Socio-Economic Effects of Coronavirus Disease 2019 (COVID-19) on Logistics Industry in a Developing Nation (Published)
Logistics plays a vital role in the growing global economy and increaseed competition. Investment in logistics business enhances the economic growth of a nation. Consequently, COVID-19 virus crippled the economy. Thus, leading to recession. The aim of this research examined the socio-economic effects of Covid-19 virus on the logistics sectors in Nigeria. Both primary and secondary data were used in which descriptive and inferential statistics were adopted. Survey design was used for the inferential statistics. Questionnaire was used as instrument to collect information from 120 respondents. The result showed that the Gross Domestic Product (GDP) decline because of the COVID-19 pandemic. Also, a relationship was established between COVID-19 and Logistic sector at r = 78.1%. It was concluded that COVID-19 pandemic has limited the logistics sector in terms of logistics service, revenue generation and employment opportunities. It was recommended that a less tax burden should be considered by the government to support the logistics sector.
Citation: Dosunmu Victor Ayodele (2022) Socio-Economic Effects of Coronavirus Disease 2019 (COVID-19) on Logistics Industry in a Developing Nation, European Journal of Logistics, Purchasing and Supply Chain Management, Vol.10 No.1, pp.24-30
The study investigates the nexus between financial development, trade performance and growth in Nigeria between the period 1985 to 2020. Financial development, government expenditure, inflation rate and trade openness were used as dimensions of independent variables while real gross domestic product was used as the dependent variable. Annual time series data on our targeted variables were obtained from secondary sources including the Central Bank of Nigeria annual statistical bulletin, World Bank development indicators. The Eview9 Statistical Software was employed to analyze the data empirically. The Unit root test shows that financial development, government expenditure, trade openness and real gross domestic product are all stationary after first difference I(1) while inflation rate was stationary at level I(0). The data were analyzed using the Autoregressive distributed lag (ARDL). The results of the ARDL estimates indicate that in the long run financial development and government expenditure coefficients have positive relationships with real gross domestic product and they are also statistically significant. The study recommends amongst others that Nigerian trade performance should be improved through economic diversification so as to reduce much emphasis on oil export and availability of funds from private sector at competitive interest rate in order to produce internationally competitive products should be encouraged. Also, there should be the implementation of monetary policies that would bring about stability in exchange rate, promote trade openness and ensure government purchases that enhances financial development.
Citation: Adeyemo, Oyindamola Olajumoke and Tamunowariye, Chinonso (2022) The Nexus between Financial Development, Trade Performance and Growth in Nigeria, Global Journal of Arts, Humanities and Social Sciences, Vol.10, No.3, pp.1-17
Citation: Joseph Eleojo Attah , Simeon G. Nenbee and Jamilu Aliyu Wamkko (2022) Tax Revenue and the Economy of Sub-Saharan Africa: A Systemic Analysis, International Journal of Small Business and Entrepreneurship Research, Vol.10, No.1, pp.1-14
This paper examines the role of tax revenue in engineering economic growth in the Sub-Saharan Africa (SSA) region, analyzing data for 12 regional countries obtained from secondary sources such as the OECD database and World Bank World Development Indicators (WDI), covering the period 2005-2020, and analyzed using the fixed effect method, which accounts for possible heterogeneity among the SSA countries. Economic growth was measured using real gross domestic product, and tax revenue by ratio of tax revenue to GDP. The study controlled for other economic growth drivers such as trade openness, foreign direct investment, exchange rate, domestic investment and money supply. The salient findings indicate that taxation hampers the economic growth of SSA countries, and that domestic investment and favorable exchange rates promote economic growth in the SSA region, but domestic investment has a greater stimulating impact. Based on these findings, we recommend that governments of the SSA countries should implement tax cuts or expand the tax base of the local economy in order to reduce the deadweight loss of increased taxation.
