scholarly journals Does the Capital Market Spur Economic Growth? Evidence from Nigeria

2017 ◽  
Vol 11 (1) ◽  
pp. 90-99
Author(s):  
Taiwo Adewale Taiwo Adewale Muritala
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Negative Impact ◽  
Unit Root Test ◽  
Development Program ◽  
Least Square ◽  
Secondary Sources ◽  
Augmented Dickey Fuller ◽  
The Government ◽  
The Capital Market

This study critically examines the relationship between the capital market and economic growth of Nigeria. Data are mainly obtained from secondary sources, the CBN statistical bulletin over the period of 1980–2015. The results from the augmented Dickey Fuller unit root test show that all the variables were stationary at the level except RGDP, MCAP and TNI, which were stationary at the first difference. The results from Ordinary Least Square (OLS) reveal that total new issue, market capitalization, and total listing positively impact  the economy while the value of the transaction has a negative impact on real gross domestic product. The study recommends, among others, that the government implement measures to build up investors’ confidence in the capital market by fair transactions, by increasing investment instruments on the market; all the tiers of government should encourage funding their realistic development program through the capital market.

scholarly journals Government Expenditure and Economic Growth Nexus: Evidence from Nigeria

2016 ◽  
Vol 5 (4) ◽  
pp. 56
Author(s):  
Oyediran, Leye Sherifdeen ◽  
Sanni, Ibrahim ◽  
Adedoyin, Lukman ◽  
Oyewole Olabode Michael
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
Least Square ◽  
National Bureau ◽  
Fiscal Discipline ◽  
Secondary Sources ◽  
Economic Development And Growth ◽  
The Government ◽  
The Impact

The need to better the lots of citizens through government expenditure has raised questions on the impact of government expenditure on the economic development and growth of nations. It is against this background that this paper examined the antecedent effect of government spending on the Nigerian economic growth. The general objective of the study is to ascertain the relationship between government expenditure and economic growth in Nigeria; specifically, the study examined: (i) the significance influence of government capital expenditure on economic growth in Nigeria and (ii) the significance influence of government recurrent expenditure on economic growth in Nigeria. The study employed ordinary least square (OLS) multiple regression analysis in estimating the specified model, with the Gross Domestic Product (GDP) as the dependent variable, while Capital Expenditure (CAPEXP) and Recurrent Expenditure (REXP) are the independent variables. Data between 1980 – 2013 were collected from secondary sources through the National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN). Results showed that in Nigeria, there exist a significant relationship between the government expenditure and economic growth. The study therefore recommends instilling fiscal discipline in government expenditures, and putting in place structural mechanisms to act as surveillance on capital spending so as to boost the nation’s human and social capital.

scholarly journals Capital Market Performance as a Panacea for Economic Growth in Nigeria

2019 ◽  
Vol 13 (2) ◽  
pp. 1
Author(s):  
Akpokerere Othuke Emmanuel ◽  
Okoroyibo Eloho Elizabeth
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Stock Exchange ◽  
Market Performance ◽  
Secondary Data ◽  
Least Square ◽  
Ex Post ◽  
Ordinary Least Square Regression ◽  
Market Variables ◽  
The Capital Market

The paper examined capital market performance as a panacea for economic growth in Nigeria from 1986-2016. A number of related literatures have shown that the Nigerian capital market variables studied has satisfactory market performance and has contributed to economic growth. Yet some researchers observed that the capital market has not significantly mobilized and effectively channeled substantial capital to the real sector of the economy. What could have been the reason for the divergences? The study was anchored on the demand following hypothesis. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin and Nigeria Stock Exchange fact-book of various editions. The paper adopted the ex-post facto research design while ordinary least square regression techniques was used to process the data gathered using E-views 9.0 software. The null hypotheses (Ho) were tested at 5% level of significance. The findings of the paper revealed that there is negative and insignificant relationship between capital market and the variables studied. The paper conclude that liquidity of the capital market is pivotal for economic growth in Nigeria while the study recommended that all tiers of government should be encouraged to fund their realistic long term developmental program through the Nigeria capital market.

scholarly journals COVID-19 OUTBREAK AND ROLE OF TOURISM DEVELOPMENT ON ECONOMIC GROWTH IN PAKISTAN

2021 ◽  
Vol 19 ◽  
Author(s):  
Normah Abdul Latip ◽  
Rehmat Karim ◽  
Azizan Marzuki ◽  
Faqeer Muhammad ◽  
Attaullah Shah ◽  
...  
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Unit Root ◽  
Unit Root Test ◽  
Tourism Development ◽  
Significant Decline ◽  
Least Square ◽  
The Government ◽  
Static Nature

The current research aimed to find out the effect of tourism development on economic growth in Pakistan for the period (1995 to 2017) by using Canonical Regression Analysis (CCR) and Dynamic Least Square (DOLS) method. In addition, a unit root test is used to find out the static nature of the variables, and for the robust check, the authors utilize the Fully Modified Least Square (FMOLS) method. The results of the CCR and DOLS shows the key role of tourism development on growth, and FMOLS confirms these findings. In addition, the contribution of financial development is insignificant and positive. However, inflation harms economic growth, which depicts that the government of Pakistan will face severe challenges to achieve the targeted level of growth in future. In addition, an outbreak of Coronavirus Disease (Covid-19) is another challenge that will cause a significant decline in tourism receipts.

