Fadiya Bamidele | University of Lagos (original) (raw)

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Papers by Fadiya Bamidele

European Scientific Journal, Jun 28, 2012

International Business Research, 2013

Empirical studies on currency in circulation have been the object of great attention by economist... more Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregression Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth. This findings brings to the fore that the cashless economy been proposed by the CBN will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal framework that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria. The study also revealed that demand deposit granger causes economic growth so CBN should increase the deposit rate which will serve as incentive and enforce the existing financial regulations that will protect depositors.

International Journal of Economics and Finance, 2012

This paper addresses the effects of macroeconomic volatility on government consumption expenditur... more This paper addresses the effects of macroeconomic volatility on government consumption expenditure (GCE) in Nigeria well as the burdens and challenges it has been imposing on public welfare. Methodologically, a dynamic macroeconometric stochastic model was used to analysis the nature of the impacts, where GCE is presumed to depend upon changes in various indicators of macroeconomic performances. We empirically mode the relationship between GCE and the macroeconomy with a hybrid model that employs a reduced form coefficients of simultaneous equation models, to capture the dynamic interactions among the data and a structural economic model to describe the contemporaneous relationship between the variables. The Structural Auto-Regression (SVAR) process including the GCE, real exchange rate, general price level (inflation rate), unemployment rate and debt service obligation, is estimated over the period 1980-2008. The model ascertained the extent in which volatility of the macroeconomics does lead to a decline in GCE. We find that, the GCE response to structural one innovation appears to be greater in inflation than other endogenous and exogenous variables that is, an economic shock to inflation effect is stronger on the GCE at longer horizon. Also, inflation innovations play a larger role in explaining GCE forecast error variance in the short run than they do in the long run and this generates negative net effects on public welfare in the short run than long run.

This study examines the implications of cashless banking, with a view to exposing the possible ch... more This study examines the implications of cashless banking, with a view to exposing the possible challenges and prospects it poses to the Nigerian economy whilst employing aggregated approach. Analytically, this study employs descriptive statistical to highlights/overview the effectiveness of the cash-less policy of the CBN in Nigeria. This study was informed by the rising doubts as regards the effectiveness of various economic policies in achieving developmental goals of Nigeria. Moreover, the recent evolution of electronic money poses interesting questions of policy makers all over the world. This study also seeks to evaluate policies of the Central Bank of Nigeria as well as proffer valuable recommendations on the execution of cashless banking in Nigeria. The study presented significant recommendations: availability of sufficient and well-functioning infrastructural facilities (notably electricity), harmonization of fiscal and monetary policy, regular assessment of the performance of cashless banking channels (individually and collectively), consideration of the present state and structure of the economy, redesign of monetary policy framework and greater efforts towards economic growth whilst managing inflation. In inclusion, the shift towards a cashless Nigeria seems to be beneficial though it comes with high level of concerns over security and management of cost savings resulting from its implementation.

Empirical studies on currency in circulation have been the object of great attention by economist... more Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregression Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth. This findings brings to the fore that the cashless economy been proposed by the CBN will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal framework that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria. The study also revealed that demand deposit granger causes economic growth so CBN should increase the deposit rate which will serve as incentive and enforce the existing financial regulations that will protect depositors.

ABSTRACT Empirical studies on currency in circulation have been the object of great attention by... more ABSTRACT
Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregresstion Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP, sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth in Nigeria. The Granger causality test show that causality runs from currency in circulation to normal GDP and not vice versa. This findings brings to the fore that the cashless economy been proposed by the Central Bank of Nigeria (CBN) will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal frame work that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria.

European Scientific Journal, Jun 28, 2012

International Business Research, 2013

Empirical studies on currency in circulation have been the object of great attention by economist... more Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregression Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth. This findings brings to the fore that the cashless economy been proposed by the CBN will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal framework that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria. The study also revealed that demand deposit granger causes economic growth so CBN should increase the deposit rate which will serve as incentive and enforce the existing financial regulations that will protect depositors.