The purpose of the study was to investigate the effect of interest rate spread on economic growth using annual time series data from 1975 to 2018. The study used the Engel-granger two-step procedure which uses the OLS technique to establish both the long-run and short-run relationships between interest rate spread and economic growth. The study established that interest rate spread is a statistically important determinant of economic growth but it has a negative impact in the long-run. Also, the result shows that labour force, capital stock, and exports affect economic growth in Ghana positively both in the long-run and short-run. However, government expenditure appeared not to be a statistically significant factor in determining economic growth in Ghana. Policy actions that ensure macroeconomic stability should be embarked upon to achieve stability and sustainable growth of the economy. Export promotion, investment opportunities as well as producing active labour force should be given a priority.
This study examined the relationship between exchange rate and economic growth in Nigeria between 1981 and 2020. The specific objectives are to determine the effects of exchange rate, inflation and interest rate on gross domestic product (GDP). The data on the variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators, and analyzed using descriptive statistics, unit root as well as bounds cointegration tests and ARDL model. The unit root test results showed that the variables are mixed integrated. While inflation is stationary at levels, the other variables in the model were stationary at first difference. The bounds cointegration test showed that long run relationship exists between GDP growth and the underlying explanatory variables. The findings showed that exchange rate and inflation negatively impacted on economic growth. This finding indicates that increase in exchange rate and price level is detrimental to the growth of the Nigerian economy. There is evidence of a significant positive effect of interest rate on GDP growth. This finding explains the reality in Nigeria, where businesses and households tend to borrow even as interest rate increases, but tend to cut corners by reducing the quality of their products and services or pass-on the increased costs of borrowing to consumers by increasing prices. Given the findings, this study recommends amongst others that the federal government through the CBN should ensure that exchange rate policy should is consistent to provide opportunity for a realistic and stable exchange rate capable of driving economic growth in Nigeria.
Government Expenditure and Economic Growth in Nigeria: Aggregate Level Analysis using the Bound Test Approach (Published)
Economists have divergent views on the relationship between public expenditure and economic growth. The pro-market viewpoint argues that large government expenditure is a source of economic instability and has negative effect on economic growth. The anti-market view, on the other hand, stresses positive effect of government spending on economic growth. Stimulated by unresolved debates on the precise relationship between government spending and economic growth, and continuous growth in government spending, this study employed modified and extended aggregate production model to examine the effects of government expenditure at its’ aggregate level on economic growth in Nigeria for the period (1981-2018) using bound test (ARDL) approach. The co-integration result indicates the existence of long-run relationship between total government expenditure (LTGE) and economic growth in Nigeria. ARDL results show that total government expenditure (LTGE) impacted positively on economic growth in Nigeria in line with Keynesian theory. The granger causality test result indicates the existence of uni-directional causal relationship from LGDP to LTGE for the observed period, in line with Wagner’s theory. It is recommended that there should be proper utilization of public fund in the provision of security and critical infrastructure especially electricity supply and road infrastructure which are precursors to effective economic performance. Public fund should be properly managed to ensure accountability, transparency and fiscal responsibility in carrying out public assignment. It is believed that if corruption is tackled in the country, more public fund will be freed for development and public expenditure would impact more on the economic performance, hence, the fight against corruption in the country should be frontally confronted. Public institutions charged with the responsibility of handling corruption matters in the country should be overhauled and strengthen to ensure timely and proper handling of corruption matters.
