Tag Archives: economic growth

Cashless Policy and the Performance of Deposit Money Banks in Nigeria (Published)

The main objective of the study is to investigate the effect of cashless policy on the performance of deposit money banks in Nigeria (2009-2018). The specific objectives are to: Investigate the effect of automated teller machine, examine the effect of point of sale, assess the effect of mobile banking, and to examine the effect of internet banking respectively on the performance of deposit money banks in Nigeria. We employed Econometric techniques involving Descriptive Statistics, Augmented Dicker Fuller and Philip Perron Tests for Unit Roots and the Autoregressive Distributed Lags (ARDL) for cointegration and coefficient analysis. The result of the study indicates that Automated Teller Machine (ATM) and Internet Banking each has a positive and significant effect on return on equity (ROE). Point of Sale (POS) has a positive but insignificant effect on return on equity, while Mobile Banking (MB has a negative and statistically significant effect on ROE, The study thus concludes that cashless policy has positively affected the performance of money deposit banks in Nigeria. The study recommends that government should provide uninterrupted power supply and adequate communication link while shortfalls should be covered by banks through back-up arrangement to power standby generator in case of power outage.

Keywords: Automated Teller Machine, Internet Banking, Nigeria, economic growth, mobile banking, point of sale

Analysis of the Effect of Exchange Rate Fluctuation on the Manufacturing performance in Nigeria (1981 – 2018) (Published)

Theoretically, and indeed empirically it has been postulated that Exchange Rate fluctuations has had a significant effect on manufacturing performance in terms of output growth and contribution to the Gross Domestic Product (GDP). This study aimed to examine the Exchange Rate fluctuations on manufacturing performance in Nigeria over a period of 37 years (from 1981-2018), using annual data obtained from collected from CBN, NBS and Index Mundi Nigeria. An ARDL approach was used for the analysis. The empirical results of the study shows that an exchange rate volatility has negatively affect the performance of the Nigerian manufacturing sector as can be seen from the from the respective coefficients of the estimated variables, , the long run relationship analysis and the causal relationship between the dependent and the independent variables. The study recommends encouraging and improving exchange rate stability in Nigeria as this may help improve the capacity of the country’s manufacturing sector, hence expand its contribution to GDP growth.

Keywords: Nigeria, ardl model, economic growth, exchange rate fluctuations, manufacturing performance

Relevance of Tax Revenue and Economic Growth in Nigeria (2008-2018) (Published)

This study aims at investigating the relevance of tax revenue in driving economic growth in emerging market economy context. . Using data extracted from central bank of Nigeria statistical bulletin for various years and auto-regression estimation model, our study documents the existence of significant and positive relationship between petroleum profit taxes (PPT), Company Income Tax (CIT) on economic growth in Nigeria. Our findings further reveal that Value Added Tax (VAT) and Custom –excise duty (CED) exert negative influence on economic growth. However, the study provide evidence that VAT and CED  are insignificant in determining the economic growth in emerging market economy context with special interest in Nigeria This study provide further evidence that the higher the amount of tax revenue generated, the higher the level of economic growth   in the economy. There is a recommendation therefore that strong institutional reforms are panacea to prevent leakages of revenue from VAT and CED. 

Keywords: Company Income Tax, Nigeria economy, Petroleum Profit Tax, Value Added Tax, economic growth

Tax Revenue Volatility and Economic Growth in Nigeria (Published)

Over the years Nigeria has experienced downward slope in its productivity and economic growth. This is evident in the country’s inability to deliver on national plan, high rate of unemployment, poor road networks, low quality education and low standards of living. In all these, studies have shown low and unsteady revenue generation in the country. This study investigated tax revenue volatility on economic growth in Nigeria, using inflation and exchange rates as moderating variables. This study adopted ex post facto research design. Data were obtained from certified sources; namely, National Bureau of Statistics, Central Bank of Nigeria Statistical Bulletin and Federal Inland Revenue Services for the 1981Q1-2017Q4, amounting to one hundred and eight (108) observations. Data were exposed to the scrutiny of the appropriate regulatory agencies for validity and reliability. Pre-estimation tests were conducted using Pearson correlation and stationarity tests. The post-estimation tests included linearity, Heteroskedasticity, Breusch-Godfrey serial Correlation Lagrangian Multiplier and stability test. Data were analyzed using both descriptive and inferential statistics. Findings revealed that tax revenue volatility moderated by inflation rate and exchange rate had significant effect on economic growth (EG) in Nigeria (Adj. R2 =0.6, F (3, 105) =2140.285, p <0.05; β1 = 0.219). This study concluded that tax revenue volatility affects economic growth in Nigeria. It was recommended that government should formulate tax policies that will encourage steady tax revenue. In addition, government should ensure prudent application of tax fund to the development of infrastructure that would translate into economic growth.

