scholarly journals Impact of Capital Market on Domestic Resource Mobilization for Economic Development in Nigeria (2000-2015)

2016 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Agu, B. O. ◽  
Nwankwo, S. N. P. ◽  
Onwuka, I. O.
Keyword(s):  
Economic Development ◽  
Capital Market ◽  
Percent Level ◽  
Resource Mobilization ◽  
Least Square ◽  
Series Data ◽  
Market Capitalization ◽  
Integration Test ◽  
The Impact ◽  
Domestic Resource

<p><em>The</em><em> </em><em>study investigated the impact of Nigerian capital market on domestic resource mobilization for economic development,</em><em> </em><em>using time series data from 2000 to 2015. The study employed secondary data obtained from the Central Bank of Nigeria Statistical Bulletin, the Nigerian Stock Exchange Fact Book and Securities and Exchange Commission database. To evaluate the impact of the independent variables on the dependent, the Ordinary Least Square (OLS) method of estimation was employed. Augmented Dickey Fuller (ADF)</em><em> </em><em>test was used to identify the order of integration. Economic growth was proxied by Gross Domestic Product (GDP) while the capital market variables considered include: Market Capitalization (MCAP), Total New Issues (TNI) and Value of Transactions (VLT).</em><em> </em><em>Applying Johansen and Juselius co-integration test, the result showed that there was at most one co-integrating equation in the model, implying that there is a long run relationship between the variables in the model. The causality test results suggest bidirectional causation between the GDP and the Value of Transactions (VLT) and to the GDP but not vice-versa. Using two-tailed test, the F-statistics is significant at 5 percent level of significance. Furthermore, there was no evidence of reverse causation from GDP to market capitalization and there was no evidence of independence causation between the GDP and Total New Issues (TNI).</em><em> </em><em>The study showed that the major problem with domestic resource mobilization in Nigeria have been that not enough savings are being generated to facilitate the required investment. Also, the type of savings available does not easily make financial intermediation possible. The Nigerian stock market has been constrained by policies that tend to make the exchange look like a mechanism by which government raise loan finance rather than an instrument for mobilizing industrial finance. It is recommended therefore that the regulatory authority should appraise and modify the restrictive policies that constrained resource mobilization capacity of the Nigerian capital market.</em></p>

scholarly journals Impact of Macro Specific Factor and Bank Specific Factor on Bank Liquidity using FMOLS Approach

2019 ◽  
Vol 3 (3) ◽  
pp. 168-178 ◽  
Author(s):  
Hamid Mahmood ◽  
Samia Khalid ◽  
Abdul Waheed ◽  
Muhammad Arif
Keyword(s):  
Monetary Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Percent Level ◽  
Least Square ◽  
Series Data ◽  
Specific Factor ◽  
Clear Understanding ◽  
Specific Factors ◽  
The Impact

By applying the fully modified ordinary least square (FMOLS), this study examines the impact of bank-specific factor and macro-specific factors on bank liquidity, for the period of 2000 to 2017. The bank specific factors include bank crises, bank size, total deposit, and profitability. While it considers a macro-specific factors GDP, inflation, monetary policy and unemployment. Findings reveal that based on time series data, we suggest that bank-specific and macro-specific factor significantly effect on bank liquidity. Empirical results reported that at 5 percent level of significance total deposit, GDP, bank size and unemployment have a negative impact on liquidity of the bank. While monetary policy, bank crisis and profitability have a positive impact on liquidity. Inflation has an insignificant relation with liquidity. The study reported new facts for increase more clear understanding of liquidity in a developing country like Pakistan.

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.

scholarly journals Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria

2021 ◽  
Vol 04 (08) ◽  
Author(s):  
ZAAGHA, Alexander Sulaiman ◽  
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Capita Income ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Least Square ◽  
Series Data ◽  
Per Capita Income ◽  
Integration Test ◽  
Per Capita

