Do Petroleum Product Pump Prices Influence Economic Growth in Nigeria? An Empirical Analysis

2021 ◽  
Vol 8 (1) ◽  
pp. 25-35
Author(s):  
Jude Chukwunyere Iwuoha ◽  
Florence Chigozirim Awoke ◽  
Chiwuike Ubah
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Secondary Data ◽  
Price Adjustment ◽  
National Bureau ◽  
Causality Test ◽  
Fuel Pump ◽  
Price Adjustments ◽  
Johansen Cointegration Test ◽  
The Impact

This study examined the impact of fuel pump price adjustment and the causal relationship between fuel pump price adjustments and economic growth in Nigeria using secondary data extracted from the Central Bank of Nigeria annual report and National Bureau of Statistics publications spanning from 1980 - 2019. Descriptive statistics, unit root test, Johansen cointegration test, VECM and Granger causality test were employed to analyse the data. The result showed that a 1% increase in the prices of PMS and AGO increased economic growth by 0.014%, 0.038% and 0.018% respectively while AGO is reduced by 0.002%. Also the prices of PMS, AGO and DPK does not granger cause economic growth in Nigeria within the period under this study meaning that any macroeconomic policy that affects economic growth should be pursued independent of fuel pump prices as any policy aimed at influencing economic growth through pump price adjustments seems to be ineffective.

scholarly journals Impact of Money Market Instruments on Economic Growth in Nigeria

2021 ◽  
Vol 04 (04) ◽  
Author(s):  
Ishola, Oluwatosin Pelumi ◽  
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Secondary Data ◽  
Analysis Data ◽  
Money Market ◽  
National Bureau ◽  
Causality Test ◽  
Treasury Bill ◽  
Long Run ◽  
The Impact

Money market instruments play a crucial role in the growth and development of the Nigerian economy. Still, it is not yet vibrant and constrained by the absence of sub-markets and availability of adequate credit instruments required for the smooth operations of the market. The study examine the impact of money market instruments (Treasury bill, Treasury certificates, Certificate of Deposits, Banker’s Acceptances, Development Stock and Commercial Papers) on Economic growth based on secondary data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and National Bureau of Statistics (NBS) publications for 30 years. The study employed statistical techniques such as ADF, Unit Root Test, OLS, multiple-regression and Granger Causality Test to analysis data collected for the study covering the period 1990-2020. The study observed that Bank acceptance and Commercial paper granger cause Gross Domestic Product (GDP). Treasury bill, Treasury certificate and commercial papers have a positive relationship with GDP, but its effect is insignificant in the long run. But banker’s acceptance and certificate of deposits has a positive and significant effect on GDP in the long run. In contrast, development stock has no significant effect on GDP in the short and the long run with no granger causal relationship with GDP. The study therefore recommends that Nigerian money market should be reformed in line with the current globalization trend and internationalization of the money market to allow a flow of foreign investment into the economy and also increase the number of tradable instruments in the market.

Contribution of StockMarket Towards Economic Growth: An Empirical Study on Bangladesh Economy

2017 ◽  
Vol 13 (4) ◽  
pp. 238 ◽  
Author(s):  
Sonia Rezina ◽  
Nusrat Jahan ◽  
Mohitul Ameen Ahmed Mustafi
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Market Performance ◽  
Unit Root Test ◽  
Causality Test ◽  
Stock Market Development ◽  
Stock Market Performance ◽  
Augmented Dickey Fuller ◽  
Johansen Cointegration Test ◽  
The Impact

The economic growth of a country is influenced by many different factors. This study aims to investigate the causal relationship between stock market development and economic growth in Bangladesh as well as the impact of stock market performance upon the economic growth of Bangladesh. The stock market performance has been measured by market capitalization ratio, number of listed companies, total value traded and turnover ratio; and the economic growth was represented by real gross domestic product. The periods taken for study were from year 1994 to year 2015.The effect of the stock market reform will also be addressed to explain the relationship. The study has been conducted using Augmented Dickey- Fuller Unit Root Test, Johansen Cointegration Test and the Granger Causality Test. The findings of the research should help the policy makers and regulators to look after their interest in the financial sector of the country.

