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 Dynamic Impact of Trade Openness on the Economic Growth in Nigeria

2019 ◽  
Vol 8 (5C) ◽  
pp. 609-616
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Unit Root Test ◽  
Secondary Data ◽  
Dynamic Impact ◽  
Long Run ◽  
Short Run ◽  
Private And Public ◽  
The Government ◽  
The Masses

In theory, it was conforming to the accepted standard the open economies grow faster than the closed economies, and respectable economic development level could be achieved. This paper investigates the dynamic impact of trade openness on the economic growth in Nigerian economy between 1980 - 2016 empirically. Secondary data were sourced, from the 2016 Central Bank of Nigeria Statistical Bulletin’. The tests of diagnostic conducted are: cointegration test, unit root test and error correction model. The analysis result revealed the trade openness was found to have negatively impacted on the economic growth in both the short run and long run. Based on study findings, it is recommended that since the imports of the country are more than its export; the government needs to have the present efforts to sustain the diversification of the economy to achieve economic growth led by exports. Furthermore, the collaborative effort of government with private sectors should encourage the export substitute in the nation to discourage importation and promote export of primary commodities especially the ones that have absolute advantages to the nation. Lastly, the study also recommended that the government of the country should sustain the policy of Treasury Single Account (T.S.A) so as that the loopholes will be blocked in the private and public sectors of the nation, and also to make sure there is equity in the utilization of the revenue generated internally for the masses to benefit.

scholarly journals Do Erratic Rainfalls Hamper Grain Production? Analysis of Supply Response of Rice to Price and Non-Price Factors

Agronomy ◽  
2021 ◽  
Vol 11 (8) ◽  
pp. 1463
Author(s):  
Ghulam Mustafa ◽  
Azhar Abbas ◽  
Bader Alhafi Alotaibi ◽  
Fahd O. Aldosri
Keyword(s):  
Unit Root Test ◽  
Rice Production ◽  
Vector Error Correction ◽  
Supply Response ◽  
Target Time ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
The Impact

Increasing rice production has become one of the ultimate goals for South Asian countries. The yield and area under rice production are also facing threats due to the consequences of climate change such as erratic rainfall and seasonal variation. Thus, the main aim of this work was to find out the supply response of rice in Malaysia in relation to both price and non-price factors. To achieve this target, time series analysis was conducted on data from 1970 to 2014 using cointegration, unit root test, and the vector error correction model. The results showed that the planted area and rainfall have a significant effect on rice production; however, the magnitude of the impact of rainfall is less conspicuous for off-season (season 2) rice as compared to main-season rice (season 1). The speed of adjustment from short-run to long-run for season-1 rice production is almost two-and-a-half years (five production seasons), while for season-2 production, it is only about one-and-a-half year (three production seasons). Consequently, the study findings imply the supply of water to be enhanced through better water infrastructure for both seasons. Moreover, the area under season 2 is continuously declining to the point where the government has to make sure that farmers are able to cultivate the same area for rice production by providing uninterrupted supply of critical inputs, particularly water, seed and fertilizers.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals AGGREGATED FINANCIAL CONTRIBUTIONS OF SOME ACTIVITY SECTORS ON NIGERIA’S ECONOMIC GROWTH USING ARDL MODEL

2020 ◽  
pp. 13-20
Author(s):  
Amaefula C. G ◽  
Umezurike C. M
Keyword(s):  
Economic Growth ◽  
Unit Root Test ◽  
Industrial Sector ◽  
Data Sets ◽  
Ardl Model ◽  
Services Sector ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Financial Contributions

The paper examines the aggregated financial contributions of industrial and services sector output on the economic growth of Nigeria using ARDL model. The data sets on gross domestic product (GDP) and industrial and services sector output (measured in billions of naira) cover the period of 1981 to 2019. The ADF unit root test was used to test the order of integration of the variables under study. Applying Generalized Linear Model (Newton-Raphson) method of estimation, the results showed that both the industrial sector (IND) and services sector (SERV) contributed positively to GDP growth both at the short-run and long-run, significant under 5% level and the system is adjusting towards long-run equilibrium at the speed of approximately 102%. Therefore, the government should put more effort in industrial and services sector reforms so as to make these sectors more proactive at improving economic growth in Nigeria. KEYWORDS: Industry, services sector, economic growth, ARDL

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.

scholarly journals Investment and Economic Indicators in Malaysia

2018 ◽  
Vol 3 (2) ◽  
pp. 23
Author(s):  
Masturah Ma’in ◽  
Norfaiezah Nordin ◽  
Izza Hazira Zailan ◽  
Saliza Sulaiman ◽  
Zuraidah Ismail
Keyword(s):  
Trade Openness ◽  
Unit Root Test ◽  
Secondary Data ◽  
Population Based ◽  
Economic Indicators ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Integration Test ◽  
Short Run

This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to determine the short-run and long run effect among variables. The cointegrating test indicates that investment is significantly related to the trade openness, GDP and population. Based on the VECM results, the findings show that a long run relationship exists between the trade openness and investment in Malaysia. Hence, these reveal that it is important for the Malaysian government to enhance the economic policy in liberalizing foreign trade in order to encourage more investments.

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.

Enhancing Economic Growth and Government Revenue Generation in Nigeria: The Role of Diaspora Remittances

2021 ◽  
pp. 003464462110256
Author(s):  
Dal Didia ◽  
Suleiman Tahir
Keyword(s):  
Economic Growth ◽  
Parameter Estimates ◽  
Gross Domestic Product Growth ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
The Empirical Analysis

Even though remittances constitute the second-largest source of foreign exchange for Nigeria, with a $24 billion inflow in 2018, its impact on economic growth remains unclear. This study, therefore, examined the short-run and long-run impact of remittances on the economic growth of Nigeria using the vector error correction model. Utilizing World Bank data covering 1990–2018, the empirical analysis revealed that remittances hurt economic growth in the short run while having no impact on economic growth in the long run. Our parameter estimates indicate that a 1% increase in remittances would result in a 0.9% decrease in the gross domestic product growth rate in the short run. One policy implication of this study is that Nigeria needs to devise policies and interventions that minimize the emigration of skilled professionals rather than depending on remittances that do not offset the losses to the economy due to brain drain.

scholarly journals ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

scholarly journals The Effects of Human Capital by Gender on Economic Growth

2021 ◽  
Vol 12 (1) ◽  
pp. 113
Author(s):  
Mohd Shahidan Shaari ◽  
Razinda Tasnim Abdul Rahim ◽  
Nor Hidayah Harun ◽  
Faiz Masnan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Labour Force ◽  
Labour Force Participation ◽  
Participation Rates ◽  
Long Run ◽  
Job Opportunities ◽  
Short Run ◽  
The Government ◽  
Male Labour

The issue of human capital by gender has been sparsely discussed in previous literature especially male labour force. The contribution of both genders to economic growth has intensified every year. Therefore, this study aims to investigate the effects of human capital by gender on economic growth in Malaysia. Data ranging from 1982 to 2018 were analysed by using the ARDL approach. The results show that higher male labour force participation rates can boost economic growth in the short run and long run in Malaysia. Higher female labour force participation rates, on the other hand, can reduce economic growth in the short run and long run in Malaysia. Therefore, the government should encourage more male labour to participate in the labour market by giving incentives. More job opportunities should be created for both genders.

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