JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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MACROEONOMIC ENVIRONMENT AND SCHOOLING IN NIGERIA
Get PDFThe paper investigated into the relationship between macroeconomic environment and schooling in Nigeria using the annual time series data spanning from 1981 to 2018 by employing the Autoregressive Distributed Lags (ARDL) Model application to cointegration and Error Correction Model techniques known as Bounds Testing. Unit root test was conducted on all the variables of interest in the study. The study finds evidence that public education expenditure, public health expenditure, government revenue and urbanization have strong and significant impact on schooling in Nigerian economy. The analysis of the study also confirms a long run relationship existing among schooling, public education expenditure, public health expenditure, government revenue and urbanization in Nigeria which implies that the macroeconomic environment provides a useful information about schooling in Nigeria. The policy implication of the findings of this paper is that as a matter of priority, government should encourage stability in macroeconomic variables capturing macroeconomic environment and be more focused on growth oriented, urbanization and stabilization policies especially at macro level which can stimulate schooling in Nigeria. In addition, there is need for government to sustain its revenue generating drive through tax and her education sector funding like Tertiary Education Trust Fund (TETFUND) and the Universal Basic Education (UBE) counterpart-funding initiatives channeled towards educational development as this step will enhance schooling in Nigeria
INTERROGATING THE DETERMINANTS OF FOREIGN EXCHANGE MARKET PRESSURE IN NIGERIA
Get PDFIn view of the perennial problem of foreign exchange market pressure in Nigeria, this paper has interrogated the determinants of foreign exchange market pressure in the Nigerian economy. The study is anchored on the Marshall-Lerner theory of demand and supply of foreign exchange. The study employed the Autoregressive Distributed Lag (ARDL) model on the Nigerian data spanning from 1970 to 2019. The findings of the study revealed that oil prices, current account position and monetary policy rate are inversely related with the foreign exchange market pressure; while inflation rate, government expenditure and foreign debts were found to be positively related with foreign exchange market pressure in Nigeria both in the short and long-run. Based on these findings, the study recommended that there should be proper demand management of foreign exchange by the Central Bank of Nigeria to conserve the scarce foreign exchange for importation of productive inputs so as to encourage local production. On the supply side of foreign exchange management, the study recommends that the economy should be diversified away from oil to non-oil production and exportation. Finally, the study recommended that government at all levels in Nigeria should enhance the internally generated revenue so as to reduce foreign debt servicing burden in the country among others
J-CURVE OR THE REVERSE J-CURVE IN NIGERIA: DOES STRUCTURAL BREAK MATTER?
Get PDFThe study investigated whether structural break matters in shaping the J-Curve, which highlights the nexus between trade balance and exchange rate movements. The study drew evidence from Nigeria data from 1970 to 2018, while using the 1986 Structural Adjustment Program (SAP) as a fiscal policy initiative criterion to justify the break periods into Pre and Post-SAP. The study adopted the Auto Regression Distributed Lag (ARDL) and Non-Linear Auto Regression Distributed Lag (NARDL) models to account for the asymmetric and non-asymmetric effects. Though the J-Curve hypothesis is not confirmed for Nigeria, the N-shape for the overall and post-SAP period connotes its potentiality. Nevertheless, the failure of the Pre-SAP period to also exhibit an N-Shaped curve but rather an inverted or reverse J-Curve indicate that structural break matters in the shape typology of the J-Curve analysis. Furthermore, foreign income plays a more dominant role than domestic income in affecting Nigeria’s trade balance. To this end, the study suggested that government should pay due consideration while structuring its policies, as the break periods indirectly influence policy outcomes such as J-Curve. In addition, the pursuance of economic diversification will assist to decimate the foreign income-domestic income gap, as well as stem domestic currency depreciation
THE FINANCIAL CALCULUS OF THE TERM STRUCTURE OF INTEREST RATE: ASYMPTOTIC COMPARISONS OF NELSON–SIEGEL AND DIEBOLD AND LI
Get PDFThis paper explains the rationale behind the yield curve together with its applications and information content. It goes further to explain the spot and forward yield curves. This is achieved by developing the main theories which tend to describe the functional structure and behavior using continuity assumptions. We start with an introduction to the development of forward rate function using the Laplace transform and the yield curve specifically. The spot rate is then constructed to arrive at a non-linear polynomial whose coefficients can be estimated by ordinary Least Squares method and Nelson‐Siegel family techniques. The Nelson family technique is applied by financial institutions which have a lot of activities in financial markets. Though it seems to be influential, It is not the only determinant of consumer prices in financial institutions and consequently it is advisable that market operators understand the functional behaviour of the curve and how to interpret it in analysis. An appraisal of yield curve is significant for both market players and financial institutions for efficient business decision. The curvature of yield function demonstrates the market expectation of future growth of financial market. The objective of this paper is to theoretically compare spot rates under the conditions of Diebold and Li with that of Nelson-Siegel in asymptotic values and derive an approximating curvature which possibly estimates spot rates when corresponding time varying parameters have been obtained. In this work we have used non-constraint optimization to estimate the parameteremploying time to maturities 24 months
FINANCIAL DEEPENING AND THE MANUFACTURING SECTOR OUTPUT IN NIGERIA
