Tag Archives: Economic Development

An Appraisal of Nigeria’s Micro, Small and Medium Enterprises (MSMES): Growth, Challenges and Prospects. (Published)

This paper took a critical appraisal of the Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The major focus of this work was to expatiate on the growth, challenges and prospects of the MSMEs in the country. While attempting to give an appropriate definition for Micro, Small and Medium Enterprises using employment strength and asset base criteria, the work revealed that SMEs contribute significantly to economic development in the provision of goods and services, creation of employment and contribute to a high standard of living. There are some setbacks facing the over 17,284,671 Micro, Small and Medium Enterprises in Nigeria. These setbacks include; limited financing, lack of action plan to deal with eventualities, lack of managerial and marketing skill, and lack of research appreciation and technical expertise. The study concluded that entrepreneurship is regarded as the catalyst in most developing economies and that it is very crucial to the economic growth and development of Nigeria. As such, it was recommended that government policies should support the establishment, nurturing and growth of SMEs by curtailing or banning importation of certain products, training of young entrepreneurs, establishment of Centers for Entrepreneurial Development and promoting entrepreneurial spirit through the provision of conducive entrepreneurial environment, funding and empowerment programmes. This will facilitate the training and retraining of entrepreneurs and also help Nigerian youths to develop interest in entrepreneurship.

Keywords: Economic Development, Micro, Nigeria, Small and Medium Enterprises, Technical Expertise

Constraints to Agricultural Development in Nigeria (Published)

The role of agriculture in accelerating economic growth and development process of any nation cannot be overemphasized. However, in Nigeria, the sector has suffered severe neglect, due in part, from the windfall from the discovery of oil in the 1970s and other structural rigidities. The study investigated the constraints to agricultural development in Nigeria using time series data spanning the period 1970 – 2010 and contemporary econometric methods of unit root test, co-integration and error-correction mechanism. Empirical findings reveal that rainfall, exchange rate and food export (lag one) are the most significant positive determinants of agricultural output in Nigeria. However, food imports, diversion of funds meant for agricultural purposes and low technology diffusion in agriculture are among the factors identified as constraints to agricultural development in Nigeria. The study recommends among others, maintenance of stable and favourable exchange rate regime, and the pursuance of programmes that will bolster partnerships between research institutions and other stake holders in agriculture as a route to facilitating agricultural development and hence, economic development in Nigeria.

Keywords: Agricultural Constraints, Agricultural Development, Economic Development, Food Export

Russian Interest in Central Asia in Natural/Energy Resources (Published)

Natural/energy resources are considered as the key factors of the nation’s economic development. In the modern world, energy has been considered as the lifeline since it is required in almost every human activity. In order to support national development, any country wants to exploit as much natural/energy resources as possible (Skipka and Theodore, 2014). The powerful countries are not only using their own resources but also paying interests to resources of other countries. This assessment tires to critically explore Russian interest in Central Asia in natural/energy resources.  

Keywords: Asia, Economic Development, Energy, Russian, resources

Exports-Led Industrialisation and Development through National Re-Branding and Best Practices: A Comparative Study of Botswana and Zimbabwean Economies (Published)

The purpose of this study was to look at the challenges facing Zimbabwe’s economy compared to Botswana and determine re-branding strategies Zimbabwe can adopt to portray a positive image. Case studies of countries whose economies miraculously recovered were given, they include countries like Korea, China, Japan, Taiwan and Malaysia. Document reviews and in-depth literature review were used to collect data. The findings of the study revealed challenges related to policy issues, corruption, relations with western countries over the land reform programme, corporate governance issues, and macroeconomic fundamentals such as government spending priorities, the country’s credit rating, judicial independence, and property rights. These were some of the factors that contributed to the meltdown of the Zimbabwean economy. The study recommended that Zimbabwe needs to re-establish relations with the west, ensure independence of the judiciary system, ensure property rights to attract foreign investment, improve corporate governance issues, and monitor its macroeconomic fundamentals.