scholarly journals Exchange rate and economic growth nexus: An impact analysis of the Nigerian economy

2020 ◽  
Vol 2 (4) ◽  
pp. 58-67
Author(s):  
Lawali Bello Zoramawa ◽  
Machief Paul Ezekiel ◽  
Aliyu Tukur Kiru
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Impact Analysis ◽  
Unit Root Test ◽  
Secondary Data ◽  
Economic Openness ◽  
Johansen Cointegration Test ◽  
The Government ◽  
Level Of Significance ◽  
The Impact

This study examines the impact of the exchange rate, as an important determinant of economic growth in Nigeria between 1980 and 2019. Secondary data was used and sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin 2016. The econometric techniques used in the analysis were: Unit Root Test, Johansen Cointegration Test, and Error Correction Model (ECM). The result revealed that exchange has a positive and statistically significant impact on economic growth at a 5% level of significance. But the result further revealed that economic openness was found to have impacted negatively on economic growth. Based on these findings it was recommended that the government through its monetary authority such as (CBN) should redesign the existing monetary policies to maintain a stable exchange rate. Lastly, since the economic openness hurts economic growth, it is therefore suggested that the government should sustain its current efforts in diversifying the economy in the country and disregard the notion that openness generates economic growth in the country.

scholarly journals Effect of Foreign Aids on Economic Growth in Nigeria

2020 ◽  
pp. 194-204
Author(s):  
Isiaka Najeem Ayodeji ◽  
Makinde Wasiu Abiodun
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Unit Root Test ◽  
Secondary Data ◽  
Least Square ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This study investigated the impact of foreign aids on economic growth in Nigeria using time series data spanned from 1990 to 2017. The research considered the secondary data that were gathered from CBN statistical bulletin 2017 and World Bank Data Indictors. Ordinary Least Square techniques was adopted in the study and used Augmented Dickey-Fuller Unit Root Test, co integration test, granger causality test, ECM to estimates data employed. The findings revealed that all the variables employed were stationary at first difference and integrated at the same order1(I), the co-integration test shows that variables are co-integrated at one co-integrating equation which means that there is a long run relationship. The Error Correction Model established that the error that caused disequilibrium in the short run is being corrected in the long-run at a speed of adjustment at 6%. The findings revealed real gross domestic product responds inversely to changes in official development assistance and foreign direct investment. Based on these findings the study concluded that foreign aids have a significant impact on economic growth in Nigeria. Different diagnostic tests are applied in order to confirm the major assumption of multiple regression analysis like multicollinearity, heteroskedasticity and autocorrelation. Therefore, the study recommends among others that government needs to formulate strong and effective education and healthcare policies to facilitate and attract investment in the sectors and improve their efficiency in the long-run that will influence productivity.

Impact of non-oil sectors on GDP/capita in selected African countries: evidence from panel analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Oluyemi Theophilus Adeosun ◽  
Isaac Idris Gbadamosi
Keyword(s):  
Economic Growth ◽  
Panel Data Analysis ◽  
Secondary Data ◽  
African Countries ◽  
Causality Test ◽  
Content Type ◽  
Development Indicators ◽  
Agriculture Industry ◽  
Integration Test ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact or contribution of non-oil sectors on economic growth (GDP/capita) of some selected African countries using panel data analysis.Design/methodology/approachThe paper focused on secondary data for the period 1991–2019 for macro parameters, including agriculture, industry, export and service, and GDP/capita received from World Development Indicators (WDI). Panel unit root tests like Levin, Lin and Chu test and Im, Pesaran and Shin test, Johansen co-integration test, Granger causality test and an error correction model were also applied to the data for analysis.FindingsThe study reveals no causality from agriculture to economic growth, which implies most of the African countries (used in this study) have neglected agriculture as a source of economic growth. The industry independent variable was of no effect on these countries’ economic growth, whereas the findings reveal that industry has causality on economic growth. Economic growth has no causality on the industry, which means the industry is not contributing to economic growth. The study also shows no causality from export and service to economic growth, but a causality runs from economic growth to export and service.Originality/valueThe paper examines the contribution of the non-oil sectors to economic growth in selected African countries.