This study examined the effect of sectorial microcredit allocation on Nigeria economic development. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from 1992-2019. Nigeria per capita income was proxied for dependent variables while microcredit to agricultural sector, mining and querying, manufacturing sector, real estate and construction and transport and communication were proxies for independent variables. The study employed descriptive statistics and multiple regression models to estimate the relationship that exists between sectorial microcredit allocation and economic development. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The study found that 59 percent variation on Nigeria per capita income can be traced to variation on microcredit allocation to the various sectors of the economy. microcredit to transport and communication have positive and no significant effect, microcredit to real estate and construction have negative but no significant effect, microcredit to manufacturing sector have negative and significant, microcredit to mining and querying have positive and significant effect while microcredit to agricultural sector have positive and significant effect on Nigeria per capita income. From the findings, the researcher concludes that microcredit allocation have significant effect on Nigeria economic development. It recommends that for re-introduction of the abolished compulsory sectorial lending operation and sectorial reforms to attract microcredit. Microfinance banks should be encouraged to increase their branches so as to reach out and provide loans to more clients in order to achieve greater investment purposes. Government should further encourage the activities of micro finance banks by creating enabling environment so that they can further support the growth of business enterprises in Nigeria.

scholarly journals Impact Assessment of Agriculture and Manufacturing Sectors on economic Growth in Nigeria.

2021 ◽  
Vol 04 (10) ◽  
Author(s):  
Atayi Abraham Vincent ◽  
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Percent Level ◽  
Value Added ◽  
Least Square ◽  
Coefficient Of Determination ◽  
Positive Sign ◽  
Series Data ◽  
Agricultural Output ◽  
The Impact

This study tried to investigate the impact of agriculture and manufacturing on economic growth using time series data from (1987-2019). To analyze the link between the variables, the researchers utilized the ADF to test for stationarity, the Ordinary Least Square Method, the Error Correction Model, and the Granger Causality Test. The result shows that, the coefficient of agricultural output has a positive sign, indicating a favorable association. The AGRQ coefficient is (0.045142), implying that a 5% change in AGRQ will result in a 5% change in Manufacturing Value Added. At the 0.05 percent level, the finding is statistically significant, with a probability of (0.0000). The coefficient of determination R-Squared (R2) is 0.817974, indicating that variations in the explanatory variables account for nearly 82 percent of the variation in Manufacturing Value Added. The ECM's coefficient (-1) is (0.619202). The coefficient indicates that the short run adjustment annually offsets 62% of the system's disequilibrium in order to restore long-run equilibrium. This means that the system will reach equilibrium at a 62 percent rate the following year. At the 5% level of significance, Granger causality demonstrates that there is no causal link between Manufacturing Value Added and Real Gross Domestic Product. However, manufacturing value-added and agricultural output have a one-way relationship. The study recommends that government must urgently expand the Nigerian agricultural sector by allocating more financing to the industry and ensuring that the funds are used wisely and to further support increased industrial productivity and expansion, the government should work to strengthen its incentives to the manufacturing sector.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

Does Tax Increment Financing Pass the “But-for” Test in Missouri?

2019 ◽  
Vol 33 (3) ◽  
pp. 187-202
Author(s):  
Ahmed Rachid El-Khattabi ◽  
T. William Lester
Keyword(s):  
Economic Development ◽  
Kansas City ◽  
Time Series Data ◽  
Local Level ◽  
Conclusive Evidence ◽  
Series Data ◽  
Tax Increment Financing ◽  
Data Set ◽  
Development Indicators ◽  
The Impact

The use of tax increment financing (TIF) remains a popular, yet highly controversial, tool among policy makers in their efforts to promote economic development. This study conducts a comprehensive assessment of the effectiveness of Missouri’s TIF program, specifically in Kansas City and St. Louis, in creating economic opportunities. We build a time-series data set starting 1990 through 2012 of detailed employment levels, establishment counts, and sales at the census block-group level to run a set of difference-in-differences with matching estimates for the impact of TIF at the local level. Although we analyze the impact of TIF on a wide set of indicators and across various industry sectors, we find no conclusive evidence that the TIF program in either city has a causal impact on key economic development indicators.

scholarly journals The Innovation of Government Bonds in the Growth of an Emergent Capital Market

2021 ◽  
Vol 7 (1) ◽  
pp. 103
Author(s):  
Cordelia Onyinyechi Omodero ◽  
Philip Olasupo Alege
Keyword(s):  
Capital Market ◽  
Research Work ◽  
Government Bonds ◽  
Market Capitalization ◽  
Market Growth ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact ◽  
Total Market ◽  
The Capital Market

