nkechinyere uwajumogu | Renaissance University Ugbawka (original) (raw)
Papers by nkechinyere uwajumogu
Journal of economics and sustainable development, 2012
Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to ... more Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to attract foreign direct investment (FDI) because of its acknowledged potentials as a tool of economic development. This study investigated the empirical relationship between FDI and economic growth in Nigeria. Secondary data sourced mainly from CBN publications were used in the OLS and granger causality regression equations conducted for the period 1986 to 2010. Although FDI coefficient in the regression result showed that about 13% of variations in GDP are accounted for by a percent increase in FDI, their relationship is statistically insignificant. The regression result also showed that other variables in the modelgross fixed capital formation (GFCF), net exports (NXP), consumer price index (CPI), and exchange rate (EXR)impacted on the GDP. The result of the granger causality test showed a bi-directional causality between FDI and GDP, that is, each granger cause the other. On the basis of these, it was recommended that more sectors of the economy be deregulated so as to encourage more investor participation in the productive sector of the economy.
Business, management and economics research, 2015
The small and medium scale enterprises (SMEs) sector has been identified as a critical sector for... more The small and medium scale enterprises (SMEs) sector has been identified as a critical sector for the various roles it plays in the socio-economic development of an economy. Such roles include employment generation, bedrock of entrepreneurial development, avenue for investment and innovation, poverty reduction and economic growth. It is also a source of forward and backward linkages to multinational corporations (MNCs) which will engender foreign direct investment and local technological development. In Nigeria, the SMEs are faced with many challenges which include limited access to fund; lack of capacity of managers etc. These have undermined the growth, development and sustainability of the sector. It is in order to ameliorate these numerous challenges that government over the years have formulated and implemented several policies to develop, encourage and sustain SME success in Nigeria. The study is aimed at drawing important lessons from the success stories of German Mittlestand by importing, adopting or adapting their characteristics. The Mittlestand was chosen as a benchmark because the sector is resilient and was able to weather economic storms during the economic meltdown than many of their competitors. Important lessons that could be learnt by Nigeria’s SMEs include amongst others, the importance of investing in human resources through the adoption of Germany’s dual vocational system; production of high quality goods and services; investing in research and development; provision of after sales services; having a sound business plan that consents to business inheritance, etc. On the part of government, the lessons that could be learnt include: provision of critical infrastructure; creating enabling environment for small businesses; passing and enforcing the local content bill etc. Keywords: German mittlestand; SME development; SME success; SME sustainability.
IOSR Journal Of Humanities And Social Science, 2013
The capital market performs many roles that are critical for the growth and development of an eco... more The capital market performs many roles that are critical for the growth and development of an economy. Such roles include liquefying the economy, efficient allocation of resources, pooling of savings and reducing risk etc. There is paucity of capital in developing countries like Nigeria, thus the need to enhance the capital market. Despite the increased activities in the capital market, the real sectors of the economy are not feeling the impacts of these activities. The study was aimed at finding out whether the capital market has growth-inducing impact on the agriculture sector. The study employed co-integration techniques to achieve this purpose using time series data sourced from CBN bulletin from 1980-2012. The study found that capital market measures had statistically insignificant impact on agricultural output long run. This implies that despite the expanded activities in the Nigerian capital market over the years, there has not been any remarkable impact on the real sectors of the economy. On the basis of these findings some of these recommendations were proffered: removal of the impediments to the growth of agricultural sector; reduce the cost of doing business in Nigeria; there should be transparency in policy formulation and implementation etc.
African J. of Economic and Sustainable Development
Studies in Agricultural Economics
This study examines the impact of access to bank and non-bank credit on rice productivity and out... more This study examines the impact of access to bank and non-bank credit on rice productivity and output. It employed the coarsened exact matching (CEM) model and qualitative methods for primary data on a purposive sample of 450 rice farmers across three Local Government Areas of Ebonyi State, Nigeria. Pre-matching results suggest that access to non-bank credit and access to total credit significantly affected labour productivity and output, while access to bank credit significantly affected output. However, the post-matching results show that access to all three categories of credit has no significant effect on either output or capital, labour, and total factor productivity. This study therefore recommends that for an improved production and productivity yield among rice farmers in the state, policies should focus on the issues of improved quality of education and constraints in accessing loans/credits.
