JOURNAL OF ECONOMICS AND ALLIED RESEARCH
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IMPACT OF AGRICULTURE AND MANUFACTURING SECTORS ON ECONOMIC GROWTH IN NIGERIA (1981-2017)
Get PDFThis study investigates impact of agriculture and manufacturing sectors on economic growth in Nigeria from 1981-2017. It examines the causal relationship between agriculture, manufacturing sectors and economic growth in Nigeria which most previous studies have ignored. In achieving this, ordinary least square methods were adopted. The unit root test results show that some of the variables were not integrated at level. The Engle-Granger cointegration test validated by Johansen cointegration test confirmed the existence of long run relationship among the variables. Thus, all the variables tend to move together in the long run. The results revealed that the impact of agriculture and manufacturing sectors on economic growth in Nigeria is significant but not enough to take the country to an enviable level within the period covered. It also indicates that all variables considered possess inherent capacity to contribute to the growth of agriculture and manufacturing if effectively, efficiently and adequately managed. The following recommendations become imperative: there is need for government to create a healthy productive environment by providing security, steady power supply and good road network that will attract and sustain investments in manufacturing sector; the current embargo on the importation of rice and other locally produce goods should be sustained by the federal government in order to increase productivity in agriculture; there is need for government to review the current trade policies to make trade become more inclusive & sustainable to SMEs via access to finance, financial literacy & technological adoption etc
USING MONETARY AND FISCAL POLICY MIX TO RESTORE MACROECONOMIC EQUILIBRIUM: AN EXAMINATION OF CONTEMPORARY REALITIES
Get PDFMacroeconomic policies are used to drive economies through the path of sustainable growth and development following systemic shock to the circular flow. In Nigeria, concerns have been expressed at the tepid pace of adjustment in response to deployment of traditional monetary and fiscal policy tools. In this paper, the author conceptualizes the typical transmission mechanism of policy instruments, namely interest rate, cash reserve requirement, government expenditure, tax and public sector borrowing requirement with a view to investigate their effectiveness in achieving growth and employment generation goals. The author employed ex-post facto research design to collect annual data of 31 years, and formulated a dynamic system model and correction procedures of unrestricted vector auto-regression (VAR). Among others, the author found that interest rate entered output function positively as lag variable suggesting a non-trivial delayed effect of this monetary policy anchor. But surprisingly, it did not appear to have steady relationship with lending rates. On the fiscal side, tax proxy was found to be a weak policy tool and it showed anomalous positive relation with national output. Recurrent and capital spending showed mixed results with seemingly neutralizing effect. In all, the author found disturbing evidence of monetary/fiscal policy non-convergenc
EVALUATING THE EFFECT OF ROAD INFRASTRUCTURE ON HOUSEHOLD INCOME IN OGONI COMMUNITY, RIVER STATE, NIGERIA
Get PDFRural poverty reduction could be enhanced through investment in road infrastructure. The aim of this study, therefore, is to examine rural household earning return to road infrastructure using Ogoni community in Rivers State, Nigeria, as a case study. Using a structured questionnaire and an interview guide to collect data from 400 households, the findings show that Ogoni community had suffered from inadequate access road. Majority (about 56. 6%) of the households indicated that access road in the community is low. However, the study confirms that household earning return to improvement in road infrastructure in Ogoni community is positive and significant (p<0.01). The result shows a marginal effect of 0.303 unit increase in the log-odds of being in a higher category of household income given an increase in the categories of good access road. Therefore, to reduce poverty in the community, there is need for more government, cooperate organizations and people-centered efforts towards the provision of more access road in the community
IMPERATIVE OF EXCHANGE RATE POLICY FOR INDUSTRIAL INCLUSIVENESS IN NIGERIA: A COINTEGRATION APPROACH
Get PDFThis paper looks at the impact of exchange rate policy on industrial growth in Nigeria between 1981 and 2016. The study employed the Vector Error Correction Model (VECM) techniques, following the results of Johnansen Cointegration techniques that shows the existence of long run relationship among the variables considered. While, VECM estimates showed that money supply (monetary policy) impacted positively effects, evidence on, TAX (fiscal policy) impacted negative on industrial growth. Besides, the Exchange rate and Inflation impacted negatively on industrial growth., suggesting that the issue of stability remained a challenge unresolved by the Apex bank. The emanating policy antidotes are that there is urgent need to use proactive monetary policy through money supply to speed up the rate of industrial growth on one hand, while providing tax incentive to various industrial good that can further have enhanced the contribution of the sector to industrial growth on the other. In all, the need to align the objective of exchange rate policy with broader macroeconomic goals is necessary for effective policy transmission mechanism to speed up the rate of industrial progress in the country
