Bamikole Olanrewaju | University of Manitoba (original) (raw)
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Papers by Bamikole Olanrewaju
This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican ... more This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican economy. The results of the GMM time series estimation show the existence of habit formation by Jamaican consumers. Past consumption habits affect the growth rate of consumption, consequently in order to build the confidence of consumers in the Jamaican economy, the inflation rate, foreign and domestic interest rates have to be moderately adjusted to encourage good consumption habits.
This paper looks at the economic impacts of taxes, transfers or social benefits, and the minimum ... more This paper looks at the economic impacts of taxes, transfers or social benefits, and the minimum wage on unemployment rates in Canada with an application to the youth labour market. We will use both theoretical and empirical approaches in examining the impacts of these aforementioned factors on unemployment. First, we will look at the impact of these factors on employment and unemployment in the absence of frictions, a case where the market is allowed to adjust freely and then, we will look at how unemployment and employment respond to taxes, unemployment benefits and the minimum wage in the presence of frictions. We focus on the 15-24 age group category and the results that emerge out of our analysis show that appropriate adjustment of the payroll tax rate would be more useful in reducing the unemployment rate of youths aged 17-24; an increase in the payroll tax rate reduces the unemployment rate while a jump in the minimum wage increases the unemployment rate.
Economists have often emphasized the importance of efficient capacity utilization in attempts at ... more Economists have often emphasized the importance of efficient capacity utilization in attempts at increasing manufacturing productivity growth rate. In line with this, this study is carried out to evaluate the impact of capacity utilization on the manufacturing productivity index which is used as a proxy for manufacturing productivity growth. The study makes use of cointegration analysis to analyze the data which cover years . The results of the cointegration analysis reveal that capacity utilization would in the long run negatively impact the manufacturing productivity growth because of low electricity supply and government's spending on inefficient sectors. The empirical results also show that exchange rate will decrease the value of the manufacturing productivity growth rate in the long run. The study concludes by stressing on the need to improve the average capacity utilization rates in most manufacturing sub-sectors and it also suggests several strategies that can be employed to reverse the ugly trend of poor capacity utilization and embarrassing growth rate of manufacturing productivity one of which is to accelerate electricity supply to industrial firms.
The paper examines the stability of two functions, interest rate and foreign reserves, using the ... more The paper examines the stability of two functions, interest rate and foreign reserves, using the Autoregressive Distributed Lag Model of Pesaran et al (2001). More importantly, we analyze quantitatively and the qualitatively the influence of foreign reserves and interest spread on the velocity of money in Nigeria from 1980 to 2013. Multiple long run relationships between the variables are established in the model, however only the velocity of money has stable long and short run relationships with market capitalization and reserves. The policy implication of this result is that the Federal Government of Nigeria needs to stabilize the lending, time deposit rates and foreign reserves in order to improve the velocity of money and market capitalization in the stock market.
In this paper, the applicability of the Lewis development model to the Nigerian economy is examin... more In this paper, the applicability of the Lewis development model to the Nigerian economy is examined. There are certain aspects of the model than can clearly be adopted provided there are structural changes in the urban areas that would facilitate the absorption of the surplus labour flowing from the rural areas.
Hong Kong and Guyana are two different countries with diverse political and socioeconomic situati... more Hong Kong and Guyana are two different countries with diverse political and socioeconomic situations that started at the same point in the 1960s. However, while the former was fully able to accelerate its growth and development much faster the latter's attempt at development was thwarted. In this work, we intend to investigate the factors that have led to wide disparities in socio-economic development between the two countries. This study also attempts to look at the areas where Hong Kong has a comparative advantage over other countries and investigates the applicability of some of Hong Kong's best policy practices to a Caribbean economy like Guyana. The human development index and certain socio-economic indicators in their entirety are employed to effectively compare the development performance of the two countries.
This paper examines the impact of minimum wages on average wage earnings in two selected countrie... more This paper examines the impact of minimum wages on average wage earnings in two selected countries, Trinidad and Tobago and Jamaica using a time-series data for the latter and a panel data for both. The methodology of GMM time-series estimation is used on the Jamaican data (1980-2011) and a Two Stage Least Square Regression model is used for the panel data (1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011). The impacts of minimum wage on average earnings are mixed. In the time-series model, the real minimum wage has a negative and significant impact on the real average earnings, a unit change in the minimum wage decreases earnings by $2. However, in the panel model, the minimum wage positively impacts the real average wage by the same amount. Thus, the minimum wage alone cannot be used to boost average earnings; emphasis needs to be placed on the productivity of workers and the cost of doing business in the Caribbean.
This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican ... more This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican economy. The results of the GMM time series estimation show the existence of habit formation by Jamaican consumers. Past consumption habits affect the growth rate of consumption, consequently in order to build the confidence of consumers in the Jamaican economy, the inflation rate, foreign and domestic interest rates have to be moderately adjusted to encourage good consumption habits. JEL Classification Codes: D12, E21, C01
Work in Progress by Bamikole Olanrewaju
In this paper, we will apply the McCall Search Theory and Lake Model to examine the steady state ... more In this paper, we will apply the McCall Search Theory and Lake Model to examine the steady state values of employment and unemployment rate and also study the stocks of Employment and Unemployment over time. The results show that the Nigerian economy converges to steady employment rate after 40 periods, steady state unemployment rate after 30 periods while the Canadian economy reaches its steady state in these variables only after 20 periods when hiring rate is exogenous. These results are reflective of the birth and death rates in both countries
This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican ... more This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican economy. The results of the GMM time series estimation show the existence of habit formation by Jamaican consumers. Past consumption habits affect the growth rate of consumption, consequently in order to build the confidence of consumers in the Jamaican economy, the inflation rate, foreign and domestic interest rates have to be moderately adjusted to encourage good consumption habits.