International Journal of Economics and Finance, 2012

This paper addresses the effects of macroeconomic volatility on government consumption expenditur... more This paper addresses the effects of macroeconomic volatility on government consumption expenditure (GCE) in Nigeria well as the burdens and challenges it has been imposing on public welfare. Methodologically, a dynamic macroeconometric stochastic model was used to analysis the nature of the impacts, where GCE is presumed to depend upon changes in various indicators of macroeconomic performances. We empirically mode the relationship between GCE and the macroeconomy with a hybrid model that employs a reduced form coefficients of simultaneous equation models, to capture the dynamic interactions among the data and a structural economic model to describe the contemporaneous relationship between the variables. The Structural Auto-Regression (SVAR) process including the GCE, real exchange rate, general price level (inflation rate), unemployment rate and debt service obligation, is estimated over the period 1980-2008. The model ascertained the extent in which volatility of the macroeconomics does lead to a decline in GCE. We find that, the GCE response to structural one innovation appears to be greater in inflation than other endogenous and exogenous variables that is, an economic shock to inflation effect is stronger on the GCE at longer horizon. Also, inflation innovations play a larger role in explaining GCE forecast error variance in the short run than they do in the long run and this generates negative net effects on public welfare in the short run than long run.

This study examines the implications of cashless banking, with a view to exposing the possible ch... more This study examines the implications of cashless banking, with a view to exposing the possible challenges and prospects it poses to the Nigerian economy whilst employing aggregated approach. Analytically, this study employs descriptive statistical to highlights/overview the effectiveness of the cash-less policy of the CBN in Nigeria. This study was informed by the rising doubts as regards the effectiveness of various economic policies in achieving developmental goals of Nigeria. Moreover, the recent evolution of electronic money poses interesting questions of policy makers all over the world. This study also seeks to evaluate policies of the Central Bank of Nigeria as well as proffer valuable recommendations on the execution of cashless banking in Nigeria. The study presented significant recommendations: availability of sufficient and well-functioning infrastructural facilities (notably electricity), harmonization of fiscal and monetary policy, regular assessment of the performance of cashless banking channels (individually and collectively), consideration of the present state and structure of the economy, redesign of monetary policy framework and greater efforts towards economic growth whilst managing inflation. In inclusion, the shift towards a cashless Nigeria seems to be beneficial though it comes with high level of concerns over security and management of cost savings resulting from its implementation.

Empirical studies on currency in circulation have been the object of great attention by economist... more Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregression Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth. This findings brings to the fore that the cashless economy been proposed by the CBN will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal framework that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria. The study also revealed that demand deposit granger causes economic growth so CBN should increase the deposit rate which will serve as incentive and enforce the existing financial regulations that will protect depositors.

ABSTRACT Empirical studies on currency in circulation have been the object of great attention by... more ABSTRACT
Empirical studies on currency in circulation have been the object of great attention by economists in the developing countries due to its vital role in achieving effective electronic payment system by the monetary authorities. In this disquisition, analysis were carried out to examine whether currency in circulation (CIC) promotes economic performance, using Vector Autoregresstion Model (VARM) and VAR Granger Causality Test, annual data of all variables for the period 1960-2011 were employed. According to the results, the coefficient of currency in circulation when lagged by one period is positive but statistically insignificant at 5% contrary to expectations. The statistically insignificant relationship that exists between the monetary instruments such as; exchange rate, inflation rate, normal interest rate, high power money, currency in circulation, demand deposit and normal GDP, sheds more light on how ineffective monetary policies adopted by the Central Bank of Nigeria (CBN) for promoting economic growth in Nigeria. The Granger causality test show that causality runs from currency in circulation to normal GDP and not vice versa. This findings brings to the fore that the cashless economy been proposed by the Central Bank of Nigeria (CBN) will have a significant impact on the performance of Nigeria economy. The government should provide adequate infrastructure and all enabling legal frame work that will help the informal sector of the economy to embrace the cashless payment system, so as not to erode the diminutive contribution of the informal sector to GDP in Nigeria.