The paper evaluates tertiary school enrolment in Nigeria: Implication for national development. The main aim of the paper is to assess the effect of tertiary school enrolment on economic growth in Nigeria. It is equally discovered that while tertiary enrolment is nominally increasing, in real terms, it is abysmally nose-diving. The analyses used for the study include the Ordinary Least Square estimation techniques, unit root test, co-integration test and the variance decomposition test to analyze the empirical model of the study. The findings of the empirical investigation confirm that tertiary enrolment is veritable tools through which appreciable economic growth can be enhanced in Nigeria. The study equally observed that tertiary school enrolment and government recurrent expenditures are statistically significant in explaining growth in the Nigerian economy. The paper therefore recommends among others that government should as a matter of urgency give immediate employment to all NCE graduate, this will encourage and increase the number of people seeking enrolment in the colleges
This study examines funding tertiary institutions and Nigerian growth perspective. The specific objective of the study is to evaluate the effect of tertiary institutions funding on national development in Nigeria. An ordinary least squares estimation technique was used in the study to evaluate the effect of the independent variables on the dependent variable. The result of experiment indicates that funding is a veritable tool for tertiary institutions growth in Nigeria. The result also shows that government capital expenditure funding is not statistically significant in the growth process. It was recommends that the government has to invest more on the education sector as well as ensuring that the resources are properly managed and used for the development of education services. The study concludes that funding of higher education in Nigeria needs to be improved upon especially in the area of capital expenditures funding. This is as a result of the increasing need and demand for specialized services in different sectors within the academic institutions.
Impact of Disaggregated Public Expenditure on Economic Growth of Selected African Countries: A Panel VECM (Published)
The study investigated the long-run and short-run equilibrium relationship between economic growth and disaggregated public expenditure in selected West African Countries with panel data spanning 1990-2017. The study employed panel co-integration based on Pedroni and Panel Vector Error Correction Model (PVECM) with Engle and Granger´s procedure for empirical analysis. The findings revealed that expenditure on infrastructure, health and education have positive impact on economic growth at about 2%, 6% and 2% respectively, but only expenditure on infrastructure is significant. Defence expenditures and education expenditures at both lags have indirect and insignificant influence on economic growth while health expenditure has direct and insignificant impact on economic growth at all lags. The study recommends policy makers to focus on developing health, infrastructure and education sectors which has not contributed significantly enough to economic growth in the selected African countries
Education and Economic Growth in South Asia (Published)
Interconnection between education and economic growth is a subject of great interest in most developing nations in the world today. This is because economic growth is one of the key indicators of the level of national development. In this study, regression analysis is applied to look into the genuine effects and the relationship between education and economic growth of the Southern Asian Countries such as Bangladesh, India, Nepal, Pakistan, Maldives, Bhutan and Sri Lanka. The methodology consists of the means of estimation and econometric analysis which help to determine the actual quantitative effects of education in economic growth especially in South Asian nations. By this, an affirmation of the relationship between the two variables can be made due to enough evidence obtained in this study.
The Relationship between Government Expenditure, Economic Growth and Poverty Reduction in Nigeria (Published)
This study examines the relationship between government expenditure, economic growth and poverty reduction in Nigeria using time series data over the period 1980-2013. Employing modern time series econometric techniques such as unit root tests, bound test co-integration approach and error correction techniques within an ARDL framework which yields more robust estimates.It is found that government spending affect economic growth positively and significantly by increasing real private investment and fixed capital accumulation which increase capital accumulation, reduction in current account deficit, external debt burden and improve education/skills of the households by improving human capital. Findings emerge from this study that government expenditure has significant short run impact on poverty reductions in its lag form in which it might be examined by the role of fiscal policy in alleviating poverty of current year in Nigeria.The study suggested policies the role of government should be extended to ensure the magnitude and the quality of private investment as high as possible.
This study empirically analyses the effects of natural capital on economic growth in Botswana using annual data from 1994 until 2016. In contrary to the existing literature, the study employed the mineral asset value as a proxy for natural capital deduced from the newly developed Mineral Accounts and Macroeconomic Indicators of Sustainable Development Frameworks. This proxy provides the inclusive wealth index of natural capital by taking into account the estimated economic value of minerals in the ground and their depletion overtime. The Autoregressive Lag Model (ARDL) employed indicates that mineral asset value used as a proxy for natural capital significantly and positively affect Botswana’s economic growth. Other determinants of growth used as regressors including human capital and foreign direct investment also have a similar effect on economic growth over the period under review. Despite government efforts to diversify the economy from minerals, the mining sector is still the backbone of the economy. The study, therefore recommends that the country should continue using its mineral revenues to diversify its assets portfolio to improve physical and human capital to achieve sustainable economic growth. The country should also adopt a new growth model where technology will be at the forefront of economic development.
