JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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RELATING OIL PRICE DIFFERENTIALS TO INDUSTRIAL PRODUCTION IN NIGERIA: BVAR APPROACH
Get PDFIn the protracted quest for the diversification of the Nigerian economy, empirical conclusions have been made that oil price shocks are negatively related to output growth. Many studies on oil price –macroeconomy relationship in Nigera have been conducted without considering the net differential of the oil price change which contributed in muddling up the results.In a bid to overcome this, we employed the EGARCH model to extricate only the increases in oil price and used the conditional volatility measure in the Bayesian Vector Autoregression(BVAR)model based on monthly data (1986M1 to 2015M12) for industrial production index and selected macroeconomic variables in Nigeria. Our results show that shock to oil price causes a rise in industrial production which may indicate that positive oil price increase is favourable to output growth in Nigeria. Therefore, the authorities should take advantage of the increased revenue accruing from rise in oil price to diversify into industrial and manufacturing productions and further stimulate industrial capacity growth through appropriate policies
BRAIN DRAIN AND LABOUR OUTPUT IN NIGERIA: AN ECONOMETRIC APPROACH
Get PDFWestern societies’ contact with Africa was grossly associated with massive slave trade. Post the contact, the paradigm shifted from slave trade to brain drain. This movement of highly skilled manpower from the country to developed societies reduces both the quality and quantity of labour force in the brain drained-country. Hence, this study investigates the impact of brain drain on labour productivity in Nigeria from 1999 to 2017 using quarterly data gotten from World Development Indicators (2018) and National Bureau of statistics (2017).Autoregressive Distributed Lag (ARDL) model is adopted. The bounds test reveals the presence of cointegration amongst the variables. The Philips Peron unit root test reveals that the variables are stationary both at level form and after first difference, thus fit for long run estimation.Fromthe results: brain drain has a significant impact on labour output such that the higher the brain drain, the lower the labour productivity in real terms; over the years of study, work hours per capita decreased, but total hours worked increased due to increase in population. The study also identifies other causes of poor labour output as: unemployment, poor salaries, poor infrastructures (eg. Road, power, water, etc.), high fuel prices amongst others. Therefore, the study recommends that: government should review policies relating to remuneration/salary and general working conditions of workers, especially medical personnel and other professionals; government should improve infrastructural facilities necessary for improving labour productivity and regulate her population growth rate to a manageable size
NIGERIAN ECONOMY: THE IMF AND WORLD BANK INVOLVEMENT TOWARDS DEVELOPMENT
Get PDFWorld Bank and the International Monetary Fund (IMF) are twin intergovernmental global organization pillars supporting the structure of the world's economic and financial order. In this study, we take a critical look at more than twenty five (25) development packages provided to Nigeria by IMF and WB in the past 25 years with more expected under the present Buhari regime towards better development in Nigeria. This paper uses theoretical and literature reviews to provide a critical analysis of IMF and WB in the development of Nigerian economy since 1994. The role of IMF and WB shall be equally discussed about developing Nigeria and whether the policies, grants and support are well intended or misplaced by the Nigerian leadership. The review therefore calls for a total review of governance and development plans by researchers, Nigerian government, international communities, and most importantly the IMF and WB to ensure that the intents of grants, aids and development agenda is achieved as soon as possible or provide better options for economic development of Nigeria
EFFECT OF REGIONAL FINANCIAL INTEGRATION AND GOVERNANCE QUALITY ON ECONOMIC GROWTH IN ECOWAS (2001-2016)
Get PDFThis study estimates and analyzes the impact of regional financial integration and governance quality on economic growth in West Africa for the period 2001 to 2016. In order to capture regional financial integration, composite index of financial integration and macroeconomic policies, called African Regional Integration Index (ARII) was employed. Governance quality was captured by building an index from components measuring various political and economic dimensions facing firms in a country. The theoretical foundation for this study is based on the Neoclassical-Solow growth model, while the model was estimated using the dynamic panel approach with system generalized methods of moments (SGMM). Estimated result shows that financial integration and governance quality do not support economic growth in ECOWAS, as negative relationship was found. However, the interactive effects of regional financial integration and governance quality shows a positive but insignificant effect on economic growth. The study concluded that ECOWAS commission with full support of all member countries should provide all necessary financial infrastructures that will provide essential support to good governance in the financial sector of the region