Keywords: Tax Revenue, economic growth, gross domestic products, tax bribe, tax compliance costs, tax penalty, tax volatility

Petroleum Profit Tax Volatility and Economic Growth in Nigeria (Published)

Nigeria has experienced downward slope in its productivity and economic growth. This affects the macroeconomic environment as it is evident that the country has challenges in fixing their roads, challenging in achieving national plan, high rate of unemployment, low quality education and low standards of living. In all these, studies have implicated low and unsteady revenue generation in the country. This study investigated petroleum profit tax volatility on economic growth in Nigeria, using inflation and exchange rates as moderating variables. This study adopted ex post facto research design. Data were obtained from certified sources; namely, National Bureau of Statistics, Central Bank of Nigeria Statistical Bulletin and Federal Inland Revenue Services for the 1981Q1-2017Q4, amounting to one hundred and eight (108) observations. Data were exposed to the scrutiny of the appropriate regulatory agencies for validity and reliability. Pre-estimation tests were conducted using Pearson correlation and stationarity tests. The post-estimation tests included linearity, Heteroskedasticity, Breusch-Godfrey serial Correlation Lagrangian Multiplier and stability test. Data were analyzed using both descriptive and inferential statistics. Findings revealed that Petroleum profit tax volatility had positive and significant effect on EG in Nigeria (R2 = 0.56, β1 = 0.422, t(107) = 6.927, p<0.05). This study concluded that Petroleum profit tax volatility affects economic growth in Nigeria. It was recommended that government should formulate tax policies that will encourage steady tax revenue. In addition, government should ensure prudent application of tax fund to the development of infrastructure that would translate into economic growth

Keywords: Petroleum Profit Tax, Tax Evasion, Tax Revenue, economic growth, gross domestic products, petroleum profit tax volatility, tax volatility

Causal Relationship between Financial Structure and Economic Growth in Contemporary African Economy: A Case Study of Nigeria from 1990-2018 (Published)

This study examined financial structure and economic growth of contemporary African economies; evidence from Nigeria. The specific objectives of this study are to investigate the effect of financial structure in bank credit to the private sector ratio (BC), market capitalization ratio (MC), liquid liability ratio (LLR), turnover ratio (TR) and value of traded share (VTS) on economic growth variable in Gross Domestic Product (GDP). The study was anchored on bank based and market-based theory. The study used secondary data obtained from World Bank Data Atlas and subjected them to Granger Causality technique to test the interaction between independent variables and the dependent variable at the 5% level of significance. The findings show that financial structure in BC, MC, LLR, TR and VTS had no significant effect on GDP in the contemporary African economies. The result further discovered that there was absence of long run relationship in the study. Thus, the study concludes that financial structure does not have significant effect on economic growth in the contemporary African economies. Hence, the study recommends that financial structure should strengthen and enhance availability of money supply to key sector of the economy thereby improving economic growth by ensuring financial deepening within the economies and providing viable economic environment for financial enhancement to boost investment activities within the Nigerian economy.

Keywords: Bank credit, GDP, Market Capitalization, economic growth, financial structure

An Empirical Evaluation of the Effect of Foreign Investment Inflows on Economic Growth in Nigeria (Published)

This study examined the effect of foreign investment inflows on economic growth of Nigeria, using secondary data for the period 2001 to 2018. The study adopted gross domestic product as the indicator of economic growth and the dependent variable, while foreign direct investment, foreign portfolio investment and exchange rate were used as explanatory variables. The data on the study variables covering the period 2001 to 2018 were collected from the CBN Statistical Bulletin. The study employed descriptive statistics and multiple regression analysis technique based on the E-view computer software for analyzing data. The results of analysis revealed that foreign direct investment, foreign portfolio investment and exchange rate had significant positive influence on gross domestic product. Based on the results of the empirical analysis, the study concluded that foreign investment inflows have made the desired positive impact on the growth of the Nigerian economy. However, a lot still need to be done to create conducive investment climate to attract sufficient amount of foreign investors into the productive sectors of the Nigerian economy. The study recommended that the regulatory authorities should formulate policies and create the enabling environment to attract foreign investments into Nigeria.

Keywords: Direct, Exchange Rate, Foreign, Investment, Portfolio, economic growth, inflows

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.

Keywords: Education, GDP, Regression, South Asia, economic growth

Tertiary School Enrolment in Nigeria: Implication for National Development (Published)

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

Keywords: Government Expenditure, National Development, capital expenditures, economic growth, recurrent expenditures, tertiary enrolment

Higher Institutions Funding and the Nigerian Economy (Published)

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.

Keywords: Budget, Education, Funding, Government Expenditure, Higher Institutions, economic growth

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

Keywords: Defence, Education, Health, Infrastructure, PVECM, economic growth

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.

Keywords: Education, GDP, Regression, South Asia, economic growth

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.

Keywords: ARDL Analysis, Government Expenditure, Poverty Reduction, economic growth

The Effect of Natural Capital on Economic Growth in Botswana (Published)

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.

Keywords: Autoregressive Distributive Lag model, Mineral Asset Value, Natural Capital, economic growth

The Role of Fiscal Policy in Achieving Economic Stability in Jordan (Published)

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.

Keywords: Economic Stability., Fiscal Policy, Gross Domestic Product, Jordanian economy., economic growth

Impact of Multinational Oil Companies (MNOC) On Economic Growth in Nigeria (1960-2010) (Published)

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.

Keywords: Companies, MNOC, Multinational, Nigeria, economic growth, oil

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.

Keywords: Ecowas, FDI, Heterogeneous panel cointegration, SUR Multiple Regression., economic growth

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.

Keywords: Engineering, Entrepreneurship, Mathematics Education, Science, Technology, economic growth

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.

Keywords: : Human Capital, Investigation, Investments, Nigeria, economic growth

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.

Keywords: Export, Export-led growth hypothesis, Toda-Yamamoto Granger Causality Framework, economic growth, import