African Development Review
COVID-19 in the African Continent
Journal of Human Capital Development, 2018
Finance is a very important and critical ingredient in the growth and developmental process. This... more Finance is a very important and critical ingredient in the growth and developmental process. This has led experts to propose that the financial sector should be closely monitored and organized. The objective of the study was to find out the relationship between financial liberalization and human capital development in Nigeria using quarterly data from 1993 to 2013. The study employed the ARDL method and found that financial liberalization has long run relationship with human capital development; though different measures of financial liberalization gave varying signs of the relationship between them and human capital development. On the basis of these findings, many recommendations were proffered which include economic stability (internal equilibrium) before financial liberalization; sustainable regulatory and supervisory framework; direction of credit to productive sectors etc. Keywords: financial liberalisation, human capital development, per capita income
Human life has no duplicate; all living things need nutrition in order to get on with life. Flood... more Human life has no duplicate; all living things need nutrition in order to get on with life. Flooding, just like any other unexpected natural disasters, rid us of both lives and nutrition; it rids us of our purchasing power, our heritage and our future. This paper takes a look at the effects of the 2012 flood disaster in Nigeria and pays particular attention to the implications for the agricultural sector. Findings herein show that this disaster swept away so many sources of livelihood and destroyed both social and farming infrastructures. The study therefore recommends that policy makers and people residing in flood prone areas must make sustainable efforts geared towards prevent future occurrences and cushioning the effects of flood disasters in Nigeria. Key Words: agriculture, disaster, flooding, human lives, Nigeria
International Journal of Economics and Financial Issues, 2018
Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financ... more Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financial requirement gap and many policies and programmes are mapped out to attract FDI in Nigeria. The study was aimed at examining whether source of FDI matter for growth in Nigeria. Using Autoregressive Distributed Lag (ARDL) bound test model, we disaggregated FDI sources to determine individual impact, and then add interest rate and exchange rate to capture macroeconomic conditions of the economy. The results show while inflow from Asian and African countries had significant and positive impact on GDP growth rate, FDI from USA and EU countries had the opposite effect. Therefore, the impacts of FDI indeed differs depending on the country of origin and this is caused by differences in market structures of host country and country of origin, business system, institutions, policy formulation process, organizational features, level of development etc.
Human life has no duplicate; all living things need nutrition in order to get on with life. Flood... more Human life has no duplicate; all living things need nutrition in order to get on with life. Flooding, just like any other unexpected natural disasters, rid us of both lives and nutrition; it rids us of our purchasing power, our heritage and our future. This paper takes a look at the effects of the 2012 flood disaster in Nigeria and pays particular attention to the implications for the agricultural sector. Findings herein show that this disaster swept away so many sources of livelihood and destroyed both social and farming infrastructures. The study therefore recommends that policy makers and people residing in flood prone areas must make sustainable efforts geared towards prevent future occurrences and cushioning the effects of flood disasters in Nigeria.
Sustainability
Empirical evidence is lacking on the nexus between coffee commodity output, climate change, and c... more Empirical evidence is lacking on the nexus between coffee commodity output, climate change, and commodity price volatility of Africa’s most populous country, Nigeria, and other developing countries. To fill this gap, this study analyzed the reaction of coffee output to climate change and commodity price volatility. We used secondary data from 1961 to 2015 from reliable sources for Nigeria. The study adopted generalized autoregressive conditional heteroscedasticity (GARCH), autoregressive conditional heteroscedasticity (ARCH), and fully modified ordinary least square (FMOLS) in analysis of coffee output reaction to climate change and commodity price volatility. The findings show that coffee output in Nigeria is influenced by climate change and the international commodity price of coffee. The study demonstrates the potential benefits of improving coffee output and export through climate mitigation and adaptation measures and revival of agricultural commodity marketing in Nigeria and o...
Journal of Developing Countries Studies, 2013
Although there is a fairly extensive literature on the theory of foreign direct investment, not m... more Although there is a fairly extensive literature on the theory of foreign direct investment, not much of it is useful in providing insights into its effect on domestic entrepreneurship in Nigeria. This paper looks at the theoretical basis for business mentoring, examines the influence of foreign direct investment (FDI) inflow on domestic entrepreneurship in Nigeria’s manufacturing sub-sector from 1973 to 2010 while employing OLS technique. Results identified a positive and highly significant effects of each of human capital and infrastructural development on activities on Nigeria’s manufacturing sub-sector while each of manufacturing FDI, market size and anti-FDI policies has a negative and highly significant effect on activities in Nigeria’s manufacturing subsector. This paper therefore recommends that policies on investment should be geared towards wooing foreign investors into the manufacturing sub-sector while giving the diversification of the country’s productive base a top prio...