Get PDFThis paper investigates the effect of financial deepening on manufacturing sector output in Nigeria. One of the challenges faced by the manufacturing sector is inadequate finance because most incipient entrepreneurs do not have the financial capacity therefore they look at the financial institutions for assistance. So the specific objective of the study are to examine the effect of the ratio of private sector credit to gross domestic product and the total number of banks on the manufacturing sector output in Nigeria. Quarterly time series data were utilized for the period 1985q1 to 2018q4 for the analysis. The Autoregressive Distributed Lag (ARDL) technique was employed for the estimation. The results obtained show a positive but insignificant relationship between the manufacturing sector output and the total number of banks, the ratio of the broad money supply to GDP and the ratio of market capitalization to GDP both in the long run and the short run. However, a negative relationship exists between the ratio of private sector credit to GDP, the prime interest rate and ratio of savings to GDP and the manufacturing sector output both in the long run and short run. The recommendations made among others are that the private sector credit and the broad money supply should target the manufacturing sector in the economy and also the prime interest rate should be at a single digit level so that the manufacturers can access adequate credits
EFFECT OF YOUTUBE INSTRUCTIONAL PACKAGE VIDEOS ON MALE AND FEMALE SECONDARY SCHOOL STUDENTS` ACHIEVEMENT AND RETENTION IN ECONOMICS IN MUSHIN LOCAL GOVERNMENT AREA
Get PDFThe purpose of the study was to experimentally determine the effect of YouTube instructional package videos on male and female secondary school students` achievement and retention in Economics in Mushin Local Government Area. The study adopted quasi experimental research design. Two research questions and two hypotheses guided the study. The population of the study was 1261 senior secondary school II students offering Economics in Mushin Local Government Area, Lagos State (2017/2018 session). The sample size for the study was 60 senior secondary school II students (35 male and 25 female). The sampling technique adopted was purposive sampling techniques. The instrument for the study was a 50 items multiple choice objective questions of Economics achievement test and retention test adopted from West Africa Examination Council (WAEC). Using Kudar Richardson 20 (K – R 20) and test – retest, the reliability coefficient of 0.98 and 0.77 were obtained on the academic achievement test and the retention test instruments. Research questions were answered using mean and standard deviation while hypotheses were tested at 0.05 level of significance using Analysis of Covariance (ANCOVA). The study found out that YouTube instructional package video is effective for improving both male and female students` achievement and retention in Economics
INFLATIONARY THRESHOLD AND ECONOMIC GROWTH IN NIGERIA
Get PDFThis paper estimates inflationary threshold in Nigeria using all the components of the aggregate demand model. The study used annual time series from 1981 to 2019 and the variables were confirmed to be free from unit root problems using Augmented Dickey Fuller and Ng-Perron Tests. The bounds test results suggested that there was long run relationship among the variables while the short run error correction model showed that the variables were capable of adjusting back to equilibrium in an event of any temporary shock within a year. The study found that the inflationary threshold for Nigeria is 8%. This is because the residual sum of squares was at maximum at 8% while the sum of the coefficients of inflation and the constructed dummy variable remained highest at 8%. It was therefore recommended among other things that central bank of Nigeria should gear its inflation target towards 8%
SOCIOECONOMIC DETERMINANTS OF HOUSEHOLD DEMAND FOR FOOD IN OSUN STATE NIGERIA
Get PDFThis study described the food demand of households in Osun State, Nigeria with a view to identifying the determinants of household food expenditure. Multistage sampling procedure was used to select 669 households in the study area and structured questionnaire was used to obtain primary data from respondents. Data on socio-economic characteristics and expenditure pattern were analysed using descriptive statistics while demand for food groups in this study was estimated using Quadratic Almost Ideal Demand System (QUAIDS) model. Findings revealed that 57.4% of the household heads were male, 56% were married, with a mean age and household size of 55 years and 7 persons respectively. Grains had the largest share of household total food expenditure, ranging from about 45% and 40 % among the high income quartiles and urban households to 63% and 52% among the low income quartiles and rural households. The poorest households had the least (N 7,817.35) mean food expenditure, with about 0.57% as food expenditure as percentage of income and the richest households had the highest (N 10,315.55) expenditure share. Result from the QUAIDS model revealed that budget share of households on grains/starch increases with increase in price of grains/starch (p<0.01), while it decreases with increase in prices of animal protein (p<0.01) and fat/oil (p<0.05). The study conclude that policy-makers should consider consumer behavior at different income levels, as this will affect the rate at which people have access to food as such enhancement programs needs to be region-specific especially in low income earning states and take into account these behavioral differences in food expenditures
EFFECTS OF ELECTRONIC BANKING ON EMPLOYEES’ RETENTION IN BANKS
Get PDFThe continuous retrenchment of banks’ employees due to the introduction of new technology remains a matter of concern among several researchers. This study therefore examines the effect of electronic banking on employee retention in banks. The objectives of this study are to ascertain the relationship between electronic banking and skilled employee retention in banks; and to determine how electronic banking affect employee retrenchment in banks. To achieve these objectives, descriptive research design was employed and questionnaires were administered to the staff of Guaranty Trust Bank. Spearman’s rho model was employed to test hypothesis one, and Logit Binary regression model was employed to test hypotheses two. Arisen from the analysis of the study, the study reveals that there is significant relationship between electronic banking and skilled employee retention in banks; and electronic banking has significant effect on employee retrenchment in banks. Following the findings of this study, the researcher recommended that the need for skilled employee retention in banks cannot be overemphasized; banks should ensure that skilled employees are retained despite the introduction and employment of electronic banking services. However, electronic banking services can be employed as a more efficient tool to replace none performing employees in banks, especially in the area where electronic banking services can replace human effort