scholarly journals Does Monetary Policy Induce Economic Growth? An Empirical Evaluation of the Nigerian Economy

2019 ◽  
Vol 2 (4) ◽  
pp. 331
Author(s):  
Anthony Ilegbinosa Imoisi
Keyword(s):  
Economic Growth ◽  
Empirical Evaluation ◽  
Unit Root Test ◽  
Secondary Data ◽  
National Bureau ◽  
Monetary Policies ◽  
Vector Error Correction ◽  
Long Run ◽  
Short Run ◽  
The Government

Monetary and Fiscal policies are instruments which the government of any nation can employ to effectively achieve the desired growth of their respective economies. This study investigates the extent to which monetary policies can promote economic growth in Nigeria from 1980-2017. Secondary data were used from the Statistical Bulletin of the apex bank in Nigeria (CBN) and National Bureau of Statistics. Unit root test, Johansen co-integration and the vector error correction model (VECM) were employed in analyzing the data collected for this study. The result showed that approximately 62% of GDP is explained by variables in the model while 38% is accounted for and explained by other variables not included in the model but are captured by the error term. In addition, monetary policies did not have a significant impact on Nigeria’s economic growth in the short run, but significantly affected the country’s growth in the long run.

scholarly journals MORTGAGE FINANCING AND HOUSING DEVELOPMENT IN NIGERIA

2017 ◽  
Vol 5 (5) ◽  
pp. 182-206 ◽  
Author(s):  
Chris O. Udoka ◽  
Mary Kpataene
Keyword(s):  
Unit Root Test ◽  
Housing Development ◽  
Mortgage Loan ◽  
National Bureau ◽  
Dynamic Interactions ◽  
Causality Test ◽  
Savings And Loans ◽  
Long Run ◽  
Negative Effect ◽  
The Impact

This study examined mortgage financing and housing development in Nigeria. The main focus of this research was to ascertain the impact of mortgage loan in housing development in Nigeria. To achieve this objective, data were extracted from CBN statistical bulletin and National Bureau of Statistics from 1990 to 2014. Three hypotheses were formulated and tested using econometric models such as Augmented Dickey-Fuller unit root test, the co-integration tests revealed the existence of a long-run relationship among the variables. The Error Correction Model established causal links and dynamic interactions between variables by granger causality test. The result of the findings showed a significant relationship between mortgage financing and housing development in Nigeria. Variables such as mortgage loan and interest rate had positive and significant impact on housing development while cost of building had a negative effect on housing development in Nigeria. Further findings revealed that mortgage bank deposit had positive effect on mortgage investment while inflation had a negative effect on mortgage investment. The study recommended that mortgage institution in Nigeria should develop strategies to mobilize more deposits and explore new sources of fund such as funds from the capital market via housing bonds, savings and loans from co-operative societies. Government should create an enabling environment for private housing sector in housing development in Nigeria by providing infrastructure and enhancing soundness and competitiveness of mortgage institutions in Nigeria.

scholarly journals The Impact of Transportation Infrastructure on Economic Growth: Empirical Evidence from Saudi Arabia

2019 ◽  
pp. 1-13
Author(s):  
Ghadda M. Awad Yousif
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Granger Causality ◽  
Secondary Data ◽  
Information Criteria ◽  
Transportation Infrastructure ◽  
Transport Infrastructure ◽  
Transport Sector ◽  
Causality Test ◽  
The Impact