Citation: Udo N. Ekpo , Ekere J. Daniel and Inibeghe M. Okon (2022) Government Expenditure and Economic Growth in Nigeria: Aggregate Level Analysis using the Bound Test Approach, International Journal of Developing and Emerging Economies, Vol.10, No.1, pp.1-20
Public Expenditure, Official Development Assistant and Economic Growth: A Time Series Analysis for Nigeria (1981 – 2018) (Published)
In addition to divergent views of economists on the effect of public expenditure on economic growth, results of existing empirical studies in developed and developing economies has remained inconclusive and tends to depend on the period of study, econometric method, nature of data and the composition of government expenditure. In this study, public expenditure in Nigeria is decomposed into domestic and the foreign receipts components. The domestic component comprises capital expenditure (GCE) and recurrent expenditure (GRE) while the foreign receipts component captures foreign inflow of official development assistance (ODA). Employing extended aggregate production function framework and bound test approach (ARDL model), this study examined the impact of each of these three components of public expenditure (GCE, GRE and ODA) on economic growth in Nigeria for the period (1981- 2018). The findings of this study indicate the existence of a long run relationship between the macroeconomic variables estimated in the model. The recurrent expenditure (GRE) has positive impact on economic growth both in the short-run and in the long-run, countering the widely held view that government consumption spending is growth-reducing. The capital expenditure (GCE) and official development assistance (ODA) have negative impact on economic growth in Nigeria both in the short-run and long-run. The granger causality test result shows no causal relationship between GDP and GCE and between GDP and ODA, but a bi-directional causal relationship exists between GDP and GRE. It is recommended that greater percentage of public fund should be expended as capital expenditure and such fund should be properly utilized on acquisition of physical capital and social overhead capital like transportation, electricity, communication, irrigation, flood control, research and human capital development, capital formation in agricultural and industrial sectors to enhance the productive capacity of the economy. ODA in recent times has been unreliable source of finance in Less Developed countries, hence Nigeria should not heavily depend on it. However, whatever ODA is received should be properly utilized and channel into productive projects which have significant positive impact on economic activities and wellbeing of the populace. The fight against corruption in the country should be frontally confronted to free more public fund for collective development purposes in the country.
The study examined the impact of trade openness and human capital investment on economic growth in Nigeria from 1981 to 2020 and employed error correction mechanism for the analysis. Economic growth was proxied by nominal gross domestic product. Human capital investment was decomposed into government capital expenditure on education, government recurrent expenditure on education, government capital expenditure on health and government recurrent expenditure on health while trade openness was measured by trade openness index. Exchange rate was used as check variable. The study carried out descriptive statistics test, Augmented Dickey-Fuller unit root test, Johansen co-integration test and Error Correction Mechanism (ECM) technique for the analysis. The result revealed that capital component of government expenditure on health and education were negatively related to national output during the period of investigation. However, the recurrent component of government on both health and education as well as trade openness were positively related to economic growth for the period. The study recommended among others that Government should increase funding in education and health sectors to meet the 20% to 15% benchmark recommended by UNESCO and WHO respectively and adopt the private sector model of payment that is based on milestone achieved in capital projects in both sectors.
Citation: Timothy Kabari Kerebana and Itode James Krama (2021) Trade Openness, Human Capital Investment and Economic Growth in Nigeria, International Journal of Development and Economic Sustainability, Vol.9, No.3, pp.57-71
This study seeks to ascertain the impact of fiscal deficit on external debt in Nigeria with a focus on determining the long run relationship between fiscal deficit and external debt, as well as to ascertain the direction of causality between fiscal deficit and external debt. The model employed in this study is the Error Correction Mechanism; Granger causality test was used to ascertain the direction of causality. The time frame for this study spanned between the years 1981-2019. This study found that fiscal deficit is not a significant determinant of external debt in Nigeria. Also, the variables of gross domestic product, degree of openness, exchange rate was found to be insignificant factors determining external debt except inflation which was significant in determining external debt in Nigeria. Furthermore, there was neither a uni-directional nor bi-directional causality between external debt and fiscal deficit. Although, there is causality flowing from budget deficit and degree of openness as well as budget deficit and gross domestic product. However, it was suggested that policies be implemented that will enhance the channeling of funds from the external sector to productive sectors of the economy in order to ensure diversification and revenue generation thereby ultimately lessening the external debt burden that Nigeria is faced with. Finally, there is need for fiscal discipline and fiscal prudence if fiscal deficits would be a true determinant of the size of external debt accumulated in the country.
Citation: Shofade Oladapo Daniel and Kazeem Adebola Ibrahim (2021) Fiscal Deficit and External Debt: The Nigerian Experience, International Journal of Development and Economic Sustainability, Vol.9, No.3, pp.1-18
Effect of Vegetable Exports on Nigeria’s Economy (Published)
Nigeria’s heavy dependence on crude oil has rendered its economy vulnerable to fluctuations in world crude prices hence the intense prospect for exportation of cultivable vegetables to the global market in pursuant to the compelling need for Nigeria to diversify its economy. This study investigates the effect of vegetable exports on Nigeria’s economy from 1988 to 2018 with the new growth theory as its theoretical framework. Time series data were sourced from World Integrated Trade Solution (WITS), World Development Indication (WDI) and Central Bank of Nigeria (CBN) Statistical bulletin. The autoregressive distributive lag (ARDL) bounds testing technique and the error correction model were adopted for the study. Our results show that although the coefficient for vegetable exports was negative, it significantly impacted on Nigeria’s economic growth. More so, total agricultural exports had positive impact on economic growth. On this basis, we recommend that Nigeria should revisit its exports composition and pattern regarding all vegetable products and provide quality inputs so as to improve the quality and consistency in supply of vegetable exportables to the world market.