Keywords: Economic Development, Export Led Strategies, Re-Branding, economic growth

The Implementation Of Oil Palm Based Regional Innovation System (Sida) In Supporting The Masterplan For The Acceleration And Expansion Of Indonesia’s Economic Development (Mp3ei) Of The Economic Corridor Of Sumatera-Indonesia (Published)

The purpose of the research is to determine the Implementation of Oil Palm Based Regional Innovation System (SIDA) in Supporting the Masterplan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3I) of the Economic Corridor of Sumatera. It is a qualitative-descriptive research. The population in this research was the residents of Desa Mangkei Lama and Desa Mangkei Baru for 150 families. The sampling was conducted by using the purposive random sampling technique with certain criteria. The minimum sample size in this study was 30 respondents. With the Special Economic Zone (KEK) of Sei Mangkei which cultivates the oil palm it produces the CPO but not fully distributed yet. Many distributed oil palm products still need to be developed into a large-scale laboratory scale industry. The growing oil palm nursery on the developed village which is a supplier of seeds for the oil palm plantations. The developing Cooperative of oil palm midribs based Cattle feeds that supplies the feed for the cattles, Excelent Calves and Bio Gas. The plantation community empowerment through the Biomass stove using the Shells and Briquets. The Oil Palm plantations produce CPO but not fully distributed yet. Many distributed oil palm products still need to be developed into a laboratory-scale industrial scale.

Keywords: Economic Development, Oil Palm, Regional Innovation, Special Economic Zone

THE SYSTEMATIC LITERATURE REVIEW AND RESEARCHES ON DEVELOPMENT OF MICROFINANCE INDUSTRY IN INDIA (Published)

Microfinance is the array of financial services, including loans, savings and insurance, available to Poor entrepreneurs and small business owners who have no collateral and would not otherwise qualify for a standard bank loan. Recent proliferation of microfinance market has swiftly increased the competition in microfinance Indian market, new technology and new devices are emerging at phenomal speed. As the number of microfinance application is increasing at daily rate, quality is becoming major issue. So microfinance system organization need some quality model as guideline to improve and maintain quality of application under development .microfinance application mainly depends on users response and user acceptance so they need maintainability, usability, suitability etc. this research paper presents microfinance recent development model focusing on key quality characteristics. This study is applicable in the context of social development at this time when social services delivery is not only poor but at dismal level. Recent proliferation of microfinance market has swiftly increased the competition in microfinance developmental Market, new technology and new devices are emerging at phenomenal speed. As the number of microfinance applications is increasing at daily rate, quality is becoming major issue. So Microfinance industries need some quality model as guideline to improve and maintain quality of application under development. MicroFinance market mainly depends on poor people of loan response and poor people of loan acceptance so they need maintainability, usability, suitability etc. This research paper presents microfinance market quality model focusing on key quality characteristics mainly extracted from excellent standard quality model, which effect quality of microfinance market. This paper aims to provide a synthetic review of the literature on the Microfinance and development. Systematic Review of literature (SLRs) justifies the reason for our research. It demonstrates the topic. It narrates a brief elaboration of prior studies. Prior research will help us to ensure that we have included all of our major relevant constructs in our study. It talks about the knowledge of our field which allows us to identify the gap which our research could fill and also strength’s the topic that we chosen for our research. The literature review will help us to find and select appropriate measurement instruments. (P.Shakila, 2014) The literature review is needed because it is a necessary skill both for researchers and for practitioners of a profession which claims to be founded on a knowledge base and also to locate and summarize the findings of research on a given topic not uncritically but assessing the evidence and for argument to sustain the conclusions. It is also useful to obviate the need for fresh research or to replicate the study. (P.Shakila, 2014) Polit and Hungler in the year (2001) stated that the term “Literature Review” is often used to cover both the process of searching for relevant literature and the critical reporting of the literature. Cormack in the year (1991) stated that “Literature Review” means to systematically read, critically appraise, and then synthesize the material into a coherent, structured, and logical review of the literature. This paper presents a systematic review of the current use of those modern microfinance developments for the microfinance systems and their actual level. Microfinance modern recent development prediction is a significant part of microfinance quality assurance. A problem is microfinance is to expect the possibility that the microfinance contains problem. Problem in microfinance system are major problems that need to be resolved. The problem prediction in microfinance system is significant because it can help in directing test effort, reducing cost, and increasing quality of microfinance development and its reliability .in this research paper I have studied various predictions, examined, & the performance of these recent microfinance development of India. The main aim is to examine the performance of recent development of microfinance in microfinance a problem prediction. Problem prediction using these techniques helps in improving the quality of the microfinance recent development

