Tag Archives: Per Capita GDP

Foreign Capital Mobility and Per Capita GDP Growth in Nigeria (Published)

The movement of capital across national boundaries has remained an interesting area in development narratives considering its role in the development process. This paper provides deeper insights into the empirical relationship between capital inflows and per capita GDP growth in Nigeria between 1980 and 2018. The heterogeneous nature of foreign capital was taken into consideration following its decomposition into its key components of debt, aid and migrants’ remittances. Time series for each of the variables were collected from secondary sources including NBS, World Bank World WDI, World Bank, International Debt Statistics and IMF International Financial Statistics. Combinations of ADF unit root and bounds cointegration tests in addition ARDL and Granger causality tests form basis for the analysis. It was found from the unit root test results that the variables are mixed integrated. Again, the bounds test show evidence of long run relationship amongst the variables. The ARDL estimates reveal that migrants’ remittances have the significant positive effect on per capita GDP in the long run. With 1 percent increase in remittances, per capita GDP will, on the average, increase by about 2.2595 percent. On the other hand, multilateral debt negatively affects per capita GDP in both short and long run. It was found from the results that bidirectional causality exists between migrants’ remittances and per capita GDP while unidirectional causality flows from technical cooperation grants to GDP per capita. Given the findings, it is recommended that policy makers should initiate policies and provide incentives helpful for mobilizing international resources and allow for a paradigm shift that will ensure the allocation of the resources to key sectors with high potentials for growth of per capita GDP.

Keywords: Aid, Debt, Foreign Capital, Per Capita GDP, Remittances, development narrative

Assessment of Agriculture to Business and Economic Growth in Ecowas Countries. (Published)

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.

Keywords: Agriculture, Business, Per Capita GDP, economic growth