MATHEMATICAL SURVEY OF THE TERM STRUCTURE OF INTEREST RATE: EVIDENCE FROM NIGERIAN EUROBOND
Get PDFTerm structure of interest rate describes the relationship between the yields on default-free securities which only differ in their term to maturity which mirrors the market future expectation for interest rates having consequences on fiscal policies with such factors such as interest rates and yield. The short-term yield and the long-term yield react sharply to fresh market information which makes modeling and forecasting the term structure challenging. The paper aims to (i) determine how to predict the in-sample yield of time to maturity (ii) investigate how to use the parameters to determine the long-term and short-term yield. (iii) examine how the model fits into the observed data.(iv) determine the level, slope and curvature of Nigerian Eurobond. The statistical tools used for the analysis of data collected include ad-in Excel, SPSS 23 and the ordinary least square method. A linear regression was conducted and the results showed that the Nelson-Siegel model fits well into the observed data with R2 adjusted of 90.8%
TOURISM DEVELOPMENT IN NIGERIA: A MACROMARKETING PERSPECTIVE
Get PDFMacromarketing thought provides the philosophy and principles for macroeconomic impact on the society. Macromarketing as a social process involves the impact of marketing systems on the society and society on marketing systems. The impact of tourism on economic development has been extensively discussed in extant literature from different perspectives and disciplines including marketing. However, the import of macromarketing and its approach to understanding the social process relating to tourism has received less attention by previous studies in Nigeria. Consequently, this study employed exploratory research design using desk research to examine the issues relating to macromarketing thought and tourism development from publications in the journal of macromarketing between 2005-2015. This is to examine the arising issues from the journal’s publications and to infer strategies that can impact tourism development in Nigeria. 29 articles were identified through judgmental sampling to be related to tourism development out of a total of 522 articles classified in 10 categories of tourism activities. Frequency distribution and charts were employed to depict the trend of themes relating to tourism development in the journal for the period under review. The analysis indicates a significant consideration for tourism issues especially in the areas of sustainability, tourism destination and economic development. The consideration for these three special areas suggests their synergistic effect on the economy for strategic economic development purposes. The study therefore recommends that this parallel relationship be harnessed for the benefit of tourism development in Nigeria
PETROLEUM PRODUCTION AND CONSUMPTION PATTERN IN NIGERIA: DOES THE LAW OF DEMAND HOLD?
Get PDFWith the Nigerian government pursuing programmes to improve the welfare of the citizenry, there are uncertainties endangering the actualization of this goal. Being an economy with a trajectory of high reliance on oil revenues through the years and high dependence on external financing, shocks in oil prices are expected to adversely affect the economy. This study seeks to address the impact of oil price change on the consumption pattern of Nigerians with a view to validating the theoretical law of demand. Employing the autoregressive distributed lag model, the study shows that increase in oil prices negatively affected both consumption and development level of the citizenry in Nigeria. Thus, the study recommends among other things, that government should endeavor to cushion the effect of such price fluctuations through fiscal policy-mix in the prevailing economic fundamentals
ECONOMIC RESTRUCTURING: AN IMPERATIVE FOR DIVERSIFICATION OF THE NIGERIAN ECONOMY
Get PDFEconomic diversification is an essentially necessary option to overcoming pending dangers of mono-culture practice. As a mono-culture economy, Nigeria is susceptible to the vicissitude of market forces, because if the single product of the economy is no longer viable, or no more valuable to consolidated consumers, the single-product economy is at threat of recession (fall in gross domestic product). Unfortunately, the Nigeria political economy has been structured to have heavily centralized its economic resources making it impossible for active economic participation of interest groups (including professionals). Where the Federal government has more than 50 percent of accrued revenue, there is obviously no incentive to devolve economic resource control, so long as crude oil continues to provide the needed revenue. This study adopted the political economy methodology. Findings of the study revealed that devolution of economic resources (economic restructuring) is a sine qua non for diversification of the Nigerian economy for sustainable growth and development