Globalization and Economic Growth: Evidence from Nigerian Economy 1980 – 2017

GIS Business ◽  
2019 ◽  
Vol 14 (3) ◽  
pp. 66-79
Author(s):  
Cookey ◽  
Boma Clement ◽  
Okorie Stanley
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Critical Infrastructure ◽  
Unit Root Test ◽  
Secondary Data ◽  
Multiple Regression Model ◽  
Correction Model ◽  
Integration Test ◽  
Political Globalization ◽  
Economic Institute

This study examined the effect of globalization on growth of Nigerian Economy from 1980 to 2017. The used secondary data sourced mainly from the Central Bank of Nigeria Statistical bulletin and the SWISS Economic Institute (KOF). A multiple regression model which has economy growth, proxy by real gross domestic product as the dependent variable and globalization disaggregated into overall globalization, economic globalization, social globalization, and political globalization as the independent variables was estimated using Engle-Granger (1979) Error correction model approach. The unit root test shows that all the variables are integrated of order 1(1), while the co-integration test result revealed that the variables are co-integrated. Estimates from the error correction models show that overall globalization had positive and significant effect on economic growth, while political globalization had positive, but insignificant impact on economic growth. It was therefore recommended that government should create conducive macro-economic environment and invest in critical infrastructure to position the economy for positive globalization effects.

scholarly journals The Relationship between Tax Revenue and Economic Growth in Nepal: A Co-integration Approach

2018 ◽  
Vol 11 (1) ◽  
pp. 28-36
Author(s):  
Gautam Maharjan
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Unit Root Test ◽  
Error Correction Model ◽  
Series Data ◽  
Tax Revenue ◽  
Correction Model ◽  
The Impact ◽  
The Relationship

The main objective of this paper is to examine the relationship between tax revenue and economic growth in Nepal. The 43 years' annual time series data from 1974/75 to 2016/17 of GDP, tax revenue and nontax revenue have been used to test the causal relationship of the variables. A unit root test, Engle-Granger’s co-integration and Error Correction Model have been applied for the data analysis. The variables have been found stationary after first differencing I(1) when Augmented Dickey-Fuller unit root test is employed. From Engel-Granger test, it has been found that the variables are co-integrated. The short-term coefficients are not significant, however error correction term (ECT) is significant and contains a negative sign in the error correction model (ECM). It validates the ECM model. The ECT has shown that the annual speed of adjustment from disequilibrium to equilibrium is 34.3 percent. So far as the relationship is concerned, there is a long run relationship between tax revenue and economic growth in Nepal controlling the non-tax revenue. The impact of tax revenue on economic growth could be a good impetus for the policy maker and planner to increase the collection of revenue for the country.

scholarly journals An Empirical Investigation of Oil Revenue and Economic Growth in Nigeria

2016 ◽  
Vol 12 (25) ◽  
pp. 271 ◽  
Author(s):  
Nweze Paul Nweze ◽  
Greg Ekpung Edame
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Empirical Investigation ◽  
Manufacturing Sector ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Unit Root Test ◽  
Secondary Data ◽  
Oil Revenue ◽  
Error Correction Mechanism

This empirical study examined oil revenue and economic growth in Nigeria between 1981 to 2014. Secondary data on gross domestic product (GDP), used as a proxy for economic growth; oil revenue (OREV), and government expenditure (GEXP) which represented the explanatory variables were sourced mainly from CBN publications. In the course of empirical investigation, various advanced econometric techniques like Augmented Dickey Fuller Unit Root Test, Johansen Cointegration Test and Error Correction Mechanism (ECM) were employed and the result reveals among others: That all the variables ware all stationary at first difference, meaning that the variables were not integrated of the same order justifying cointegration and error correction mechanism test. The cointegration result indicated that there is long run relationship among the variables with three cointegrating equation(s). The result of the error correction mechanism (ECM) test indicates that all the variables except lag of government expenditure exerted significant impact on economic growth in Nigeria. However, all the variables exhibited their expected sign in the shortrun but exhibited negative relationship with economic growth in the longrun except for government expenditure, which has positive relationship with economic growth both in the longrun and shortrun. The study concluded that Government should use the revenue generated from petroleum to invest in other domestic sectors such as Agriculture and manufacturing sector in order to expand the revenue source of the economy and further increase the revenue base of the economy.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI UTANG LUAR NEGERI DI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 482
Author(s):  
Defrizal Saputra ◽  
Hasdi Aimon ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Error Correction ◽  
Foreign Debt ◽  
Secondary Data ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Descriptive Research ◽  
Long Run

This study aims to determine and analyze the factors that influence foreign debt in Indonesia with variables that effect economic growth, inflation, and foreign interest rates. This type of research is associative descriptive research, where the data used is secondary data from 1970 to 2017 obtained from institutions and related institutions, which are analyzed using the Error Correction Model (ECM) method. This study initially used the Ordinary Lest Square (OLS) method to see long-term, and used ECM because it wanted to see short-term at the same time. The findings of this study indicate that economic growth and inflation have a significant effect in the long run, but the interest rates have no significant effect, and in the short term all have a significant effect on foreign debt in Indonesia. Keywords: foreign debt, economic growth, inflation, interest rates and error correction model (ECM)

scholarly journals Banking Competition and Economic Growth: 2006-2015 Case of Rwanda

2020 ◽  
Vol 1 (3) ◽  
pp. 513-522
Author(s):  
Faustin Maniraguha
Keyword(s):  
Economic Growth ◽  
Error Correction ◽  
Unit Root ◽  
Growth And Development ◽  
Unit Root Test ◽  
Cointegration Test ◽  
Banking Competition ◽  
Correction Model ◽  
Economic Growth And Development ◽  
Short Run

It has been argued that a competitive and efficient financial sector is a prerequisite for economic growth and development. The objective of this study therefore was to determine the influence of bank competition on economic growth in Rwanda for the period 2006 - 2015.The study used Error Correction Model after conducting Unit Root Test(ADF) and Cointegration Test(Johansen) so that to check the degree of adjustment in the short run. The results revealed that Credit to GDP is highly significant and this implied that there is a need to set the policy influencing credit distribution in order to influence economic growth. In addition disequilibrium found in the short run is corrected quarterly at 70.32%.