Keywords: Development, Development Quality, Economic Development, Economic Development Attitude, Entrepreneurship Development, Evaluation and effectiveness of Microfinance, India Economy, Microfinance Institutions, Microfinance and Development, Satisfaction of Access & Rights to Justice of Poor People, Systematic Literature Review, Systematic Review

VOCATIONAL AND TECHNICAL EDUCATION: A VIABLE TOOL FOR TRANSFORMATION OF THE NIGERIAN ECONOMY (Published)

Vocational and technical education has been integral part of national development strategies in many societies because of the impact on human resource development, productivity and economic development. It holds the key to national development of most nation’s. However, despite its contribution to societal and economic development, Nigerian leaders have not given this aspect of education the attention it desires. This could be one of the reasons for the nation’s underdevelopment. This paper attempts to examine the concept of vocational and technical education, objectives of vocational and technical education, image of vocational and technical education in Nigeria, the importance and role of vocational and technical education in economic development and challenges of vocational and technical education in Nigeria. The paper concludes that through vocational and technical education youths as well as adults will be trained to acquire skills, attitude and knowledge which are needed for the economic growth of our nation. The paper therefore recommends that the nation must invest copiously in education with particular attention given to vocational and technical education.

Keywords: Economic Development, Nigeria, Skill Acquisition, Vocational and Technical Education.

Savings And Credit Cooperatives (Sacco’s) Services’ Terms and Members’ Economic Development in Rwanda: A Case Study of Zigama Sacco Ltd (Published)

The purpose of the study was to find out the contribution of SACCO services’ terms on members’ economic development using ZIGAMA as a case study. The study was based on three specific objectives, that is, to examine the nature of services’ terms at ZIGAMA, to assess the effect of savings services’ terms on members’ economic development at ZIGAMA and to analyze the effect of credit services’ terms on members’ economic development at ZIGAMA. To achieve these objectives, the study adopted a cross sectional, correlational and survey research designs. Data were collected through questionnaires, face to face interviews and observation methods. Data were analyzed by use of statistical methods, (descriptive statistics, Correlations and regressions analyses). The findings revealed that ZIGAMA attaches terms on its services which are annually reviewed by its board members. The services’ terms however are not properly communicated to members. Further, results indicated that savings services’ terms were moderately favorable to members and there was a strong positive and significant relationship between savings services’ terms and members’ economic development and also a significant influence of saving services terms on members’ economic development. Results also indicated that credit services terms were also moderately favorable to members and there was a strong positive and significant relationship between credit service terms and members’ economic development and also a significant influence of credit service terms on members’ economic development. It was concluded that ZIGAMA had services terms in place but were not being communicated properly to members and their review was not involving all stakeholders. It was further concluded that SACCO’s services terms significantly predict variations in members’ economic development. Recommendations were that ZIGAMA should involve all stakeholders in the review of the service terms and the same terms should be properly communicated to all those concerned and should allow its members to withdraw their savings as needed and the minimum balancee should be friendly to the members.

Keywords: Economic Development, Members’, Rwanda, Savings And Credit Cooperatives (Sacco’s) Services, Zigama Sacco Ltd, ’ Terms

FISCAL FEDERALISM AND ECONOMIC DEVELOPMENT IN NIGERIA: THE CONTENDING ISSUES (Published)

An enquiry into the economies of such federations as the United States, Canada and Germany suggests that federalism is compatible with economic success. Such a proposition is, however, unsustainable considering the fact that India, Mexico and Nigeria, which are also federal states, have continuously performed poorly, reinforcing the view that a major explanation for the poor economic performance of the countries in the latter category lies in the manner in which their respective federal systems are operated. This paper therefore brings to the fore the nexus between Nigeria’s fiscal federalism and a lack of economic development in the oil-rich country. Our central argument is that Nigeria’s fiscal federalism has not spurred the desired development as envisaged by the architects of the system. The country’s over-dependence on oil, as well as the concentration of economic resources at the federal centre are at the heart of the country’s lack of economic success. Therefore, if Nigeria’s fiscal system is to achieve its economic objectives, the inherent contradiction manifesting in the over-centralisation of the federal system has to be addressed

Keywords: Economic Development, Fiscal federalism, Nigeria, Political Economy

CO INTEGRATION: APPLICATION TO THE ROLE OF INFRASTRUCTURES ON ECONOMIC DEVELOPMENT IN NIGERIA (Published)