The present investigation inspected the effect of fiscal approach estimated by (Government use, Government incomes, inward open obligation, outside open obligation) notwithstanding fares and swelling factors on the Jordanian GDP development. Fiscal approach assumes a huge job in a monetary arrangement because of its capacity to acknowledge objectives went for by a national economy. Its instruments are viewed as one of the primary financial devices to accomplish monetary development and beat obstructions to monetary soundness. Notwithstanding its distributional and pro impacts, financial arrangement has steadiness initiating impacts, for example, government spending and expenses which impact total interest, along these lines influencing in general monetary factors and financial development. The significance of fiscal arrangement radiates from the way that open spending is viewed as the prime drive for financial movement of a nation by affecting the dimension of total interest and subsequently monetary development. Open incomes fill in as the principle wellspring of salary for a nation while open obligation is a piece of the administration’s spending, regardless of whether inside or outer. This paper introduces a utilization of a hypothetical model to survey the impacts of monetary arrangement on financial development.
The activities of multinational oil companies in Nigeria have remained a source of controversy over the years. The study examined the impact of multinational oil companies in the economic growth of Nigeria (1960-2010). Hence, the specific objective is to ascertain the extent of economic growth impacted by the multinational oil companies in Nigeria. The study adopted a survey design. Data were obtained through secondary sources. The findings revealed that the extent of economic growth impacted by the multinational oil companies in Nigeria was significant based on the Ordinary Least Square (OLS) regression analysis result where the calculated F-statistics of 212.1293 is greater than the tabulated F-statistics of (5.35147). The study found that extent of oil contribution to economic growth in Nigeria was significant.
The Impact Of Foreign Direct Investment on Economic Growth of West African Member State’s (A Case Study Of Ecowas) (2001 – 2015) (Published)
Economic Community of West African States (ECOWAS) has been programmed to fuel economic growth of all its member nations not only through trade liberalization and common customs union but through attracting FDI inflow as well. Since its inception, it has been undergoing a series of institutional reforms to achieve its stated objectives. Against this background, this research investigates the relationship between foreign direct investment and economic growth in the Economic Community of West African States (ECOWAS). This study shall use panel data spanning 2001 to 2015. In order to achieve this, the study shall conduct empirical analyses by panel unit root, heterogeneous panel co-integration, and SUR multiple regression. Research findings from Pedroni co-integration test show that there is a cognate relationship between all the factors under investigation concerning ECOWAS region. Co-integration analysis also indicates a positive and significant relationship between variables such as financial development, FDI, domestic trade, and trade openness, while unemployment and social unrest negatively relates to economic growth, though unemployment is not statistically significant. For the sake of caution, this study uses a SUR multiple regression for the robustness test. Empirical result shows FDI strongly relates to economic growth in ECOWAS nation. The results are in consonance with the previous theories on growth-FDI modeling. The research findings suggest that ECOWAS members should provide a conducive and enabling environment to attract a free flow of FDI into their economy.
Science, Technology, Engineering and Mathematics (Stem) Education: A Catalyst for Entrepreneurship and Economic Growth in Nigeria (Published)
Equipping learners with the 21st century skills is the current pursuit of nations of the world wishing to maintain global leadership and cutting-edge economic competitiveness. These nations now see Science, Technology, Engineering and Mathematics (STEM) education as an option for equipping their up-coming generations with problem solving skills and potentials for becoming innovators and entrepreneurs of tomorrow. This paper explains the concept of Nigerian economic recession and its remote causes. It also explains the STEM education as a meta-discipline which is taught as an integrated subject abroad but is yet to take root in Nigeria. The author presents STEM education as the foundation for innovation, entrepreneurship and work place skill required to boost the economy of Nigeria so as to diversify her economy from oil dependence and combat youth unemployment. It concludes with suggestions of what Nigeria ought to do at this time to reposition STEM education to achieve economic recovery.
