KASU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES
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ASSESSING THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON SMALL AND MEDIUM ENTERPRISES (SMES) IN KADUNA STATE
Full text linkThis paper investigates the impact of exchange Rate fluctuations on small and medium enterprises (SMEs) in Kaduna North Local Government Area, Kaduna State, Nigeria. The study encompasses a population of 1,000 SMEs, from which a sample of 278 businesses was selected using Krejcie and Morgan's formula to ensure a statistically valid representation. The Data were collected through structured questionnaires administered to SME owners, capturing key demographic and business-related information, including exposure to foreign exchange fluctuations which were analyzed using descriptive and inferential statistical methods, including a chi-square tests, facilitated by SPSS software, to achieve the outlined objectives. The findings reveal that exchange rate fluctuations significantly affect SME performance, impacting aspects such as sales revenue, credit collection, and supply chain management, and that the development of indigenous small and medium sized businesses in Kaduna North Local government depends largely on exchange rate stability. The results suggest the need for more robust foreign exchange management strategies and supportive policies to mitigate the adverse effects of exchange rate fluctuations on SMEs
Modeling Export Functions: An Empirical Evidence from Nigeria
Full text linkThis study is devoted to the modeling of export functions in Nigeria to examine the factors that drive export. The study analysis was carried out from 1981 – 2020 with data gathered from the statistical bulletin of the central bank of Nigeria and World bank development indicators. Preliminary analysis of descriptive statistics and unit root test using the Augmented Dickey-Fuller were carried out while the Dynamic Ordinary Least Square (DOLS) was adopted as the econometric technique for estimation of coefficient with post estimation checks. The unit root test results showed that all the variables employed are stationary with a combination of level and first difference series. The DOLS result revealed that government capital expenditure and foreign direct investment inflows are the significant factors that positively drive export in Nigeria while real effective exchange rate and real interest rate are the insignificant positive driver of export. The study further found that about 67percent variation in export is caused by real effective exchange rate, government expenditure, real interest rate, and foreign direct investment while the post estimation diagnostics – normality and stability tests confirm that the study residual series are normally distributed and stable over 1981 – 2020. The study thus among others recommend that the government should increase its spending on capital infrastructure and encourage more foreign direct investment inflows to further boost export performance
Tax Reforms, Taxation and Economic Growth in Nigeria (1990 - 2022)
Full text linkThis study investigates the relation among tax reforms, taxation and economic growth in Nigeria coveting the period 1990-2022. It used Gross Domestic Product as proxy to measure economic growth and applied ARDL Model to analyze the data. The result of the analysis revealed that in the long run taxes have insignificant impact on economic growth. Petroleum profit tax had insignificant negative impact on economic growth while all other taxes had insignificant positive impact on economic growth. But in the Short run, both Petroleum profit tax and withholding tax positively impacted economic growth significantly but Company income tax impacted economic growth negatively. Based on the results, the study recommends that government should increase efforts towards generating more revenue through tax which would be used to bring about growth in the economy
External Debt and Private Investment: Evidence from Nigeria using Toda-Yamamoto Causality Approach
Full text linkThis study aims to investigate the impact of public external debt (multilateral and bilateral debt) on private investment in Nigeria, focusing on the period from 2006Q1 to 2021Q4. Secondary time series data is utilized in this study to analyze the relationship between public external debt and private investment in Nigeria. Unit root tests, Johansen co-integration test, and three prominent co-integrating regression models (Dynamic Ordinary Least Squares, Fully-modified Ordinary Least Squares, and Canonical Co-integration Regression) are employed. Additionally, the Toda-Yamamoto approach is utilized for Granger causality/block exogeneity testing. The study reveals a long-run relationship among the variables. The Dynamic Ordinary Least Squares (DOLS), Fully-modified Ordinary Least Squares (FMOLS), and Canonical Co-integration Regression (CCR) models indicate a positive and significant association between multilateral debt and private investment in Nigeria. However, public bilateral debt shows a negative but insignificant relationship with private investment at a 5 percent level of significance. The findings suggest that public external debt, particularly multilateral debt, positively influences private investment in Nigeria. However, the impact of public bilateral debt on private investment appears to be negative but insignificant. Based on these results, it is recommended that multilateral and bilateral loans should be directed towards specific sectors such as infrastructure development, social sector projects, environmental protection projects, agricultural and rural development projects, economic reform programs, disaster relief and reconstruction, as well as health, nutrition, and poverty reduction programs. Such allocation of funds can potentially enhance private investment in Nigeria
IMPACT OF HEALTH EXPENDITURES ON ECONOMIC GROWTH IN NIGERIA. (1990- 2023)
Full text linkThe paper examined the impact of the health expenditures on economic growth in Nigeria from 1990-2023). The study was a time series thereby employing Secondary data sourced from the Central Bank of Nigeria (CBN) Statistical bulletin 2023 and world Development Index 2023. The data were subjected to unit root diagnostic test to determine whether they are stationarity or otherwise. The data were integrated of order 1(0) and 1(1). Therefore, the Autoregressive Distributed Lag (ARDL) model was adopted, the Error Correction Model (ECM) technique was also adopted to check for the cointegration. The study reported along run relationship between economic growth and health expenditures instruments. The result shows that Domestic general health expenditures, inflation and exchange rate negatively affect economic growth in Nigeria. While Domestic private health expenditure, out of pocket Expenditures, healthcare ratio per capita healthcare budget expenditure ratio to GDP rate and immunization intervention rates positively affects economic growth in Nigeria. The diagnosis tests; Serial correlation and Heteroskedasticity tests were conducted on the variables and the result from Breusch-Pagan-Godfrey test for heteroskedasticity and from Breusch-Godfrey serial correlation LM test revealed that there is no problem of heteroskedasticity and serial correlation respectively. The study concludes that healthcare expenditures tools influence economic growth in Nigeria and the paper recommends the federal government should enhance individual health spending ability (health insurance may be relevant here), increase budgetary allocation to health sector and monitor the implementation of heath sector budget to achieve sustainable economic growth