Citation: Ebele S. Nwokoye, Ekwutosi V. Ojukwu, Christopher U. Kalu, Amaka G. Metu (2021) Effect of Vegetable Exports on Nigeria’s Economy, International Journal of Development and Economic Sustainability, Vol.9, No.2, pp.23-38,
Comparative Analysis of Fiscal Decentralization and Economic Performance of Akwa Ibom and Cross River State in Nigeria (Published)
This paper analysed the impact of fiscal decentralization on economic growth of Cross river state and Akwa Ibom state in Nigeria using secondary data from joint task board, Revenue Allocation board and national bureau of statistics (NBS) from 2005-2020. The Study adopts SURE model method of Estimation to analyse the results. Finding from the study revealed that Federal Allocation, Internally generated Revenue, Fiscal Autonomy and Population decentralization in Nigeria influences economic growth in Cross river state and Akwa Ibom state. The theoretical expectation that decentralization would improve the economic performance of the selected states in south-south through proximity and regional competition seem not to be found in the study. The flow of fiscal decentralization in Cross river state and Akwa Ibom state in Nigeria seem to follow inefficient application of resources by the political class with increased cost of governance rather than ensuring cost effectiveness in the provision of public services. Therefore, findings from the study revealed that population growth and internally generated revenue are the major determinants of Economic growth in Cross river state while Fiscal Autonomy and Federal allocation contributes infinitesimal to economic growth but not the major determinants of Economic growth in Cross river state. Also findings from the study revealed that Internally generated revenue and Federal allocation are the major determinants of Economic growth in Akwa ibom state while Fiscal Autonomy and population growth contributes infinitesimal but not the major determinant of Economic growth in Akwa ibom state. Therefore the study suggests key Economic reforms to improve transparency and accountability in all sectors of the economic as well as good governance in order to make fiscal decentralization a catalyst for economic growth in Cross river state and Akwa Ibom state of Nigeria. The study also recommends that Policy measures must be put in place to grow the economy using monetary and fiscal policy mix reaction to ensure macroeconomic stability and realisation of macroeconomic goals of economic growth, price stability, low unemployment and balance of payment of states in Nigeria.
Over the years, the Nigerian financial sector has been characterized by relative fragility and instability with intermittent incidences of liquidity challenges, bank distress, bail out, declining all share index and eroding investors’ confidence. Although several efforts have been made by policy makers and financial sector regulators towards stabilizing and strengthening the financial sector, available evidence suggest that the real sector is yet to reflect the gains of financial sector development. Consequently, researchers have made substantial effort to understand the implication of financial sector development for economic growth and economic welfare. It is against this backdrop that this study investigated the impact of financial sector development on economic and economic welfare. The study used time series data spanning between 1970 and 2015. Four major variables were used to proxy financial sector development namely; bank private sector credit, number of banks branch network, liquidity ratio and lending-deposits ratio. Economic growth was measured by growth of real GDP; discomfort index which measures macroeconomic welfare of citizenry as defined by Okun (1962) was computed by summation of inflation and unemployment rate. Vector autoregressive (VAR) model was used for estimations. The findings indicate that not all the financial sector development indicators under study have significant effect on macroeconomic performance in Nigeria. The results show that financial sector development indicators have positive impact on real GDP growth in Nigeria. However, contrary to expectations, private sector credit and lending – deposit spread had negative effects on economic growth. Similarly, apart from access to financial service, all other financial sector development indicators under study exerted negative effects on discomfort index, which implied that financial sector development was capable of improving economic welfare. The study therefore concluded that financial sector development that guarantees increased liquidity and stability of the financial sector is crucial for sustainable economic growth and increased welfare. The study also recommends that the Central Bank of Nigeria and other financial sector regulators should strive to strengthen the financial sector and ensure increased private sector access to financial services such as bank credit through policy formulation and implementation as a means of improving macroeconomic performance of the nation.
