scholarly journals Infrastructures Development, Environmental Quality and Economic Growth in Nigeria

2021 ◽  
pp. 097493062110584
Author(s):  
Ademola E. Ojo ◽  
Ditimi Amassoma
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Environmental Quality ◽  
Time Series Data ◽  
Human Life ◽  
Value Added ◽  
Green Economy ◽  
Series Data ◽  
Long Run ◽  
Bound Test

The Earth as a planet supports human life, living and activities, attracting extensive and intensive socioeconomic influences on the economy. Such activities like infrastructures development exerts increasing and divers environmental quality concerns and hence the economic growth. While these variables appear interrelated due to many factors including population growth, urbanisation, etc. However, the relationship between infrastructures, environment and economic growth is not largely known especially in Nigeria. This study therefore investigated their relationship using time series data between 1990 and 2019 by adopting Co-integration estimation technique through the Bound test approach of auto regressive distributive lag method using percentage share of building and construction sector of gross domestic product (GDP), carbon dioxide, population growth GDP growth rate, etc. as variables. The study revealed that the infrastructures development and environmental quality explain economic growth and have both short and long run relationships while specifically population growth and agriculture, forestry, fishing, value added variables are positively significant to economic growth. The findings evidences of both short and long run relationships among the variables are significant and it is consequently recommended that new roles for infrastructure sets and production processes should consider environmental quality mindsets to achieve positive green economy outcomes in Nigeria. JEL Classification: O18, O44, Q5

scholarly journals Infrastructures Development, Environmental Quality And Economic Growth In Nigeria

2021 ◽  
Author(s):  
Ademola Ojo ◽  
Ditimi J. Amassoma
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Population Growth ◽  
Environmental Quality ◽  
Time Series Data ◽  
Human Life ◽  
Jel Classification ◽  
Series Data ◽  
Annual Growth Rate ◽  
Bound Test

Abstract The earth as a planet supports human life, living and activities that attract extensive and intensive socioeconomic influences on the environment and the economy. Such activities like Infrastructures development exert increasing and divers environmental quality concerns and hence on economic growth. While these variables appear interrelated due to many factors including population growth, urbanization, industrialization etc., however, the nature of the interrelationship is not largely known especially in Nigeria. This study therefore investigated and examine their relationship using time series data between 1990-2019 by adopting Co-Integration estimation technique through the Bound Test approach of Auto Regressive Distributive Lag (ARDL) method, using percentage share of Building and Construction Sector (BCS) of GDP, Carbon dioxide percentage of fuel combustion (CTE), annual growth rate of Agriculture (AFF), population growth, GDP growth rate etc. as variables. The study revealed that infrastructures development, environmental quality explains economic growth and they all have both short and long run relationship while specifically population growth and AFF variables are positively significant to economic growth. The finding evidences the significance of the relationship and consequently recommended new roles for infrastructure sets and production processes that consider environmental quality mindsets to achieve positive green economic growth outcomes in Nigeria.JEL Classification: Q5, O18, O44

scholarly journals An Econometric Validation of Malthusian Theory: Evidence in Nigeria

2018 ◽  
Vol 7 (1) ◽  
pp. 77-90
Author(s):  
Musa Abdullahi Sakanko ◽  
Joseph David
Keyword(s):  
Population Growth ◽  
Food Production ◽  
Time Series Data ◽  
Control Measure ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Bound Test ◽  
Malthusian Theory

Rising population is an asset, provided, the skills of the workforce are used to the maximum extent. If not appropriately channelized, it can be a liability for a nation. A skilled and hardworking population can emerge as a foundation for a country’s development. This study examines the validity of Malthusian Theory in Nigeria using time series data from 1960 to 2016, employs the ARDL bound test techniques. The result shows that in the long-run, population growth and food production move proportionately, while population growth poses a depleting effect on food production in the short-run, thus validating the incidence of Malthusian impact in Nigerian economy in the short-run. The researcher recommended the government should strategize plans, which will further intensify family planning and birth control measure, compulsory western education and revitalization of the agricultural sector.DOI: 10.150408/sjie.v7i1.6461

scholarly journals The Relationship between Electric Power Consumption, Foreign Direct Investment and Economic Growth in Sri Lanka