Impact of New Business Start-Ups on Unemployment Reduction in Kaduna State, Nigeria
Full text linkThis study, analyzed the role of the impact of New Business start-ups on unemployment Reduction in Kaduna State Nigeria. It employed structured questionnaires which were administered to collect information. The study adopted descriptive and multinomial Regression estimation technique to analyze the data which was collected from the field. The findings of the study revealed that there is a statistically significant relationship between New Business start-ups and unemployment. Since the overall probability is statistically significant, between entrepreneurship and unemployment.it was found that self-employment has significant impact on unemployment. It shows that all the independent variables. Fostering and supporting start-ups businesses have the capacity to reduce unemployment in the state is positively related to the dependent variable. From the coefficient of the variables, an increase in variables lead to a proportional rise of about 2.91%, in employment. The coefficients of new business start-ups create job opportunities, thereby reducing unemployment rate; potential benefit of new business start-ups include self-employment and unemployment reduction); creating enabling environment for business start-ups consequently reduce unemployment and new business start-ups create self-employment rate are negatively related to the dependent variable. From the coefficient of the variables, an increase in variables lead to a proportional decrease of about 0.79%, -1.17%, -0.50% and -1.57% in employment. The study suggests that efforts should be made by government for individuals to set up their own businesses. Emphasis should be on incentives for people to set up their own businesses and become self-employed especially by setting up new business
Impact of External Debt on Economic Growth in Nigeria: An ARDL Bound Testing Approach
Full text linkThis study examined the impact of external debt on economic growth in Nigeria covering the period 1990-2020. The study used time series data sourced from World Development Indicator 2022. The technique of data analysis employed was Autoregressive Distributive lag (ARDL) for data analysis. The series were found to be stationary at levels. The long run relationship was established using bound test. The result of ARDL estimates showed that external debt has negative and insignificant impact on economic growth in Nigeria. Exchange rate that has also affected public debt stock and value was negative and significant in influencing growth. However, gross fixed capital formation was positive and significant in influencing growth. Based n the findings of the study, the study suggest that Debt Management Office should set mechanisms in motion to ensure that loans are utilized for the purpose for which they were acquired. More so, the government should continue to encourage foreign direct investment in order to bring more inflows that will trigger economic growth
FINANCIAL INCLUSION AND ENVIRONMENTAL POLLUTION IN NIGERIA
Full text linkThe study examined the link among financial inclusion, energy utilization, economic growth, urbanization and environmental deterioration in Nigeria from 1980-2022 by employing Autoregressive distributed lag(ARDL) Bound testing technique. It is clear that given out credit facilities (financial inclusion)to citizens by both public and private financial institutions may accelerates the level of environmental pollution in Nigeria. Hence, the estimated result in the short-run reveals that financial inclusion and economic performance reduce Carbon dioxide (CO2) emissions. Nonetheless, energy utilization is positively linked with CO2emissions. The long-run analysis also indicates that financial inclusion and growth domestic product (GDP) are negative and significant in influencing CO2 emissions. Therefore, policymakers in Nigeria should emphasize on more efficient policies inclined to financial development such as financing the low emissions technologies in Nigeria for better environment in the country
GENDER INEQUALITY IN LABOUR FORCE PARTICIPATION AND LIFE EXPECTANCY IN SUB-SAHARAN AFRICA
Full text linkThis study examined the effect of gender inequality in labour force participation on life expectancy in sub-Saharan Africa. Using panel data for 14 countries from 1990 to 2019, the study employed the feasible generalized least squares estimator. The results showed that female to male labour participation had a positive and significant effect on life expectancy. This implies that a decline in gender inequality significantly improved life expectancy. Thus, as more females participate in the labour force, life expectancy at birth increased. A sensitivity analysis was also conducted for robustness check using a sub-sample of countries. The result was consistent with that of the aggregate sample. Therefore, it is important that labour market policies should provide incentives towards women empowerment and increase female earning opportunities. This will improve child health and maternal health spendings thus contributing to greater life expectancy. This implies that intentional policy efforts towards improving population health should ensure that increases in credit access to investors in the health sector are substantial enough towards improving life expectancy
IMPACT OF AGRICULTURAL FINANCING ON AGRICULTURAL PRODUCTIVITY IN KABO LOCAL GOVERNMENT AREA OF KANO STATE, NIGERIA
Full text linkThe purpose of this study was to look into how agricultural loans affected farm productivity in Nigeria's Kano State, specifically in Kabo Local Government. The purpose was to investigate the influence of access to finance on agricultural productivity in Kabo Local Government Area of Kano State, Nigeria. The study used a sample size of 420 respondents. To ascertain the impact of agricultural financing on farm productivity, multiple regression analysis was employed. According to the study's findings, access to credit boosts output, but it is restricted by high interest rates and a lack of collateral security. The government should make agricultural credit more widely available to farmers without collateral security to show commercial banks. To do this, the government would supply venture capital to commercial banks, enabling farmers to borrow at reduced interest rates. In order for farmers to obtain credit from banking institutions without having to provide collateral security, the government should also encourage them to establish cooperative unions