Empirical Investigation of Human Capital Investments and Its Effect on Economic Growth In Nigeria (1990-2017) (Published)
The study examined the empirical investigation of human capital investments and its effect on economic growth in Nigeria; for the period 1990-2017. Secondary data were used and collected from Central Bank of Nigeria Statistical Bulletin. The study used Gross Domestic Product (GDP) and was employed as the dependent variable to measure the human capital investments on economic growth in Nigeria; whereas, government expenditure on health and government expenditure on education were also used as the independent variables to measure human capital investments in Nigeria. Hypotheses were formulated and tested using Ordinary Least Square econometrics techniques. The study showed that government expenditure on education had a significant effect on Gross Domestic Product in Nigeria. Government capital expenditure on health sector had a significant effect on Gross Domestic Product in Nigeria. The coefficient of determination indicated that about 69% of variations in Gross Domestic Product can be explained by changes in government capital expenditure variables in Nigeria. The study concluded that human capital investments had a significantly effect on economic growth in Nigeria. The study recommended that Government should ensure proper management of human capital expenditure in a manner that will promote growth and development in the economy. The government and policy makers should increase its investments in health and education; since, it would increase the level of development in the economy as well as the standard of living. Government should encourage and manage the funding of the education and health sectors. The policy makers should ensure that appropriate evaluation techniques should be used for projects that will ensure that capital expenditure is not made in an extravagant manner.
Does The Export-Led Growth Hypothesis Hold For Nigeria? Empirics from Toda-Yamamoto Granger-Causality Framework (Published)
This study empirically analyzed the relationship between export and economic growth. Specifically, the study examined the validity of the Export-Led Growth Hypothesis in Nigeria employing the Toda-Yamamoto Granger Causality framework. The result shows that there is unidirectional causality running from export to economic growth. This implies that the causality running from export to economic growth is the strongest, revealing that export-led growth hypothesis holds for Nigeria. This suggests that encouraging export is necessary in stimulating growth. It is therefore imperative for government to put policies in place to stimulate the production in the non-oil sectors of the economy. This would assist in encouraging exports and discourage imports.
Economic Integration, Incentives and Non-Oil Export Dynamics in Nigeria: An Empirical Evidence (Published)
This study is a response to the under-performing trend in the non-oil sector of Nigeria which is supposedly a catalyst for massive industrialization and rapid development concerns in a less developed country such as Nigeria. Arguments bordering on the perceived plausibility of trade liberalization and government incentives vis-à-vis non-oil export performance were empirically tested using contemporary econometric techniques of unit root test, co-integration test and error-correction mechanism. Results from the tests conducted revealed a one year positive lag relationship between variables such as foreign private investment, exchange rate, gross domestic product and non-oil export growth. Contrary to theoretical expectation, an inverse relationship was found to exist between a one year lag in agricultural credit guarantee scheme fund and non-oil export performance while, world gross domestic product exerted no significant relationship with non-oil export growth in Nigeria. However, the error correction model revealed a slow speed of dynamic adjustment from short-run to long-run equilibrium and as such, the study recommended among others, a re-examination of the agricultural credit guarantee scheme fund to ensure a positive contribution to non-oil sector development, increasing incentives that stimulate non-oil investment and also maintaining a favourable exchange rate. These policies, if implemented, will assist in unlocking the existing potentials in the Nigerian non-oil sector.
This paper examines whether economic performance indices of nations signals accrual accounting reform or whether they have random effect. The secondary analysis of accrual accounting data distilled from the report of the PWC global survey of accounting and financial reporting practices of 100 central governments was done using the logistic multiple regression model. Economic performance proxied by gross domestic product per capita positively signaled the likelihood of accrual accounting reform with OECD countries 10 times more likely to implement full accrual accounting than non-OECD countries. Growth rate of gross domestic product and debt as percentages of gross domestic product both negatively signaled the adoption accrual accounting reform while tax revenue as percentage of gross domestic product returned a mixed result. The results suggest that poorer non-OECD countries may be constrained by the cost of implementing accrual accounting reform and may therefore require assistance of multilateral development institutions. This study provides empirical evidence of some of the constraints militating against accrual accounting reform that have been canvassed in the literature.
Investment Climate, Domestic Private Investment, and Economic Growth in Sub-Saharan Africa (Published)
The environment in which an enterprise operates influences its performance. This paper investigates the relationship among investment climate, private domestic investment and economic growth in 44 sub-Saharan Africa countries over the period 2004-2015. It uses eight indicators of Doing Business and a set of control variables. Although the results show a robust link among investment climate indices, domestic private investment and economic growth, however, getting electricity, tax and registering business indices had negative effects on economic growth. This finding suggests that government and policymakers should ensure a functioning and enabling investment climate, complimented by strong competitive policies and measures in order to promote private domestic investment for positive economic growth in sub-Saharan Africa countries.