The study appraised the role of infrastructure on economic development in Nigeria measured by the gross domestic product while the infrastructure is measure with the capital expenditure on Transportation & communication (TRC), Education (EDU) and Health (HLT) respectively for a period of 32 years (1981-2013). Using least square (OLS), we find out that, the measure of coefficient of determination shows that about 95.11% of variation in GDP can be explained by infrastructure. The regression model explain that a unit increase in Transport &Communication(TRC) and Education(EDU) will increase GDP by 237% and 174% respectively, while the Health(HLT) will reduces the GDP by 31%. The residual of the regression model is stationary, when subjected to the unit root test and the Johansen co integration test show that two of the equation is co integrated. From this, it can be affirmed that the regression model are not spurious. The co integrating equation also suggesting that the GDP adjust to change in capital expenditure on infrastructures in the same time period and shows that short-run change in TRC and EDU have negative impact on short-run change in GDP but only HLT has positive impact on GDP in the short run.

Keywords: Co-integration, Economic Development, Infrastructure, Regression Model

FINANCIAL LITERACY EDUCATION: KEY TO POVERTY ALLEVIATION AND NATIONAL DEVELOPMENT IN NIGERIA (Published)

Ensuring that all societies’ young people become financially capable is now widely seen as a necessary key pillar in helping Governments build economic stability in the future. The ability to read, analyze, manage, and communicate about the personal financial conditions that affect material wellbeing is of utmost importance. Being able to manage money, keep track of personal finances, plan ahead, choose financial products and stay informed about financial matters enable the avoidance of financial disaster. This research constitutes an essential component of the theory of the strategy of financial literacy framework which articulates a strategic direction for the delivery of financial education in Nigeria. Financial literacy education is very important because the journey to obtain independence and achieve financial success cannot just be prioritized by having good educational experiences, a sound résumé and a career with a nice salary. Rather, the financial freedom road requires development of good financial habits, practice and discipline. This work adopts a secondary data approach which critically examines Nigeria’s financial literacy education framework, the significance of financial literacy education, steps for best practices in financial education and awareness, and the challenges to building sustainable financial literacy education systems. It finds that promoting financial literacy among Nigerians provides them with the essential knowledge and financial responsibility to make decisions that will better their lives and ultimately grow the economy. This is because as financial markets become increasingly sophisticated and as households assume more of the responsibility and risk for financial decisions, financial education is increasingly necessary for individuals, not only to ensure their own financial well-being but also to ensure the smooth functioning of financial markets and the economy. The paper therefore strongly recommends, amongst others, the involvement of all tiers of government as well as key institutions and the private sector in the design and implementation of financial literacy programmes across all segments and sectors of the economy.

Keywords: Economic Development, Education, Financial freedom, Financial literacy, Nigeria

RELATIONSHIP BETWEEN RAIL TRANSPORT AND ECONOMIC & SOCIAL LIFE OF A COUNTRY (CASE ALBANIA) (Published)

This paper aims to identify the perception of Albanian citizens about the effects that a developing rail transport would give in the future. On the other hand, identifying the fields where rail transportation will be more influential according to consumer`s opinion is another important goal. To achieve these objectives a questionnaire was given to about 500 respondents. The result of the paper showed that the development of Albanian Railway would play an important role in economic and social development of Albania.

Keywords: Albanian Railways, Albanian transportation, Economic Development, Social Development, VIII Corridor

ALBANIA, MACEDONIA AND RAILWAY CORRIDOR VIII, AS A GOOD OPPORTUNITY FOR ECONOMIC DEVELOPMENT (Published)

This paper aims to identify the role of railway transport in economic development in Albania and Macedonia. It also aims to identify the importance of Railway Corridor VIII as a good opportunity to reduce costs of transport and shortening distance of travelling for freight trains. The future of railway transport is considered golden. Railways transport is considered as an effective and ecological transport, factors these which can be used in their marketing. Yet are issues related to high technology, their accuracy, providing good service and affordable tariffs that serve as attractive in the development of railways

Keywords: Albanian railway, Albanian transportation, Economic Development, Macedonian Railway, Social Development, VIII Corridor

The Determinant of Intellectual Property Protection in Developing Countries: Does Absorption Capacity Matters (Review Completed - Accepted)