IOSR Journal of Economics and Finance, 2013
The paper reexamines the nexus between financial sector development and economic growth in Nigeri... more The paper reexamines the nexus between financial sector development and economic growth in Nigeria over the period 1970-2011. Prior to the study, most of the earlier works use financial deepening to proxy financial development and conclude that financial development do not cause growth. The paper seeks to investigate the hypothesis that financial development is positively related to growth. Using four measuresratios of broad money (MSY), bank deposit liabilities (BDY), domestic credit (DCY), private sector credit (PSY)-to proxy financial development, and adopting Granger causality tests in a VAR framework, the empirical result suggests that financial sector development is positively related to and therefore causes economic growth just as finance is growth dependent-a case of bi-directional causality. The variance decomposition shows that the variations in DCY and PSY are significantly and dominantly affected by MSY. This suggests, among others, that expansion of savings by DMBs through saver-oriented real deposit rate (RDR) translate to domestic credit with higher proportion utilized by the private sector. Among other measures, the establishment of a functional Asset Management Corporation should be hastened to free DMBs from non-performing loans and enhance their ability to expand private sector credits. Equally, to sustain the influence of finance on growth and vice versa, the current reforms in the financial sector should be sustained while focusing on complementary and coordinated institutional and structural reforms in the real sector to ensure simultaneity in the development of the financial and real sectors of the economy.
International Journal of Economics and Financial Issues, 2018
Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financ... more Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financial requirement gap and many policies and programmes are mapped out to attract FDI in Nigeria. The study was aimed at examining whether source of FDI matter for growth in Nigeria. Using Autoregressive Distributed Lag (ARDL) bound test model, we disaggregated FDI sources to determine individual impact, and then add interest rate and exchange rate to capture macroeconomic conditions of the economy. The results show while inflow from Asian and African countries had significant and positive impact on GDP growth rate, FDI from USA and EU countries had the opposite effect. Therefore, the impacts of FDI indeed differs depending on the country of origin and this is caused by differences in market structures of host country and country of origin, business system, institutions, policy formulation process, organizational features, level of development etc.
ERN: Other Development Economics: Macroeconomic Issues in Developing Economies (Topic), 2019
Incidences of rising income inequality in Nigeria have raised questions on its link with globaliz... more Incidences of rising income inequality in Nigeria have raised questions on its link with globalization. Using quarterly time-series data on an empirical model which is hinged on Stolper-Samuelson theorem, the Johnson cointegration test and error correction model showed that globalization, technology and foreign direct investment significantly heightened income inequality while that of productivity significantly diminished income inequality in Nigeria in the long run. This study recommends support for domestic entrepreneurship through import substitution and export promotion strategies so that Nigeria to enjoy gains from globalization. Furthermore, increased access to public service such as health care and high quality education among the poor and vulnerable is desirable for sustained increase in labour productivity.
PSN: Economic Growth (Topic), 2012
Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to ... more Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to attract foreign direct investment (FDI) because of its acknowledged potentials as a tool of economic development. This study investigated the empirical relationship between FDI and economic growth in Nigeria. Secondary data sourced mainly from CBN publications were used in the OLS and granger causality regression equations conducted for the period 1986 to 2010. Although FDI coefficient in the regression result showed that about 13% of variations in GDP are accounted for by a percent increase in FDI, their relationship is statistically insignificant. The regression result also showed that other variables in the model – gross fixed capital formation (GFCF), net exports (NXP), consumer price index (CPI), and exchange rate (EXR) – impacted on the GDP. The result of the granger causality test showed a bi-directional causality between FDI and GDP, that is, each granger cause the other. On t...
Evidences in the literature show that Nigeria’s consumptionist nature as well as its heavy depend... more Evidences in the literature show that Nigeria’s consumptionist nature as well as its heavy dependence on crude oil income streams, have created room for growing unemployment, inflation and poverty rates as well as the recent shrink in its GDP growth rate. More so, the unpredictable movements in global oil price demonstrate the need for Nigeria to diversify its revenue streams in order to remain relevant and ranked amongst the vigorous economies of Africa. Based on the United Nations Industrial Organization (UNIDO)/World Bank success yardsticks and with its theoretical framework rooted in the endogenous growth model, this paper interrogated the domestic macroeconomic drivers of economic diversification in Nigeria. Employing time series for the period 1981 to 2016 data from the World Development Indicators, the study found that the drivers of economic diversification were improved infrastructure, increased credit from financial sector, reduction in lending rate and increased domestic ...