The transport sector is an important factor of economic activity, where it contributes directly to economic activities and employment. The road has a large indirect impact on all the other sectors and activities in the economy. The study aims to investigate the causality relations between road land and economic growth in Saudi Arabia. The study is based on secondary data gained from Saudi Arabia Monetary Agency and World Bank over the period of1988 to2017. The Granger causality test was used to investigate the relationship between the variables with Akiake Lag Length Selection Information Criteria, while Vector Autoregtression (VAR) model was used in order to find the causality. The result reveals unidirectional causality form real GDP to road; however, there is no evidence to support that transportation infrastructure is the cause of economic growth. Granger causality from GDP to investment in infrastructure indicates that reinvestment in infrastructure is caused by economic growth and not vice versa. Economic growth drove pressures on existing transport infrastructure and required additional investment. The finding is in line with the commonly accepted notion advocating that economic growth or development provide necessary financial and technical support for transportation infrastructure investment and improvement.

scholarly journals External Debt and Economic Growth in Nigeria

2019 ◽  
pp. 1-6
Author(s):  
OBAYORI, Joseph Bidemi ◽  
KROKEYI, Wisdom Selekekeme ◽  
KAKAIN, Stephen
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
External Debt ◽  
Unit Root Test ◽  
Secondary Data ◽  
Debt Management ◽  
Stationarity Test ◽  
Kpss Unit Root Test ◽  
The Impact

External credits have been received from various sources including bilateral and multilateral arrangements but the country’s debt is a source of worry since the projects for which these loans were contracted cannot finance the credit facilities. This paper focused on the impact of external debt on economic growth in Nigeria within the period of 1980 to 2016. Thus, secondary data on gross domestic product and external debt were sourced from CBN statistical bulletin and debt management office fact book. The econometric method of Generalized Method of Moments(GMM) test was used. Priori the GMM test is the Kwiatkowski, Phillips, Schemidt and Shin, (KPSS) unit root test to ascertain the stationarity of the variables. Based on the empirical results; the KPSS stationarity test for each of the series showed that all the variables were stationary at order one as their respective LM statistics was less than the critical value at 5%. The GMM test shows that external debt and economic growth has positive and significant relationship with R2 of 54 percent. Therefore, to achieve long-term solution to the problem of external debts burden, government should stimulate domestic production to liberate the Nigerian economy from the shackles of wants and excessive dependence on external economics, which build up debt. Also, government should avoid unnecessary and unproductive borrowing that will serve as a leakage to the economy. This to a large extent will enhance the growth of the Nigerian economy.

scholarly journals An Investigation into the Impact of International Trade in the Growth of Nigeria’s Economy

2015 ◽  
Vol 61 ◽  
pp. 116-125
Author(s):  
O. Owolabi-Merus ◽  
O.K. Odediran ◽  
U.E. Inuk
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Least Square ◽  
Causality Test ◽  
Mutual Correlation ◽  
Agricultural Produce ◽  
Long Run ◽  
Export Channels ◽  
Johansen Cointegration Test ◽  
The Impact

International trade has become an inevitable activity in today’s world. A country such as Nigeria generates a substantial portion of its revenue through the exportation of oil and agricultural produce. Likewise, through importation the country is able to satisfy the domestic needs for mechanised and technological products which it lacks the capacity and technical know-how to produce. It is based on this premise that this study conducts an investigation into the impact that international trade (through import and export channels) has on Nigeria’s economy. Through the Johansen Cointegration test on data from 1971 to 2012, this study finds a long run relationship existing between international trade and economic growth in Nigeria. The Ordinary Least Square results suggest that export is positively associated with economic growth while imports connotes otherwise. The Granger causality test finds a unidirectional causation running from GDP to Import. However, the test failed to find a mutual correlation between Export and economic growth. This study therefore suggests that export promotion strategies should be put in place in order to encourage local farmers and producers to increase production which in turn will stimulate exports and enhance economic prosperity in Nigeria.

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