The rise of knowledge economies and the Trade Related Intellectual Property Rights Agreement (TRIPs) move the IPR question to the core of nation’s industrial policy. In this paper we investigate the determinants of Intellectual Property Rights policy in low income developing countries and compare them to those of middle income ones. We assess whether absorption capacities, the economic freedom, the human capital and the level of economic development matters in determining the intellectual property policy. We find that the levels of economic development as well as the capacity of technology absorption, the TRIPs agreement and the economic freedom are the main variables explaining the level of the Intellectual property protection. Thus our main result concerns the importance of absorptive capacity for developing countries in building their technology base. We stress that without well-developed technological capacities any country would not be incited to protect effectively the property rights. This is due to the high enforcement costs and administration as well as the weak level of innovation and hence patent request. The policy implication of this finding is that prior to any agreement concerning property rights two factors are essential: well-developed technological basis as well as absorptive capacities. These two factors contribute to generating small and incremental innovation and creating a demand for protection that could outweigh the management costs of IP. Thus, the developed countries should operate on the factor affecting the intellectual property through technology transfer regime rather than on the level of protection itself through international agreements

Keywords: Absorptive capacity, Economic Development, Intellectual Property Rights, technological innovation

The Role of Stock Exchange in Economic Development and Capital Formation In Nigeria (Review Completed - Accepted)

This paper examines the functions and the expected role of the Nigerian Stock Exchange in economic development and capital formation in Nigeria. It adopted a survey method of analysis to show the relationship between the operations of the stock exchange and the level of capital formation in economic development in Nigeria. The objective of the study is to find out if the stock Exchange plays a significant role in capital formation and overall economic development of the various sectors of the economy. It is deserved that while the stock exchange in developed economies are vibrant agents of development, the contributions of stock exchange in developing countries are described as being a little above border line. Conclusions were reached among other things that though the stock exchange plays a very important role in the economic development of a nation, the extent to which an exchange will be able to play this role depends on the state of the economy. The paper thus recommends an expansion in the stock exchange role in the capital formation process.

Keywords: Capital Formation, Economic Development, Nigerian Stock Exchange, Stock exchange market, economic growth

Richard Cantillon’s Ideologies and its Implications for Economic Development in Nigeria (Published)

This paper examines and ascertains how the contributions of Richard Cantillon have been relevant to the development of the Nigerian economy. In doing this, the economic thoughts of Richard Cantillon were critically examined in order to see how these issues raised have been affecting the Nigerian economy. Political economy and descriptive approaches were used to x-ray the relevance of Richard Cantillon’s contributions to Nigeria’s development. His contributions among others include: the nature of wealth, social and economic organization of people, wages of labour, theory of values, population problems and the use of gold and silver, barter, prices, circulation of money, interest, foreign trade, foreign exchange and banking and credit. The findings of the study revealed that these contributions are of great relevance to economic development in generally, but have not specifically contributed to the development of Nigerian economy. This is seen in the areas of low per capita income, negative attitude to work, inevitable population problems, persistent increase in prices, high lending interest rate, unfavourable terms of trade, incessant and diversion of public funds into private business rather than the real economy, and without doubt Nigeria has no place in foreign trade. Based on the foregoing, it was concluded that all these ugly trends accounted for the reason why economic development is not at sight in Nigeria. Thus, it was recommended that the monetary authorities should initiate sound monetary policies. Also, these monetary policies should be complemented with effective fiscal policies in order to put the Nigerian economy back to path of economic growth and development.

Keywords: Economic Development, Exchange Rate, Fiscal Policies, Foreign Trade, Interest Rate, Monetary Policies, Money Supply, Wages of Labour

The Effect of Business Incubation in Developing Countries (Published)

The aim of this paper is to review the literature and show the strength and weakness of business incubation in developing countries. This paper is based on a wide literature review, focused on the identification of the incubators as tool for economic development. We found that 1) business incubators provide support for start-up companies, 2) graduated companies tend to have a greater probability of success and 3) graduated companies have a significant positive impact on economic development. These findings can help policy makers, governments, and practitioners with their implementation in incubator programs, leading to better planning and a greater chance of success. This paper contributes to enhance the understanding of the strategic implementation of incubator models in developing countries and provides useful information to both academicians and practitioners who are interested in incubator programs.

Keywords: Economic Development, Incubators, Strategic, developing countries