This study examined the impact of capital flight on the Nigerian economy from 1986-2016 Real Gross Domestic Product and Capital Flight were used as the endogenous variables while Political instability, Amount of Looted funds, Interest Rate Differentials, Expenses on Foreign Medical Services and Education Abroad and Domestic Investment were the explanatory variables. Data for these variables were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, World Bank Development Index, Economic and Financial Crimes Commission Bulletins, Tertiary Education Trust Fund Publications and the Federal Ministry of Information Annual Briefings and Extracts (various editions). The variables were found to be integrated of mixed order hence we confirmed the long run relationship existing among the variables using the Bounds test. The simultaneous equation model shows a negative and significant relationship between capital flight and economic growth. Domestic Investment and Interest Rate Differential both have positive relationships with Real GDP while Political Instability, looted Funds, Expenses on Foreign Education and Medical Services were found to have positive and significant impact on Capital Flight. The implication of these findings is that Capital flight have negatively impacted on Economic growth of Nigeria with Foreign Education and Medical Expenses and Looted Funds being the major channels through which huge capital leave the country. It was recommended that our education and health infrastructures should be adequately funded and maintained. Also, the government should ensure good governance and prosecution of corrupt officials in order to discourage capital and encourage domestic investments.
This study x-rayed agricultural sector as the engine of economic growth in Economic Community of West African Countries (ECOWAS); more so as the agricultural sector employs over 70% of the labour force and provides the means of livelihood for the greater population in the region. Furthermore, it is the believe that improvement in the agricultural sector productivity will likely enhance the per capita GDP growth of the ECOWAS. Data was collected using documentary evidence (secondary data). Time series methods of analysis such as panel unit root tests, panel co-integration test, panel co-integration regression method using fully modified ordinary last squares (FMOLS) model were employed for the analysis. The variables analysed include the GDP per capita (the dependent variable) and agricultural sector output per capita, capita stock per capita, industrial sector output per capita, services sector output per capita and government expenditure per capita (independent variables). The results established that agricultural sector output per capita, capita stock per capita and economic institutions exert no significant impact on per capita GDP of ECOWAS. However, government expenditure, industrial sector output and service sector output, all measured on per capita basis, significantly impacted on ECOWAS countries per capita GDP growth. The study concluded that only Government provision of services per capita, and industry sector output per capita significant stimulated growth in ECOWAS countries. Capital stock per capita and economic institutions did not. The study recommended efficient resources investment and functional institutions to further promote growth in the ECOWAS countries.
The Impact of Foreign Direct Investment and Import, Export on the Economic Growth of Pakistan: An Empirical Study (Published)
Purpose: The aim of this paper is to analyze the impact of foreign direct investment (FDI), export (EXPO) and import (IMP) in the economic growth of Pakistan from 1990 to 2015. Design/methodology/approach: The link of foreign direct investment (FDI), export (EXPO) and import(IMP) with economic growth is measured through multiple regression model. Foreign direct investment (FDI), export (EXPO) and import (IMP) treated as regrassors and gross domestic product (GDP) treated as regressand in this model.Eviews software used to analyze the annual time series data from 1990 to 2015. Findings: According to the findings, there is a negative and insignificant association between foreign direct investment (FDI) and GDP while there is significant and positive relationship found of export (EXPO) and import (IMP) with GDP. Originality/value: The empirical findings of this research play a vital role for policy maker of Pakistan in formulation of FDI and trade policies.
The crash of crude oil price has devastated Nigerian economy being a mono-product economy. The nation’s reserves have dropped and the Central Bank is finding it difficult to meet its import demands. There is agitation from investors and the IMF to devalue the currency to stimulate economic growth, encourage export and discourage import. The public thinks otherwise. The study revealed devaluation of the naira will not encourage significant demand for local goods but rather rise in the prices of local products which rise in direct proportion with imported substitutes thereby fuelling inflation. Also, the economy has remained neither diversified nor internationally competitive. It is recommended among others that government review the current import tariffs, promote incentives to encourage investment in local manufacturing, direct foreign direct investment (FDI) on manufacturing/productive industries with hundred per cent (100%) local raw materials and tax holidays.
This study examines empirically the relationship between Trade openness and Economic growth in Nigeria. The study covered the period 1990 – 2015, using ARDL approach to cointegration. The ARDL result confirmed the existence of a long-run relationship between Economic Growth, Trade Openness, Foreign Direct Investment and Gross Capital Formation. It was found that Trade Openness and Gross Capital Formation had positive and negative impacts respectively on growth rate of GDP in the short run. Therefore, this study concludes by recommending that; (i) trade openness should be regulated by government; from our result an increase in trade openness caused a decrease in our GDP (ii) FDI should be encouraged as it was seen to have significantly improved economic growth in Nigeria.