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).

Fiscal Deficit And Economic Growth, Nigeria Experience

2015 ◽  
Vol 3 (11) ◽  
pp. 6-15
Author(s):  
Ogunsakin Sanya ◽  
Lawal N Abiola
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Secondary Data ◽  
Annual Reports ◽  
Fiscal Deficit ◽  
Distributed Lag ◽  
Long Run ◽  
Integration Test

This study examines impact of fiscal deficit on the growth of Nigerian economy using co-integration and error correction. Secondary data were gathered from various sources such as; the Central Bank of Nigeria statistical bulletin, economic and financial review monthly and annual reports and statement of accounts for various years. The time series property of the data employed, are first to be investigated. This is then followed by testing for co-integrated variables. From the unit root test, the results clearly indicate that the variables are integrated of the same order at first difference. Also, from the multivariate co-integration test, within the Auto-Regressive Distributed Lag (ARDL) the results indicate that there are, at most, two co-integrating vectors. This implies that there exists a stable long-run relationship between economic growth and budgeting components. From the study, it was discovered that deficit budget is one of the indicators of macroeconomic instability and significantly discourage human capital accumulation. However, recommendations are made based on the findings among which are that government should set its priorities right, be more committed to budget implementation and to pay more attention to capital expenditure geared towards growth.

scholarly journals PENGARUH E-COMMERCE, INFLASI, DAN NILAI TUKAR TERHADAP PERTUMBUHAN EKONOMI INDONESIA

2020 ◽  
Vol 2 (1) ◽  
pp. 151
Author(s):  
Widya Ayu Lastri ◽  
Ali Anis
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Error Correction ◽  
Secondary Data ◽  
Term Effect ◽  
Short Term ◽  
Correction Model ◽  
Descriptive Research ◽  
Long Term Effect

This Study aims to examine and to analisys the influencing factors on economic growth in Indonesia, which the variables are e-commerce, inflation and exchange rate. This study is associative descriptive research, which using secondary data from 2011Q1-2018Q4 that obtained from relevant institutions and agencies. Analisys using Error Correction Model (ECM) method. This study using Ordinary Lest Square (OLS) method to know the long term effect and ECM to know the short term effect at one blow.The study found that in the long term, e-commerce and exchange rate have a significant effect and inflation have not a significant effect. And in the short term, e-commerce have a positive and significant effect, while inflation and exchange rate have a negative and not significant.

scholarly journals Indirect Tax and Economic Growth in Nigeria: The Case of VAT

2019 ◽  
pp. 61-66
Author(s):  
OBAYORI, Joseph Bidemi ◽  
OMEKWE, Sunday Omiekuma Paul
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Unit Root Test ◽  
Value Added ◽  
Secondary Data ◽  
Value Added Tax ◽  
Long Run ◽  
Integration Test ◽  
The Impact ◽  
Excise Duties

This paper empirically investigated the impact of value added tax (VAT) on economic growth in Nigeria from 1994–2018. This was done against the background that VAT as an indirect tax was introduced by the Federal Government of Nigeria in 1993 to replace sales tax with the sole aim of increasing the revenue base of government and make funds available for developmental purposes. The aim of the study is to examine the effect of value added tax on economic growth in Nigeria and determine the impact of other tax revenues particularly, custom and excise duties on economic growth in Nigeria. Thus, secondary data on GDP, VAT revenues, custom and excise duties were sourced from CBN statistical bulletin. Also, ARDL technique was used to analyze data. The variables were subjected to ADF unit root test prior the ARDL and found to be stationary. The ARDL co-integration test showed that there is a long run association amongst the variables. The ARDL short run result showed that the value of VAT has a positive relationship with economic growth in Nigeria. Also, custom and excise duties revenue positively impacted on economic growth in Nigeria. Hence, it was concluded that Value Added Tax (VAT) as an indirect tax system in Nigeria has direct relationship with economic growth in Nigeria since its inception in 1994. It has contributed to the total revenue of the nation as a result of reduction in tax evasion. Based on the findings, the paper recommended that government should put in place adequate measure to ensure that revenue generated from VAT is effectively utilized to develop and grow the economy in order to better the lives of the citizenry.

scholarly journals DETERMINANT OF INDONESIAN MANUFACTURING OUTPUT

2018 ◽  
Vol 3 (1) ◽  
pp. 61
Author(s):  
Arga Prati Dhina ◽  
Wasiaturrahma Wasiaturrahma
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Error Correction ◽  
Research Method ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Short Term ◽  
Correction Model

The role of manufacture in Indonesia influence the economic growth. This research aims to observe and analyze influencing factors of manufacturing sector output in Indonesia. The research method used Error Correction Model (ECM) at period 2005 in 1stquartal – 2017 in 4thquartal. This research used secondary data from Statistik Ekonomi dan Keuangan Indonesia (SEKI) and Federal Reserves. The results of the study show that in long term estimation lend interest rate and inflation have negative and significant impact, whereas FDI has positive and significant impact towards manufacturing sector output. Otherwise, in short term estimation show that lend interest rate has negative and significant impact, while inflation and FDI have no significant impact towards manufacturing sector output.

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.

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