Government Expenditure on Infrastructure as a Driver for Economic Growth in Nigeria

2020 ◽  
Vol 5 (2) ◽  
pp. 20-26
Author(s):  
Amadi Kelvin Chijioke ◽  
Alolote Ibim Amadi
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Government Spending ◽  
Government Expenditure ◽  
Secondary Data ◽  
Least Square ◽  
Vector Error Correction ◽  
Inverse Effect ◽  
Augmented Dickey Fuller ◽  
The Government

This study primary examines the effects of government infrastructural expenditure on economic development in Nigeria. Secondary data sourced from reported annual spending on selected infrastructure and annual Gross Domestic Products were statistically analyzed. The data treatments used for the secondary data were unit root and co-integration tests using Augmented Dickey–Fuller and Phillip–Perron model. Weighted least square was also used to test the sample of 37-year annual time series using vector error correction model. The data analysis was done with descriptive statistics. Findings from the study revealed that government spending on transport, communication, education and health infrastructure have significant effects on economic growth; spending on agriculture and natural resources infrastructure recorded a significant inverse effect on economic growth in Nigeria. An element of fiscal illusion was observed in the government spending on agriculture and natural resources indicating that government is not contributing as much as the private sector in spending on agriculture and natural resources infrastructure in Nigeria.

scholarly journals Krisis Global dan Pertumbuhan Ekonomi di Indonesia

2021 ◽  
Vol 10 (1) ◽  
pp. 46-55
Author(s):  
Neli Aida ◽  
Fadeli Yusuf Afif ◽  
Tantri Siwi Peni
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Unit Root Test ◽  
The United States ◽  
Global Crisis ◽  
Correction Model ◽  
The Government ◽  
Short Time ◽  
The Impact

This study aims to analyze the impact of the global crisis that occurred in 2008 on economic growth, the trigger for the crisis, namely an increase in credit accumulation in a large amount and in a short time in the United States (US), this increase led to an increase in bad credit so that it was quite large in the world economy. Economic growth, the global crisis, investment, exports, and labor are variables that will be obtained from the Central Statistics Agency, the Investment Coordinating Board, and others. The result of the unit root test and cointegration shows that the Error Correction Model is the chosen model. The results showed that the global crisis had a significant and negative impact on economic growth in Indonesia, while exports, labor, and investment had a significant and positive impact. Therefore, the government must maintain the balance of the economy to prevent a crisis, as well as the need to encourage investment, exports, and human resources to encourage increased economic growth.  

scholarly journals Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia

2021 ◽  
Author(s):  
Kaiballah Conteh
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Policy Implications ◽  
Causality Test ◽  
Flexible Labor ◽  
Long Run ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Auto Regressive ◽  
The Government

The aim of this research is to look at the relationship between economic growth and unemployment in Liberia from 2001 to 2019. To investigate the association between unemployment and Gross Domestic Product (GDP), the unit root test, the Augmented Dickey-Fuller (ADF) Co-integration test, and the Standard Granger Causality test were used. The Auto Regressive Distribution Lag (ARDL) bounds test is used to decide if the variables have a long run linkage. The ARDL model findings indicate that there is no long-run association between unemployment and economic growth. The findings of this analysis have especially significant policy implications for Liberian economic policymakers. The observational findings revealed a negligible association between unemployment and economic growth in both the long and short term. The Liberian government should redirect its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation should be created, and finally, the government should prioritize industries that promote labor intensive.

scholarly journals PUBLIC SPENDING AND ECONOMIC GROWTH PERFORMANCE: EVIDENCE FROM NIGERIA

2021 ◽  
Vol 9 (7) ◽  
pp. 1-14
Author(s):  
Oluyemi Ayodele Olonite ◽  
Sani U. Gurowa ◽  
Kamaluddeen Funsho Adisa Ibrahim ◽  
John Olorunleke Ajewole
Keyword(s):  
Economic Growth ◽  
Capital Expenditure ◽  
Public Spending ◽  
Unit Root Test ◽  
Secondary Data ◽  
Generalized Least Squares ◽  
Multiple Regression Model ◽  
Augmented Dickey Fuller ◽  
Negative Effect ◽  
The Government