Journal of economics and sustainable development, 2012
Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to ... more Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to attract foreign direct investment (FDI) because of its acknowledged potentials as a tool of economic development. This study investigated the empirical relationship between FDI and economic growth in Nigeria. Secondary data sourced mainly from CBN publications were used in the OLS and granger causality regression equations conducted for the period 1986 to 2010. Although FDI coefficient in the regression result showed that about 13% of variations in GDP are accounted for by a percent increase in FDI, their relationship is statistically insignificant. The regression result also showed that other variables in the modelgross fixed capital formation (GFCF), net exports (NXP), consumer price index (CPI), and exchange rate (EXR)impacted on the GDP. The result of the granger causality test showed a bi-directional causality between FDI and GDP, that is, each granger cause the other. On the basis of these, it was recommended that more sectors of the economy be deregulated so as to encourage more investor participation in the productive sector of the economy.
Business, management and economics research, 2015
The small and medium scale enterprises (SMEs) sector has been identified as a critical sector for... more The small and medium scale enterprises (SMEs) sector has been identified as a critical sector for the various roles it plays in the socio-economic development of an economy. Such roles include employment generation, bedrock of entrepreneurial development, avenue for investment and innovation, poverty reduction and economic growth. It is also a source of forward and backward linkages to multinational corporations (MNCs) which will engender foreign direct investment and local technological development. In Nigeria, the SMEs are faced with many challenges which include limited access to fund; lack of capacity of managers etc. These have undermined the growth, development and sustainability of the sector. It is in order to ameliorate these numerous challenges that government over the years have formulated and implemented several policies to develop, encourage and sustain SME success in Nigeria. The study is aimed at drawing important lessons from the success stories of German Mittlestand by importing, adopting or adapting their characteristics. The Mittlestand was chosen as a benchmark because the sector is resilient and was able to weather economic storms during the economic meltdown than many of their competitors. Important lessons that could be learnt by Nigeria’s SMEs include amongst others, the importance of investing in human resources through the adoption of Germany’s dual vocational system; production of high quality goods and services; investing in research and development; provision of after sales services; having a sound business plan that consents to business inheritance, etc. On the part of government, the lessons that could be learnt include: provision of critical infrastructure; creating enabling environment for small businesses; passing and enforcing the local content bill etc. Keywords: German mittlestand; SME development; SME success; SME sustainability.
IOSR Journal Of Humanities And Social Science, 2013
The capital market performs many roles that are critical for the growth and development of an eco... more The capital market performs many roles that are critical for the growth and development of an economy. Such roles include liquefying the economy, efficient allocation of resources, pooling of savings and reducing risk etc. There is paucity of capital in developing countries like Nigeria, thus the need to enhance the capital market. Despite the increased activities in the capital market, the real sectors of the economy are not feeling the impacts of these activities. The study was aimed at finding out whether the capital market has growth-inducing impact on the agriculture sector. The study employed co-integration techniques to achieve this purpose using time series data sourced from CBN bulletin from 1980-2012. The study found that capital market measures had statistically insignificant impact on agricultural output long run. This implies that despite the expanded activities in the Nigerian capital market over the years, there has not been any remarkable impact on the real sectors of the economy. On the basis of these findings some of these recommendations were proffered: removal of the impediments to the growth of agricultural sector; reduce the cost of doing business in Nigeria; there should be transparency in policy formulation and implementation etc.
African J. of Economic and Sustainable Development
Studies in Agricultural Economics
This study examines the impact of access to bank and non-bank credit on rice productivity and out... more This study examines the impact of access to bank and non-bank credit on rice productivity and output. It employed the coarsened exact matching (CEM) model and qualitative methods for primary data on a purposive sample of 450 rice farmers across three Local Government Areas of Ebonyi State, Nigeria. Pre-matching results suggest that access to non-bank credit and access to total credit significantly affected labour productivity and output, while access to bank credit significantly affected output. However, the post-matching results show that access to all three categories of credit has no significant effect on either output or capital, labour, and total factor productivity. This study therefore recommends that for an improved production and productivity yield among rice farmers in the state, policies should focus on the issues of improved quality of education and constraints in accessing loans/credits.
