control to ensure sustainable economic growth and maximize the benefits of oil wealth. These findings have important implications for policymakers, investors, and market participants in oil-rich African economies
ANALYSIS OF THE FACTORS THAT INFLUENCE DEATH AND SURVIVAL OF ADVERTISING AGENCIES IN NIGERIA
Get PDFThe study which covers 2001-2011; 2019-2024, adopted stratified random sampling using in-depth interview to examine the factors that influence survival in seven accredited advertising institutions dead and alive in Nigeria. The objectives were to compare the failing factors with the survival factors so as to share reliable data that would contribute in saving the industry from extinction. Results showed that: a monumental stagnancy is hitting the industry; while poor entrepreneurial spirit ranked highest on the causes of death; followed by clients’ debts and economic downturn in 2011; inability to work with modern technology and innovations (as practiced in performance advertising agency) and economic downturn caused the 80% death rate in 2019-2023. Since dead and surviving agencies operated under same economic factors, the study concluded that inability to practice performance advertising and poor entrepreneurial spirit are the root causes of death in advertising agencies. To save the industry from extinction, the study called on ad practitioners and regulatory bodies to collaborate with performance advertising; involve fully the performance advertising practitioners in the skill-update programs of the Advertising Academy; restrict unskilled entrepreneurs and non-marketers from heading agencies