2020 ◽  
pp. 21-31
Author(s):  
S. Maheswaranathan
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Sri Lanka ◽  
Direct Investment ◽  
Time Series Data ◽  
Empirical Finding ◽  
Electricity Consumption ◽  
Series Data ◽  
Long Run ◽  
Bound Test

Purpose: This paper investigates the long run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Design/Methodology/Approach: The annual time series data over the period 1970–2017 is considered to this study. Augmented Dickey–Fuller (ADF) unit root analysis is employed for examining the stationary properties of the variables. Consequently, Autoregressive Distributed Lag (ARDL) analysis is employed to examining the short- run and long-run relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka. Further, this study used the diagnostic tests such as the residual normality test, heteroskedasticity and serial autocorrelation tests for misspecification to validate the parameter estimation outcomes achieved by the estimated model. CUSUM test is applied to test the stability of the model. Collected data were analyzed using STATA version 15. Findings: The findings of the bound test confirm that the variables are cointegrated. Further the results reveal that there is a statistically positive significant relationship between electricity consumption, foreign direct investment and economic growth in Sri Lanka in the long run and short term. The empirical finding reveals that one percent increase in electricity consumption and foreign direct investment increases the GDP by 1.5 percent and 12.9 percent in the long run respectively.

scholarly journals Economic Growth and Environmental Pollution in Brunei: ARDL Bounds Testing Approach to Cointegration

2019 ◽  
pp. 1-11
Author(s):  
Issa Moh’d Hemed ◽  
Suleiman Malik Faki ◽  
Salim Hamad Suleiman
Keyword(s):  
Economic Growth ◽  
Environmental Pollution ◽  
Time Series Data ◽  
Series Data ◽  
Kuznets Curve ◽  
Bounds Testing ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Bound Test

Aims: This study examined the short run and long run dynamic relationship between economic growth and environmental pollution in Brunei. We adoptedAuto Regressive Distributed Lag (ARDL) model to scrutinize the existence of the Environmental Kuznets Curve (EKC) among the studying variables by using time series data cover the period of 1974 to 2014. Methodology: The ARDL bound test revealed the existence of long-run relationship among the integrated variables when CO2 chosen as a dependent variable. Results: The results support the existences of EKC hypotheses in the long-run whereas in the short-run an inverted U-shaped curve was not confirmed between GDP and CO2 in Brunei. The results of Granger causality based on VECM analysis have shown unidirectional causality runs from economic growth to CO2 in the short run. Further analysis through stability test indicates the coefficients in the model are stable and do not suffers with structural break within the time taken in the study. Conclusion: The government of Brunei should proceed to target the sustainable means of production, which has an environmental friendly and consumes less energy to enhance economic growth and maintain environmental quality in the long run.

scholarly journals The Impact of Macroeconomic Factors on Manufacturing Sector Value Added in Ethiopia: An Application of Bounds Testing Approach to Cointegration

2020 ◽  
Vol 23 (1) ◽  
Author(s):  
Dagim Tadesse Bekele ◽  
Meskerem Teka Haile
Keyword(s):  
Exchange Rate ◽  
Time Series Data ◽  
Manufacturing Sector ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Macroeconomic Variables ◽  
Long Run ◽  
The Impact ◽  
Bound Test

