9 research outputs found
Cyclicality of Fiscal Policy in Nigeria (1999 – 2017)
No full textThe study investigated the responses of State governments to change in fiscal policy between 1999 and 2017. The methodology employed in the study involves the use of Generalized Method of Moments (GMM) to estimate the cyclical fiscal policy which is a reflection of the systematic response of the fiscal balance of state governments to the regulatory quality of the institution of States. The results show that the fiscal institutions are rather weak and may actually also form part of the rent-seeking agents in the fiscal space as it engenders procylical fiscal policy at the second tier of government in Nigeria. The empirical findings of this study conclude that fiscal policy of State governments in Nigeria is highly procyclical. The study recommends active government intervention in the economy through the use of appropriate macroeconomic policies such as expansionary fiscal policy during the period of fiscal crunch and contractionary fiscal policy during the period of boom
Nigeria’s Domestic Debt Profile (1980 – 2017)
No full textThe study examined the Nigerian domestic debt profile between 1980 and 2017 with the use of Pooled OLS regression technique. The result indicates that holdings of Federal Government's domestic debt outstanding in the economy portends a serious fiscal crisis if the government does access greater domestic debt from the entire Banking system in Nigeria which is seen as being relatively manageable for the economy. The Nigerian is in dire need to carefully re-examine her borrowing culture locally in order to forestall fiscal crisis. Keywords: Domestic debt, fiscal crisis, banks, loan, funds
Welfare Loss and Surge in Food Commodity Prices in Nigeria
No full textThis study endogenously determines the extent of welfare loss during and after the recent economic recession in Nigeria by adopting the technique of Least Squares with Breakpoints (BREAKLS) covering 30 monthly (January, 2016 to June, 2018) data on the selected food commodity prices and CPI. Through the use of Bai-Perron tests as break type, the study revealed that the period of recession erodes the peoples’ purchasing power and hence worsens their welfare as an increase in consumers price index is influenced by greater increase in the prices of selected food commodity. Also, peoples’ welfare begins to improve as the economy begins to recover as a result of gradual fall in the prices of selected food commodity. Keywords: Inflation, Economic recession, food commodity, price, welfare
Effect of Public Debt on Economic Growth in Nigeria with or without Domestic Investment
No full textThe paper examines the effect of public debt on economic growth in Nigeria with or without domestic investment between 1981 and 2020 using a technique of Dynamic Least Square (DOLS). The findings of the study reveal that public debt in Nigeria retards economic growth through reduction in the level of investment. This indicates the possibility that the current levels of public debt in the Nigeria might not have been reducing the volume of growth but have the tendency to create a poorer macroeconomic and uncertain climate for investment. The implication is that the nonlinear relationship between debt and economic growth is a reality. It is suggested that there should be big push investment into all sectors of the economy that serve as engine of growth to the nation and whenever public debt is acquired, domestic investment must be given priority.
Keywords: Effect, Public Debt, Economic Growth, Domestic Investment, Nigeri
ENERGY EFFICIENCY MEASURES AND PRIVATE HOUSEHOLDS IN NIGERIA
No full textThe paper examines the impact of energy use on households in Nigeria. Adopting the results of the survey conducted by Ochedi and Taki, (2019) on energy efficiency in the residential neighborhoods of Kogi State, Nigeria, the findings reveal that energy measures, to a greater extent, are not efficient in private households in Nigeria. Also, a lack of awareness and regulatory challenges impede Nigeria's adoption of energy-efficient measures while a lack of confidence in energy savings, as displayed by the respondents’ level of energy efficiency measures, hinders the progress. It is recommended that stakeholders invest in renewable energy sources to build a resilient Nigerian economy, like developed countrie
Does China’s Currency Swap Agreements have Impact on U.S-dollar’s Exchange Rate in Nigeria?
No full textThis study examines the impact of China s currency swap agreements with Nigeria on U S dollar s exchange rate with naira between 1999 and 2017 using Robust Least Squares ROBUSTLS technique The results of the finding reveal that China s currency swap agreement with Nigeria tends to have a reasonable impact on the exchange rate value of U S dollar Since the existing works on bilateral currencies swap agreements between China and other countries excluding Nigeria reveal that the U S dollar dominates all other international currencies in trade settlement and with the aim of bypassing the U S dollar in international trades this study therefore provides fresh empirical evidence on the impact of China s currency swap agreements with Nigeria on the U S dollar s exchange rate and concludes that China s currency swap agreement with Nigeria will raise the exchange rate of naira and lower the value of the U S dollar with respect to Nigerian nair
Fiscal Behaviour of Subnational Governments in Nigeria: An Augmented Autoregressive Distributed LAG (ARDL) Approach
No full textPurpose: The paper examined the determinants of fiscal behavior of subnational governments in Nigeria between 1981 and 2020.
Approach/Methodology/Design: An Augmented Autoregressive Distributed Lag (ARDL) bounds test for cointegration which involves an extra F-test on the lagged level variables in the ARDL equation was employed.
Findings: The results reveal that finances of the lower level of governments in Nigeria have not been managed optimally as there appeared a misplaced priority in terms of government outlay.
Practical Implications: The implication presented in this paper is meant for the concerned authorities. The results indicate the need for the subnational governments in Nigeria to cut the overhead costs of governance by reducing the frivolous expenditures in order to curtail the incessant borrowing habit of these tiers of government locally and internationally.
Originality/value: Despite the fact that factors determining subnational fiscal behavior have been approached from diverse ideological and methodological perspectives, yet, the challenges linger on, the paper, therefore, employed sophisticated econometric technique to examine why the finances of the lower level of governments in Nigeria have not been managed optimally
Impact of Domestic Industrial Output on Economic Growth in Nigeria
No full textPurpose:
This paper examined the potential of domestic industrial output on economic growth in Nigeria.
Approach/ Methodology/ Design: An Autoregressive Distributed Lag (ARDL) model procedure was employed for data analysis.
Findings: The results revealed that the contribution of the domestic industrial output to economic growth was appalling which was necessitated by the worrisome image of “Made-in-Nigeria” goods. It was also showed that the results that domestic industrial output and domestic savings have positive relationships with real gross domestic product (RGDP) in the long run. This implies that a rise in the level of each of domestic output and domestic savings necessitated an increase in real gross domestic product (RGDP).
Practical Implication: The implication presented in this study is related to the concerned authorities. The results indicate the need for diverse domestic production in order to achieve a healthy competition in the industrial sector in the country.
Originality/Value: The study innovates by employing various statistical tools for exploring the effect of domestic industrial output on economic growth. The significant contribution of this study is in identifying that domestic production in Nigeria has been lagged behind in terms of output performance in the economy
The Effect of Value-Added Tax on Economic Growth of Nigeria
No full textThe paper examined the effect of VAT on economic growth in Nigeria between 1994 and 2020 using consumer price index (CPI) as a threshold. A technique of Threshold Vector Autoregressive (TVAR) was employed and the results reveal that a VAT above the 10 percent threshold value endangers the economy while a VAT below the 7.59 percent threshold value does not harm the economy; rather, it improves people's well-being. It is therefore recommended that Nigerian economy should maintain the lower VAT threshold to cushion the effect of ever rising CPI on the citizens