This paper looks at the economic impacts of taxes, transfers or social benefits, and the minimum ... more This paper looks at the economic impacts of taxes, transfers or social benefits, and the minimum wage on unemployment rates in Canada with an application to the youth labour market. We will use both theoretical and empirical approaches in examining the impacts of these aforementioned factors on unemployment. First, we will look at the impact of these factors on employment and unemployment in the absence of frictions, a case where the market is allowed to adjust freely and then, we will look at how unemployment and employment respond to taxes, unemployment benefits and the minimum wage in the presence of frictions. We focus on the 15-24 age group category and the results that emerge out of our analysis show that appropriate adjustment of the payroll tax rate would be more useful in reducing the unemployment rate of youths aged 17-24; an increase in the payroll tax rate reduces the unemployment rate while a jump in the minimum wage increases the unemployment rate.
Economists have often emphasized the importance of efficient capacity utilization in attempts at ... more Economists have often emphasized the importance of efficient capacity utilization in attempts at increasing manufacturing productivity growth rate. In line with this, this study is carried out to evaluate the impact of capacity utilization on the manufacturing productivity index which is used as a proxy for manufacturing productivity growth. The study makes use of cointegration analysis to analyze the data which cover years . The results of the cointegration analysis reveal that capacity utilization would in the long run negatively impact the manufacturing productivity growth because of low electricity supply and government's spending on inefficient sectors. The empirical results also show that exchange rate will decrease the value of the manufacturing productivity growth rate in the long run. The study concludes by stressing on the need to improve the average capacity utilization rates in most manufacturing sub-sectors and it also suggests several strategies that can be employed to reverse the ugly trend of poor capacity utilization and embarrassing growth rate of manufacturing productivity one of which is to accelerate electricity supply to industrial firms.
The paper examines the stability of two functions, interest rate and foreign reserves, using the ... more The paper examines the stability of two functions, interest rate and foreign reserves, using the Autoregressive Distributed Lag Model of Pesaran et al (2001). More importantly, we analyze quantitatively and the qualitatively the influence of foreign reserves and interest spread on the velocity of money in Nigeria from 1980 to 2013. Multiple long run relationships between the variables are established in the model, however only the velocity of money has stable long and short run relationships with market capitalization and reserves. The policy implication of this result is that the Federal Government of Nigeria needs to stabilize the lending, time deposit rates and foreign reserves in order to improve the velocity of money and market capitalization in the stock market.
In this paper, the applicability of the Lewis development model to the Nigerian economy is examin... more In this paper, the applicability of the Lewis development model to the Nigerian economy is examined. There are certain aspects of the model than can clearly be adopted provided there are structural changes in the urban areas that would facilitate the absorption of the surplus labour flowing from the rural areas.
Hong Kong and Guyana are two different countries with diverse political and socioeconomic situati... more Hong Kong and Guyana are two different countries with diverse political and socioeconomic situations that started at the same point in the 1960s. However, while the former was fully able to accelerate its growth and development much faster the latter's attempt at development was thwarted. In this work, we intend to investigate the factors that have led to wide disparities in socio-economic development between the two countries. This study also attempts to look at the areas where Hong Kong has a comparative advantage over other countries and investigates the applicability of some of Hong Kong's best policy practices to a Caribbean economy like Guyana. The human development index and certain socio-economic indicators in their entirety are employed to effectively compare the development performance of the two countries.
This paper examines the impact of minimum wages on average wage earnings in two selected countrie... more This paper examines the impact of minimum wages on average wage earnings in two selected countries, Trinidad and Tobago and Jamaica using a time-series data for the latter and a panel data for both. The methodology of GMM time-series estimation is used on the Jamaican data (1980-2011) and a Two Stage Least Square Regression model is used for the panel data (1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011). The impacts of minimum wage on average earnings are mixed. In the time-series model, the real minimum wage has a negative and significant impact on the real average earnings, a unit change in the minimum wage decreases earnings by $2. However, in the panel model, the minimum wage positively impacts the real average wage by the same amount. Thus, the minimum wage alone cannot be used to boost average earnings; emphasis needs to be placed on the productivity of workers and the cost of doing business in the Caribbean.
This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican ... more This paper seeks to empirically verify if the habit persistence phenomenon holds in the Jamaican economy. The results of the GMM time series estimation show the existence of habit formation by Jamaican consumers. Past consumption habits affect the growth rate of consumption, consequently in order to build the confidence of consumers in the Jamaican economy, the inflation rate, foreign and domestic interest rates have to be moderately adjusted to encourage good consumption habits. JEL Classification Codes: D12, E21, C01
In this paper, we will apply the McCall Search Theory and Lake Model to examine the steady state ... more In this paper, we will apply the McCall Search Theory and Lake Model to examine the steady state values of employment and unemployment rate and also study the stocks of Employment and Unemployment over time. The results show that the Nigerian economy converges to steady employment rate after 40 periods, steady state unemployment rate after 30 periods while the Canadian economy reaches its steady state in these variables only after 20 periods when hiring rate is exogenous. These results are reflective of the birth and death rates in both countries