The paper aims to establish a long-run and causal relationship between economic growth, CO2 emissions, international trade, energy consumption, and population density in Malaysia. The study will use annual data from 1970 to 2014. A unique cointegrating relationship between our variables was identified, and the Environmental Kuznets Curve (EKC) hypothesis was analyzed using the Auto Regressive Distributed Lag (ARDL) methodology. Our empirical results suggest the existence of a long-run relationship between per capita CO2 emissions and our explanatory variables. The Vector Error Correction Model (VECM) methodology was used to analyze the Granger Causality, and the results show the absence of causality between CO2 emissions and economic growth in the short-run while demonstrating uni-directional causality from economic growth to CO2 emissions in the long-run.
This research focuses on the impact of Foreign Direct Investment and Portfolio Flows on Economic growth in Nigeria. The research covers the period between 1980 and 2018. Secondary data were collected from the Central Bank of Nigeria statistical bulletin and various issues of World Bank Publications as well as Nigerian Bureau of Statistics (NBS) The period being understudied encompasses the period of massive government efforts to attract foreign investors into the country as well as period of turbulent macroeconomic indicators such as high unemployment and low level of per capita income in Nigeria. The parsimonious Error Correction Modelling (ECM) result shows that Foreign Direct Investment, Foreign Portfolio Investment, Labour force and Gross Fixed Capital Formation have a positive and significant impact on the level of Economic Growth in Nigeria. The Johanson cointegration test result shows a long-run relationship among Foreign Direct Investment, Foreign Portfolio Investment, Labour Force, Gross Fixed Capital Formation in Nigeria. The result from the variance decomposition reveals that shocks to Foreign Direct Investment, Foreign Portfolio Investment, and Labour Force and Gross Fixed Capital formation did not explain a significant proportion of the changes in economic growth in Nigeria within the period of the study. It was recommended that government should put in place policies to encourage foreign investors to go into the agricultural and manufacturing sectors which are key to job creation and for sustainable economic growth.
An Evaluation of the Impact of Small and Medium Enterprises (SMES) Development on Economic Growth in Nigeria (Published)
This study evaluated the impact of small and medium enterprises development on economic growth in Nigeria. The study used aggregate asset base and aggregate capitalization of SMEs as the independent variables, while gross domestic product (proxy for economic growth) was adopted as the dependent variable. Secondary time series data were collected from the Central Bank of Nigeria Statistical Bulletin 2018, National Bureau of Statistics 2018, and National Survey of Micro Small and Medium Enterprises (MSMEs) 2013 & 2017 conducted by the Small & Medium Enterprise Development Agency of Nigeria (SMEDAN) for the period 2000 to 2018. Descriptive statistics and multiple regression analysis based on the OLS technique (with the aid of SPSS version 19) were employed as methods for data analysis. The findings show that the aggregate asset base and aggregate capitalization of SMEs have little or no significant effect on the GDP. It was also discovered that there exists a long-run relationship among the variables even though the overall regression model was not statistically significant at 5%. It was recommended amongst others that more efforts should be put in place by Government to gather enough information on SMEs through the responsible. The Federal and /State Ministries of Industry in collaboration with SMEDAN should work out strategies for reporting the operations of SMEs in Nigeria, highlighting the asset base and aggregate capitalization of the sector and put in places policies to resuscitate the sector.