African Development Review
COVID-19 in the African Continent
Journal of Human Capital Development, 2018
Finance is a very important and critical ingredient in the growth and developmental process. This... more Finance is a very important and critical ingredient in the growth and developmental process. This has led experts to propose that the financial sector should be closely monitored and organized. The objective of the study was to find out the relationship between financial liberalization and human capital development in Nigeria using quarterly data from 1993 to 2013. The study employed the ARDL method and found that financial liberalization has long run relationship with human capital development; though different measures of financial liberalization gave varying signs of the relationship between them and human capital development. On the basis of these findings, many recommendations were proffered which include economic stability (internal equilibrium) before financial liberalization; sustainable regulatory and supervisory framework; direction of credit to productive sectors etc. Keywords: financial liberalisation, human capital development, per capita income
Human life has no duplicate; all living things need nutrition in order to get on with life. Flood... more Human life has no duplicate; all living things need nutrition in order to get on with life. Flooding, just like any other unexpected natural disasters, rid us of both lives and nutrition; it rids us of our purchasing power, our heritage and our future. This paper takes a look at the effects of the 2012 flood disaster in Nigeria and pays particular attention to the implications for the agricultural sector. Findings herein show that this disaster swept away so many sources of livelihood and destroyed both social and farming infrastructures. The study therefore recommends that policy makers and people residing in flood prone areas must make sustainable efforts geared towards prevent future occurrences and cushioning the effects of flood disasters in Nigeria. Key Words: agriculture, disaster, flooding, human lives, Nigeria
International Journal of Economics and Financial Issues, 2018
Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financ... more Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financial requirement gap and many policies and programmes are mapped out to attract FDI in Nigeria. The study was aimed at examining whether source of FDI matter for growth in Nigeria. Using Autoregressive Distributed Lag (ARDL) bound test model, we disaggregated FDI sources to determine individual impact, and then add interest rate and exchange rate to capture macroeconomic conditions of the economy. The results show while inflow from Asian and African countries had significant and positive impact on GDP growth rate, FDI from USA and EU countries had the opposite effect. Therefore, the impacts of FDI indeed differs depending on the country of origin and this is caused by differences in market structures of host country and country of origin, business system, institutions, policy formulation process, organizational features, level of development etc.
Human life has no duplicate; all living things need nutrition in order to get on with life. Flood... more Human life has no duplicate; all living things need nutrition in order to get on with life. Flooding, just like any other unexpected natural disasters, rid us of both lives and nutrition; it rids us of our purchasing power, our heritage and our future. This paper takes a look at the effects of the 2012 flood disaster in Nigeria and pays particular attention to the implications for the agricultural sector. Findings herein show that this disaster swept away so many sources of livelihood and destroyed both social and farming infrastructures. The study therefore recommends that policy makers and people residing in flood prone areas must make sustainable efforts geared towards prevent future occurrences and cushioning the effects of flood disasters in Nigeria.
Sustainability
Empirical evidence is lacking on the nexus between coffee commodity output, climate change, and c... more Empirical evidence is lacking on the nexus between coffee commodity output, climate change, and commodity price volatility of Africa’s most populous country, Nigeria, and other developing countries. To fill this gap, this study analyzed the reaction of coffee output to climate change and commodity price volatility. We used secondary data from 1961 to 2015 from reliable sources for Nigeria. The study adopted generalized autoregressive conditional heteroscedasticity (GARCH), autoregressive conditional heteroscedasticity (ARCH), and fully modified ordinary least square (FMOLS) in analysis of coffee output reaction to climate change and commodity price volatility. The findings show that coffee output in Nigeria is influenced by climate change and the international commodity price of coffee. The study demonstrates the potential benefits of improving coffee output and export through climate mitigation and adaptation measures and revival of agricultural commodity marketing in Nigeria and o...
Journal of Developing Countries Studies, 2013
Although there is a fairly extensive literature on the theory of foreign direct investment, not m... more Although there is a fairly extensive literature on the theory of foreign direct investment, not much of it is useful in providing insights into its effect on domestic entrepreneurship in Nigeria. This paper looks at the theoretical basis for business mentoring, examines the influence of foreign direct investment (FDI) inflow on domestic entrepreneurship in Nigeria’s manufacturing sub-sector from 1973 to 2010 while employing OLS technique. Results identified a positive and highly significant effects of each of human capital and infrastructural development on activities on Nigeria’s manufacturing sub-sector while each of manufacturing FDI, market size and anti-FDI policies has a negative and highly significant effect on activities in Nigeria’s manufacturing subsector. This paper therefore recommends that policies on investment should be geared towards wooing foreign investors into the manufacturing sub-sector while giving the diversification of the country’s productive base a top prio...