The role of the manufacturing sector for the economic growth and structural change is very low in Ethiopia and performing less compering with that of the other sectors in the economy. So, this research tried to look at how different macroeconomic variables affect the manufacturing sector value added by using annual time series data from 1982 to 2018 estimated by Autoregressive-Distributed Lag (ARDL). The result from the Bound test shows manufacturing sector value added has a long-run relationship with macroeconomic variables in the model. In the long-run, general inflation rate, exchange rate, and trade openness have a significant negative effect on the manufacturing sector value-added. In contrast, general government expenditure has a significant positive effect. Also, the Error Correction model shows an adjustment towards the long-run equilibrium of the manufacturing sector value-added. So, the government has to control the general inflation level, promote demand for domestic manufacturing products and competitiveness of domestic firms, and strengthen the backward link of the sector to decrease its import-input dependency to reduce the effect of exchange rate depressions. Lastly, effective and efficient government expenditure will have to be used to increase the manufacturing sector value-added.

scholarly journals The Impact of Corruption on Economic Growth in Nigeria

2021 ◽  
Vol 7 (2) ◽  
pp. 27-50
Author(s):  
Muftau Olaiya Olarinde ◽  
Jacob Msonter Jonathan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Positive Impact ◽  
Capital Expenditure ◽  
External Debt ◽  
Series Data ◽  
Long Run ◽  
The Impact ◽  
Bound Test

This study empirically analyses the impact of corruption on economic growth in Nigeria, using time series data for the period 1980-2015 analyzed through the ARDL technique.  The result of the Bound test confirmed the existence of Cointegration among the variables. The ARDL results revealed that corruption has a significant negative influence on economic growth both in the short run and long run. It was further confirmed that external debt, agricultural output, and human capital development positively impact growth while FDI and inflation rate endanger growth, in both the short and long run. The result of the interacting term revealed the damaging influence of corruption on the positive impact of human capital expenditure and external debt on economic growth. Based on the findings of the study, it is obvious that achievement of growth that is sustainable will remain elusive in a corrupt environment. The study, therefore recommends that government should strengthen the activities of the anti-corruption agencies in Nigeria to reduce the rate of corruption.

Relating energy consumption to real sector value added and growth in a developing economy

2019 ◽  
Vol 13 (1) ◽  
pp. 166-182 ◽  
Author(s):  
Ebere Ume Kalu ◽  
Pius Bala Daniel ◽  
Uchenna Florence Nwafor ◽  
Chinwe R. Okoyeuzu ◽  
Okoro E.U. Okoro ◽  
...  
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Time Series Data ◽  
Value Added ◽  
Industrial Sector ◽  
Series Data ◽  
Content Type ◽  
Development Indicators ◽  
Distributed Lag ◽  
Bound Test

Purpose The main aim of this study was to examine whether any relationship exists between energy consumption and value added of the agricultural and industrial sector as well as the overall growth rate of the Nigerian economy. Design/methodology/approach The study used annualized time series data from 1971 to 2014 drawn from the World Bank Development Indicators, adopting an autoregressive distributed lag technique in the data analyses as well as the bound test and error correction representation. Findings There is a very strong evidence of the existence of a long-run relationship between energy consumption and indicators of economic growth. There are very strong proofs that economic growth and agricultural value added adjust to the shocks and dynamics of the studied energy-consumption-related variables while manufacturing value added proved otherwise. Originality value No study to the best of our knowledge has brought together aggregate growth, agricultural value added and manufacturing value added in the investigation of the energy consumption and economic growth nexus in one study using the Nigerian stylized economic environment. This represents the value added of this study and shows its originality.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH IN MALAYSIA FROM 1980-2018

2020 ◽  
Vol 5 (2) ◽  
pp. 55-63
Author(s):  
Khairunisah Kamsin ◽  
James Alin ◽  
Mori Kogid
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Wald Test ◽  
Real Effective Exchange Rate ◽  
Series Data ◽  
Long Run ◽  
The Impact ◽  
Bound Test