This study analysed the relationship between public spending and economic growth in Nigeria. The study used the secondary data from CBN Statistical Bulletin from 2004 – 2018. The Real Gross Domestic Product formed the dependent variable and the independent variable of interest were the Capital Expenditure on Economic Services, and Expenditure of Transfers. The variables were validated by conducting the unit root test using the Augmented Dickey Fuller (ADF) and Phillips Perron Test (PP), and the correlation coefficient were determined using STATA and the Pearson Product Moment Correlation. A multiple regression model was employed for the study and was analysed using the Generalized Least Squares (GLSs) with the aid of Eviews 11 statistical program. The results of the study indicated that Capital Expenditure on Economic Services has a positive and significant impact on Economic Growth while Expenditure on Transfer has a negative and insignificant impact on Economic Growth. The study recommends that Capital Expenditure on Economic Services should be maintained and increased and Expenditure on Transfer should be made Zero, also, the government should develop the refineries to start mass production in order to null off the negative effect of transfers (subsidy payment on oil import and price equalization).

scholarly journals Impact of Capital Market on Economic Growth in Nigeria

2020 ◽  
Vol 9 (2) ◽  
pp. 49
Author(s):  
Ubesie M. C. ◽  
Nwanekpe C. E. ◽  
Ejilibe C.
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Labour Force ◽  
Least Square Method ◽  
Least Square ◽  
Standard Of Living ◽  
Ordinary Least Square ◽  
Result Show ◽  
The Government ◽  
The Impact

This study on “Impact of Capital Market on Economic Growth in Nigeria” is aimed to access the impact and determinant of capital market on the economic growth in Nigeria within the period of study. It further employed the ordinary least square method (OLS) in analyzing the time series variables obtained for the study. The result of the findings show that all the variables of interest were significant in explaining the behavior of capital market on the growth of Nigeria Economy except Labour force. more so, the result show that the the model employed for the analysis is adequate and best in fitting the variables obtained. Further more, necessary recommendations were made to enable the government come up with a favorable policies in which will make for improvement in the standard of living.

scholarly journals Economic Growth And Unemployment: An Empirical Assessment of Okun’s Law In The Case of Liberia

2021 ◽  
Author(s):  
Kaiballah Conteh
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Policy Implications ◽  
Flexible Labor ◽  
Long Run ◽  
Study Results ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Auto Regressive ◽  
The Government

The purpose of this study is to examine the connection between economic growth and unemployment in Liberia between 2001 and 2019. The unit root test and the Augmented Dickey-Fuller (ADF) Co-integration test were used to examine the relationship between unemployment and GDP. The Auto Regressive Distribution Lag (ARDL) bounds test is used to determine if the variables are linked in the long run. According to the results of the ARDL model, there is no long-run relationship between unemployment and economic growth. This study' results have particularly important policy implications for Liberian economic authorities. In both the long and medium term, the observational results showed no meaningful relationship between unemployment and economic growth. The Liberian government should direct its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation, and finally, the government should prioritize labor intensive industries.

scholarly journals Effects of Capital Market Development on the Economic Growth of Nigeria

2021 ◽  
Vol 7 (2) ◽  
pp. 30-46
Author(s):  
Udo Ginikachi Cynthia ◽  
Nwezeaku Nathaniel Chinedum ◽  
Kanu Success Ikechi
Keyword(s):  
Economic Growth ◽  
Capital Market ◽  
Unit Root Test ◽  
Secondary Data ◽  
Market Development ◽  
Index Number ◽  
Stock Market Development ◽  
Distributed Lag ◽  
Long Run ◽  
The Government

This study examines the effect of capital market development on the economic growth of Nigeria using data on Real Gross Domestic Product as a proxy for economic growth while capital market variables constitute the independent variables. This includes Market Capitalization, All Share Index, Number of Listed Securities and the number of listed companies The study adopted an expost-facto research design which utilized secondary data for the period 1983 -2016. While an Augmented Dickey-Fuller unit root test was used for preliminary analysis; an Autoregressive Distributed Lag (ARDL) was used for the model estimation. .A combination of ARDL bounds test for co-integration, ARDL short and long run error correction models were used for estimation. All the tests helped to confirm the integrity of our models. Findings of the study indicate that, the Number of listed Securities and All Share Index maintained a significant relationship with economic growth in Nigeria both in the short and long runs. Based on the findings of study it was recommended that government should help to remove all impediments to stock market development in the form of tax, legal and regulatory barriers as they act as disincentives to investments in the capital market. Again, government should help to maintain policy consistency in the pursuit of growth in the Nigerian capital market. By so doing, counter developmental policies should not be allowed to crowd out the gains of capital market development and by extension on economic growth in the long run. Lastly the government should find ways and means of boosting the confidence of investors to retain their portfolio investments.

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