AGRICULTURAL OUTPUT AND ECONOMIC GROWTH ADJUSTMENT DYNAMICS IN NIGERIA
Get PDFThis study investigates the extent of the agricultural output translation to economic growth both in the long run and in short run using autoregressive and distributive lag model and Bound test approach. The data used for the study is a transformed annual data into quarterly data for 1980Q3 to 2016Q4 collected from Central Bank of Nigeria statistical bulletin and from World Bank development indicator. Evidence from the study revealed that the log difference of agricultural output has an inverse relation with the log difference of real gross domestic product by 0.15% in the current year and in the short run. In contrast, the log of agricultural output at lag 1 showed a positive relation but not significant at 5% level. The bound test and the Wald test also suggested the absence of long run relationship of log difference of agricultural output, labour, agricultural capital, the net export of agricultural product with real domestic product as the dependent variable at 10%, 5%, 2.5% and 1% level of significance. The speed of adjustment of the system in the long run was 1.60% but not significant at 5% level. The study recommends the promotion and expansion of the sector to increase the output from the sector
OWNERSHIP OF SMALL NON-FARM ENTERPRISES AND HOUSEHOLD POVERTY IN NIGERIA
Get PDFEconomic diversification lies at the centre of household decision making in order to meet its consumption and other needs. Ownership of small enterprises is common among households in Nigeria and this is believed to be contributing to poverty reduction. This study explores the poverty reduction impact of household ownership of small enterprises in Nigeria using data from General Household Survey 2015. The study employs both descriptive and regression approaches in the analysis. The findings, among other things, show that households that own small enterprises have significantly lower poverty because of diversification of activities. One policy implication of this study is that households should be supported when they have the potential to manage small businesses in addition to agricultural activities. This would significantly help to reduce poverty in Nigeria
A MATHEMATICAL MODEL OF THE DYNAMICS OF BLOOD FLOW IN THE LARGE ARTERIES
Get PDFThis research studied the flow of blood through the arteries with emphasis on the large arteries considering it with elastic wall. In this work, blood was considered as a Newtonian fluid and the artery being a cylindrical tube. Given that the artery is cylindrical in shape with the motion of the blood being pulsatile, the model was generated using the Navier-Stokes’ equation. In the analysis of the study, it was discovered that the graphical representations for the radial and axial velocities in blood flow is sinusoidal which is valid since the elastic arterial walls respond to the pulsatile nature of the heart. The study also shows how blood pressure increases from the aorta, through the arteries (systemic circulation), and begins to drop as the arteries divides into smaller arterioles up to the capillaries and veins (pulmonary circulation). Its understanding goes a long way to affect health care spending with its effect on the GDP and inflation of a nation’s economy
THE QUICK, AND SLOW, MARCH OF DEMOCRACY IN SUB- SAHARAN AFRICA
Get PDFThe end of the Cold War in the international community saw the sprouting of the tree of liberal democracy in sub – Saharan African countries planted by the Western capitals through the Bretton Woods institutions’ political conditionalities embedded in the economic packages. The growth of democracy has now become stunted in the sub-region with the emergence of new generation of despots wearing democratic garbs. This paper has periscoped the emerging trends in the democratic experience, the crisis of democratic transitions and spread of hybrid regimes. Majority of the multi – ethnic countries have traits of democracy, but they actually qualify for pseudo – democratic regimes without deep – rooted observance of political rights and unencumbered opposition. A policy implication is how to galvanize the civil society in the sub-region towards the arduous task of mobilizing the citizenry to rescue the democratic practices from the grip of pseudo – democratic regimes in the sub-region
THE ECONOMIC COST OF MALARIA TREATMENT TO POOR RURAL HOUSEHOLDS IN SELECTED COMMUNITIES IN ENUGU STATE
Get PDFMalaria is one of the leading tropical diseases affecting majority of the rural population in Nigeria. This disease drains the insufficient income of rural dwellers and further reduces their socio-economic standards. This study examined the economic cost of malaria treatment to poor rural households selected from six communities in Enugu state using cost of illness approach. It found that ‘richest’ rural households on the average spentN6153 (28.41%) monthly while households from the poorest quintile spent 30.25% of their average monthly income on malaria treatment. This leads these households into large financial catastrophe forcing them to reduce other basic expenses. These poor households are likely to remain in poverty if measures are not taken to alleviate the situation. Policies that would consider the introduction of community-based health insurance scheme or reduction in user fees in the rural areas are recommended.