The growth of an emerging capital market is necessary and requires all available resources and inputs from various sources to realize this objective. Several debates on government bonds’ contribution to Nigeria’s capital market developmental growth have ensued but have not triggered comprehensive studies in this area. The present research work seeks to close the breach by probing the impact of government bonds on developing the capital market in Nigeria from 2003–2019. We employ total market capitalization as the response variable to proxy the capital market, while various government bonds serve as the independent variables. The inflation rate moderates the predictor components. The research uses multiple regression technique to assess the explanatory variables’ impact on the total market capitalization. At the same time, diagnostic tests help guarantee the normality of the regression model’s data distribution and appropriateness. The findings reveal that the Federal Government of Nigeria’s (FGN) bond is statistically significant and positive in influencing Nigeria’s capital market growth. The other predictor variables are not found significant in this study. The study suggests that the Government should improve on the government bonds’ coupon, while still upholding the none default norm in paying interest and refunding principal to investors when due.

scholarly journals The Impact of Macroeconomic Variables on Sectoral Indices in Indonesia

ETIKONOMI ◽  
2017 ◽  
Vol 16 (1) ◽  
pp. 71-80 ◽  
Author(s):  
Bambang Sutrisno
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Inflation Rate ◽  
Emerging Market ◽  
Estimation Method ◽  
Least Square ◽  
Series Data ◽  
Macroeconomic Variables ◽  
The Interest Rate ◽  
The Impact

This study aims to examine the effect of macroeconomic variables on sectoral indices in the Indonesian Stock Exchange. The difference in sensitiveness among sectors is an interesting issue to investigate this relationship in an emerging market, such as Indonesia. This study employs ordinary least square (OLS) as an estimation method with monthly time-series data from January 2005 to December 2014. The results document that the interest rate, inflation rate, and exchange rate simultaneously have a significant effect on sectoral indices in Indonesia. The interest rate partially shows a significant negative influence on all sectors except basic industry and chemical, finance, infrastructure, utilities, and transportation, and miscellaneous industry sectors. The inflation rate partially has no significant effect on all sectors. The exchange rate partially has a significant negative impact on all industries.DOI: 10.15408/etk.v16i1.4323

scholarly journals Impact of Domestic Public Debt on Economic Growth - An Empirical Study in the Indian Context

2016 ◽  
Vol 6 (4) ◽  
pp. 101-116
Author(s):  
Srinivasa Rao Gangadharan ◽  
Lakshmi Padmakumari
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Positive Impact ◽  
Least Square ◽  
Distributed Lag ◽  
Long Run ◽  
Domestic Debt ◽  
Integration Test ◽  
Ordinary Least Square Regression ◽  
The Impact

This study is an empirical investigation to assess the impact of domestic debt on India’s Economic growth during the period 1980 – 2014. We use data on Domestic Debt, Net Fiscal Deficit, Exports, Savings, Real Gross Domestic Product, Population and Terms of Trade. This study adopts the ARDL Co-Integration and Granger Causality techniques to investigate the relation between the key variables. The study also employs various post estimation tests to validate the fitness and stability of the models based on Gauss Markov assumptions, after employing the ordinary least square regression on various models. We find that debt negatively impacts economic growth while savings has a positive impact. The Auto Regressive Distributed Lag (ARDL) technique used to test the robustness suggests existence of co-integration among the variables. However, none of the long run co-efficient is significant. The granger causality and co-integration test results support the traditional view that debt negatively impacts economic growth.

scholarly journals Impact of Capital Flight on Tax Revenue in Nigeria: A Co-integration Approach

2020 ◽  
Vol 11 (5) ◽  
pp. 141
Author(s):  
Damilola Felix Eluyela ◽  
Inemesit Bassey ◽  
Olufemi Adebayo Oladipo ◽  
Adekunle Emmanuel Adegboyegun ◽  
Abimbola Ademola ◽  
...  
Keyword(s):  
Secondary Data ◽  
Least Square ◽  
Capital Flight ◽  
Tax Revenue ◽  
National Bureau ◽  
Tax System ◽  
Positive Direction ◽  
Integration Test ◽  
Inland Revenue ◽  
The Impact

This study presents an empirical analysis of the impact of capital flight on tax revenue in Nigeria. We made use of secondary data collected from the Central Bank of Nigeria Statistical Bulletin of various issues, Federal Inland Revenue Services and National Bureau of Statistics. The empirical measurement covers the sample period between 1980 and 2015. An Ordinary Least Square, Augmented Dickey-Fuller unit root test, Error Correction Mechanism and Co-integration test was adopted in the study. The results revealed that the Gross Domestic Product has a significant effect in the positive direction, while capital flight and inflation rate have a significant effect in the negative direction. The study recommended that the Federal Inland Revenue System, the department saddled with the responsibility of tax collection, should review the tax system and policies with the aim of plugging loopholes in the existing tax system thereby preventing organizations from evading and avoiding taxes.

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