Foreign Direct Investment, Remittances and Economic Growth in Nigeria. Do these inflows stimulate Growth? (Published)
The effect of international inflow of capital on economic growth has generated a lot of argument and debate over time. Some concluded that capital inflow does not matter and in effect cannot stimulate the desired growth while others believed it does matter in promoting the key macro-economic variables such as the reduction in unemployment and poverty, price stability, industrialization just to mention a few. Hence, this study was set out to investigate the effect of Foreign Direct Investment and Remittances on economic growth in Nigeria. The study adopted other explanatory variables and data were sourced from the World Development Indicator and Central Bank of Nigeria spanning from 1980 to 2019 and Ordinary Least Square was used to analyze the data after it has been subjected to unit root stationary test. The study found that Foreign Direct Investment has a negative relationship with economic growth and Remittances seem to have a positive effect on economic growth. The study, therefore, concluded that FDI does not stimulate desired growth while remittances promote growth in Nigeria. In the light of these findings, the study, therefore, recommended that government should remove impediments discouraging investment policies that will stimulate the use of FDI in the country. The Nigeria government should also encourage inflow and monitoring of remittances through financial institutions to enable them to have adequate data on this inflow to gear it into the growth process.
The study set out to investigate the effect of external debt on Nigerian economy. Time series data for twenty-two years that span from 1994 to 2015 were obtained and subjected to test using Ordinary least square regression (OLS) for the hypotheses formulated for the study. The study revealed some forms of long run relationship between Gross domestic product, on the one part and external debt, external debt service and export, on the other part but of particular importance is the long run marginal negative relationship between external debt and Gross domestic product. The study further confirmed causality, from predictors to dependent variable and recommended that there should be a ban on external debt in Nigeria, for some time. However, where external debt is unavoidably necessary for productive venture/investment that can boost export, it should be for such specific venture/investment and should be well managed to pay back the external debt and its associated service cost, thereby justifying the decision for such external debt without further stress on the economy.
This study investigates the effect of bank lending management on economic growth in Nigeria for the period 1985-2018. The data for the study were obtained from the Central Bank of Nigeria Bulletins, World Development Indicator and National Bureau of Statistics. The variables for the study include Gross Domestic Product, Deposit Interest Rate, Lending Interest Rate, Bank Asset Quality and Deposit Multiplier. Data for the study was analyzed using Descriptive Statistics, Ordinary Least Square method (OLS) and Multiple Regression Analysis. The result of short and long run regression revealed a negative impact of bank lending management on economic growth. The F-statistic (6.67) was also used to test explanatory power of the model with the corresponding probability value of (0.0007) which is statistically significant at 5%, suggesting that the explanatory variables have joint and significant effect on the economic growth of Nigeria. It is recommended that the regulatory authority set up a regulatory framework that will enhance the capacity of deposit money banks in Nigeria to lend to real sector of the economy at a very low interest rate and attract massive deposit by investors through robust deposit interest rate.
As society grows, its increasing social demand is also when large resources are being lost, as well as the price for growing. The balance between the two economic and environmental benefits recently has been constantly mentioned as a difficult problem for any country. This research points to the growing conflict between economic development and environmental protection, how to balance economic benefits with environmental protection, and propose solutions to both economic development and environmental protection.
The main objective of the study is to ascertain the influence of tax revenue on economic development of Nigeria. The specific objectives are; to determine the influence of petroleum profit tax, company income tax and value added tax on economic development proxy by human development index (HDI). Annual time series data, from CBN and FIRS from 1997 to 2018 was used. The study used regression analysis. The result showed that petroleum profit tax and company income tax have significant effect on economic development while value added tax does not significantly influence economic development. The implication of the finding is that the higher the amount of tax revenue generated, the higher the level of economic development experienced by the economy. This implies that taxes that have positive effect on economic development are direct taxes, thus direct taxes exert more significant influence on economic development of Nigeria than indirect taxes. This anomaly was attributed to dysfunctional ties in tax system, loopholes in tax law and inefficient tax administration. The lower the amount of revenue generated from tax the lower the quality of development to be witnessed. Government will generate higher revenue if they strengthen the legal and regulatory framework in order to control tax evasion and tax avoidance by taxpayers, improve on the system of tax administration, .The paper therefore recommended that tax policy makers such as federal inland revenue services and other tax regulatory bodies should strengthen their regulation on tax compliance mostly on tax that are direct based to curb tax evasion and tax avoidance by tax payers, adopt strategies to improve system of tax administration, by training and re- training of tax administrators through seminars and conferences to be abreast of modern trend in tax administration in order to generate more income for development.