This study analyses the impact of trade openness on economic growth, between 1980-2018. This study using the unit root test (ADF) and the Philip and Perron (PP) test to examine the stationary of the time series data, the ARDL test to show the cointegration and long-run relationship between variables, and the Wald test to show the short-term effect of the variables. The finding shows that all variables have a long-run relationship with economic growth and the bound test shows that foreign direct investment (FDI) and the Real Effective Exchange Rate (REER) have a positive and significant relationship with economic growth. The study also found that openness is correlated with economic growth in Malaysia.

scholarly journals Financial Development and Economic Growth in Nepal: An ARDL Bound Test Approach

2021 ◽  
Author(s):  
Pradeep Panthi
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Time Series Data ◽  
Series Data ◽  
Reverse Causality ◽  
Distributed Lag ◽  
Dynamic Relationship ◽  
Long Run ◽  
Domestic Credit ◽  
Bound Test

Abstract This study empirically examines the dynamic relationship between financial development and economic growth in Nepal using annual time series data from 1985 to 2016. The financial development is measured by domestic credit to the private sectors, domestic credit to the private sectors by banks, broad money (M2) and net domestic credit, separately. All are ratios to GDP. The economic growth is measured by real GDP per capita. The bound test approach of cointegration under autoregressive distributed lag (ARDL) model reveals that Nepal’s financial development and economic growth are cointegrated with bi-directional causality in the long-run. Thus, the study concludes that financial development and economic growth positively and significantly impact each other. The causal effects running from financial development to economic growth are portent then economic growth to financial development. However, the speed of adjustment towards long-run equilibrium, directing from economic growth to financial development is reasonably robust. There is one-directional reverse causality running from economic growth to financial development in the short-run. Therefore, the study suggests policymakers to prioritize policies to develop a well-functioning financial sector to enhance economic growth, especially for developing countries like Nepal.JEL ClassificationsG21, C22, F43, O11, O16

scholarly journals Contribution of Agriculture Sector in Economic Growth of Pakistan: An Empirical Analysis

2021 ◽  
Vol 5 (2) ◽  
pp. 103-120
Author(s):  
Sumia Bint Zaman ◽  
Muhammad Ishaq ◽  
Muhammad Azam Niazi
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Time Series Data ◽  
Positive Impact ◽  
Correction Term ◽  
Value Added ◽  
Series Data ◽  
Agriculture Sector ◽  
Real Gdp ◽  
Long Run

There has been controversy in the field of development economics about the significance of the role of agriculture sector in economic growth. Going through the data, it indicates that agriculture sector is significant contributor to the economy of Pakistan as it contributes about 19% in national GDP. This study was designed to statistically test the contribution of agriculture sector in economic growth of Pakistan through estimation of relationship between agriculture sector and Pakistan’s economic growth using Autoregressive Distributed Lag (ARDL) bounds test and Error Correction Model (ECM). Time series data on selected variables was utilized from 1961-2018. Study found that real agricultural value added has a significant positive impact on real GDP per capita in the long-run where one percent increase in real agricultural value added increases the real GDP/capita by 0.35%. This indicated that the promotion of agriculture sector leaves far reaching effects with respect to economic growth of the country. These results advocated for the development of agriculture sector in line with the long-term goals of economic growth and emphasized in investing in agriculture sector. Coefficient of error correction term (ECT) is -0.62 meaning that if there is any disequilibrium, it will restore @ 62 percent in the first period. Results also proved the importance of capital formation both the physical capital and human capital. Finding suggested that we should investment in human health to enhance the economic growth as suggested by exogenous growth theory. Moreover, it can also be suggested to create conducive environment and economic opportunities to reap the benefits of demographic dividends of decreased mortality in the long-run. As per analysis, maintaining stability is critically important for economic growth. Moreover, literature hypothesize the positive effect of TOT for economic growth, but analysis indicated that TOT has not been able to put any significant impact on economic growth. Further, trend analysis also pointed out that TOT has been fluctuating over the time. It can be inferred from the analysis that there is need to stabilize TOT and restructure the exports of the country to generate the significant positive impact.

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