IOSR Journal of Economics and Finance, 2013
The paper reexamines the nexus between financial sector development and economic growth in Nigeri... more The paper reexamines the nexus between financial sector development and economic growth in Nigeria over the period 1970-2011. Prior to the study, most of the earlier works use financial deepening to proxy financial development and conclude that financial development do not cause growth. The paper seeks to investigate the hypothesis that financial development is positively related to growth. Using four measuresratios of broad money (MSY), bank deposit liabilities (BDY), domestic credit (DCY), private sector credit (PSY)-to proxy financial development, and adopting Granger causality tests in a VAR framework, the empirical result suggests that financial sector development is positively related to and therefore causes economic growth just as finance is growth dependent-a case of bi-directional causality. The variance decomposition shows that the variations in DCY and PSY are significantly and dominantly affected by MSY. This suggests, among others, that expansion of savings by DMBs through saver-oriented real deposit rate (RDR) translate to domestic credit with higher proportion utilized by the private sector. Among other measures, the establishment of a functional Asset Management Corporation should be hastened to free DMBs from non-performing loans and enhance their ability to expand private sector credits. Equally, to sustain the influence of finance on growth and vice versa, the current reforms in the financial sector should be sustained while focusing on complementary and coordinated institutional and structural reforms in the real sector to ensure simultaneity in the development of the financial and real sectors of the economy.
International Journal of Economics and Financial Issues, 2018
Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financ... more Foreign Direct Investment (FDI) is one of the sources used as a wedge to bridge the saving-financial requirement gap and many policies and programmes are mapped out to attract FDI in Nigeria. The study was aimed at examining whether source of FDI matter for growth in Nigeria. Using Autoregressive Distributed Lag (ARDL) bound test model, we disaggregated FDI sources to determine individual impact, and then add interest rate and exchange rate to capture macroeconomic conditions of the economy. The results show while inflow from Asian and African countries had significant and positive impact on GDP growth rate, FDI from USA and EU countries had the opposite effect. Therefore, the impacts of FDI indeed differs depending on the country of origin and this is caused by differences in market structures of host country and country of origin, business system, institutions, policy formulation process, organizational features, level of development etc.
ERN: Other Development Economics: Macroeconomic Issues in Developing Economies (Topic), 2019
Incidences of rising income inequality in Nigeria have raised questions on its link with globaliz... more Incidences of rising income inequality in Nigeria have raised questions on its link with globalization. Using quarterly time-series data on an empirical model which is hinged on Stolper-Samuelson theorem, the Johnson cointegration test and error correction model showed that globalization, technology and foreign direct investment significantly heightened income inequality while that of productivity significantly diminished income inequality in Nigeria in the long run. This study recommends support for domestic entrepreneurship through import substitution and export promotion strategies so that Nigeria to enjoy gains from globalization. Furthermore, increased access to public service such as health care and high quality education among the poor and vulnerable is desirable for sustained increase in labour productivity.
PSN: Economic Growth (Topic), 2012
Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to ... more Developing countries, Nigeria inclusive, face a shortage of investible funds and hence strive to attract foreign direct investment (FDI) because of its acknowledged potentials as a tool of economic development. This study investigated the empirical relationship between FDI and economic growth in Nigeria. Secondary data sourced mainly from CBN publications were used in the OLS and granger causality regression equations conducted for the period 1986 to 2010. Although FDI coefficient in the regression result showed that about 13% of variations in GDP are accounted for by a percent increase in FDI, their relationship is statistically insignificant. The regression result also showed that other variables in the model – gross fixed capital formation (GFCF), net exports (NXP), consumer price index (CPI), and exchange rate (EXR) – impacted on the GDP. The result of the granger causality test showed a bi-directional causality between FDI and GDP, that is, each granger cause the other. On t...
Evidences in the literature show that Nigeria’s consumptionist nature as well as its heavy depend... more Evidences in the literature show that Nigeria’s consumptionist nature as well as its heavy dependence on crude oil income streams, have created room for growing unemployment, inflation and poverty rates as well as the recent shrink in its GDP growth rate. More so, the unpredictable movements in global oil price demonstrate the need for Nigeria to diversify its revenue streams in order to remain relevant and ranked amongst the vigorous economies of Africa. Based on the United Nations Industrial Organization (UNIDO)/World Bank success yardsticks and with its theoretical framework rooted in the endogenous growth model, this paper interrogated the domestic macroeconomic drivers of economic diversification in Nigeria. Employing time series for the period 1981 to 2016 data from the World Development Indicators, the study found that the drivers of economic diversification were improved infrastructure, increased credit from financial sector, reduction in lending rate and increased domestic ...