scholarly journals Capital Flows and Economic Growth: What Roles Does Trade Liberialisation Play?

2021 ◽  
Vol 65 (1) ◽  
pp. 26-44
Author(s):  
Soliu Adegboyega ◽  
◽  
Temidayo Akinbobola ◽  
Felix Ajayi ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Public Capital ◽  
Capital Inflows ◽  
Private Capital ◽  
Development Indicators ◽  
Secondary Sources ◽  
Distributed Lag ◽  
Interactive Relationship ◽  
Foreign Capital Inflows ◽  
The Government

This paper explores by re-examining to what extent trade liberalisation has contributed to the capital inflows (both the private capital inflows and public capital inflow) on economic growth; and their interactive relationship in Nigeria between 1985 and 2018. Time series for each of the variables were collected from secondary sources on yearly basis, extracted from World Development Indicators (WDI) and the variables were measured as percentage of GDP, while Autoregressive Distributed Lag (ARDL) technique is used to show the extent to which the variables were co-integrated and established that both private capital inflows and public capital inflows with the helps of trade liberalization inhibited economic growth in Nigeria. The study further revealed that the coefficient of error correction was negative and highly significant, as well as establishing long-term cointegration. Also, our study affirms partial existence of Bhagwati's hypothesis. Hence, the government needs to restructure and reengineer most of its trade policies, in order to significantly mpact various forms of foreign capital inflows, and subsequently enhance economic growth by creating an enabling economic environment to facilitate adequate inflows of capital inflows.

scholarly journals Capital inflows, exchange rate and agricultural output in Nigeria

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Fredrick Ikpesu ◽  
Abraham Emmanuel Okpe
Keyword(s):  
Exchange Rate ◽  
Foreign Capital ◽  
Public Capital ◽  
Capital Inflow ◽  
Capital Inflows ◽  
Private Capital ◽  
Agricultural Output ◽  
Long Run ◽  
The Government ◽  
Exchange Rate Depreciation

AbstractThe study applied the autoregressive distributed lag (ARDL) technique in investigating the effect of capital inflows and exchange rate on agricultural output in Nigeria between the periods 1981 and 2016. The technique was selected because the variables are integrated at both 1(1) and 1(0) and the sample size is considerably small. Variables used in the study are agricultural output (AO), private capital inflow (PRCI), public capital inflow (PUBCI), investment (INV), labor (L) and real effective exchange rate. Findings from the empirical research revealed that the variables are cointegrated. The research outcome also indicates that in the short run and long run, private capital inflow and public capital inflow positively affect the country agricultural output. The study also revealed that exchange rate depreciation would cause agricultural output to decline in the short and long run. Based on the research findings, it is recommended that the government should create an enabling and conducive environment to attract more inflows of foreign capital into the country to boost the agricultural output. Also, monetary authority should ensure the stability of the country’s exchange rate (Naira) since exchange rate depreciation affects agricultural output negatively. Furthermore, there is the need for the harmonization of foreign capital inflow policy and monetary policy by the government, taking into consideration the optimal level of capital inflow that will not have a detrimental effect on exchange rate so as to ensure sustainable growth in agricultural output.

scholarly journals Economic growth effect of private capital inflows: a structural VAR approach for Nigeria

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Friday Osemenshan Anetor
Keyword(s):  
Economic Growth ◽  
Forecast Error ◽  
Research Result ◽  
Structural Var ◽  
Capital Inflows ◽  
Growth Effect ◽  
Private Capital ◽  
Portfolio Investment ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effect of shocks in the various components of private capital inflows on economic growth in Nigeria using quarterly data in the period 1986Q1–2016Q4. Design/methodology/approach The study employs the impulse response function and the forecast error variance decomposition of the structural vector autoregression (SVAR) model. Findings The research result shows that shocks in foreign direct investment (FDI) inflows and portfolio investment inflows have a positive and significant impact on economic growth in Nigeria. In addition, FDIs accounted for significant variation in the growth of the Nigerian economy followed by portfolio investments, while personal remittances exerted the least variation in growth. Practical implications The government should promote a favorable macroeconomic environment for existing and potential foreign investors to ensure the continued inflows of FDI and portfolio investment. Originality/value The novelty of this study lies in disaggregating private capital inflows and analyzing the effect of the shock of each component on the growth of the Nigerian economy using SVAR.

Foreign Capital and Economic Growth

1988 ◽  
Vol 23 (3) ◽  
pp. 302-310
Author(s):  
Raj Aggarwal
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Global Change ◽  
Foreign Capital ◽  
Development Aid ◽  
Capital Inflows ◽  
Private Capital ◽  
Competitive Markets ◽  
Poor Countries ◽  
Foreign Capital Inflows

In the current environment of significant global change, how can declining levels of development aid and private capital inflows be best used to promote economic growth in the developing countries? This question is addressed here and traditional analysis of this topic is complemented by taking a perspective that focuses on the limitations of how development aid and foreign capital inflows are usually allocated. It is suggested here that poor countries can benefit from a greater use of competitive markets to allocate development aid and private capital inflows.

Impact of Capital Inflows on Manufacturing Exports and Economic Growth: An Empirical Evidence from Nigeria

2020 ◽  
Vol 12 (1) ◽  
pp. 1
Author(s):  
Abiodun Sunday Olayiwola ◽  
Kehinde Elizabeth Joseph
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Capital Inflows ◽  
Annual Data ◽  
Economic Policies ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Export ◽  
The Government

A lot of studies have examined the relationship between capital inflows and economic growth in Nigeria; Most of these studies examined either oil export, non-oil export or total exports, without specific emphasis on manufacturing export; given that manufacturing export is fundamental to economic growth. In this case, we examined the dynamic impact of capital inflows on manufacturing exports and economic growth in Nigeria between 1981 and 2017 using annual data. Data collected were analyzed using Autoregressive Distributed Lag (ARDL) econometric techniques and the results revealed that capital inflows have significant and positive impact on economic growth (t= 4.42884, p< 0.005) both in the short and long run; and positive but statistically insignificant impact on manufacturing exports (t= 0.73, p> 0.05). Therefore, the study concluded that capital inflows have significant impact on economic growth but no impact on the manufacturing exports in Nigeria; and we recommend that the government and monetary authorities’ in Nigeria should formulate economic policies that will promote manufacturing exports through adequate and efficient infrastructural facilities that would encourage the needed capital inflows to the manufacturing sector and increase the production of goods for local consumption and export.

scholarly journals Capital Inflows, Financial Development and Growth in Ecowas Countries: A New Empirical Insight

2021 ◽  
Author(s):  
Anthony Orji ◽  
Jonathan E. Ogbuabor ◽  
Chiamaka F. Okolomike ◽  
Onyinye I. Anthony-Orji
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Labour Force ◽  
Trade Openness ◽  
Capital Inflows ◽  
Data Series ◽  
Financial Deepening ◽  
Foreign Capital Inflows ◽  
The Government ◽  
The Impact

Abstract This paper empirically investigated the impact of foreign capital inflows and financial development on economic growth in ECOWAS countries. The study made use of quarterly data series from 2000 to 2017 for the analysis. Adopting the panel fixed-effect regression, the empirical results showed that Foreign Direct Investment (FDI), net domestic credit (CRE), Gross Capital Formation (GCF), and Foreign Aid (AID) increase economic growth in ECOWAS region while labour force (LF) and Trade Openness (OPEN) revealed otherwise. The study therefore recommended that concerned policy makers in the ECOWAS region should pursue financial deepening and strengthen policies that will enhance the operations of the financial system. Also member countries should create a conducive socio-political and economic environment for foreign investors to invest in the economies. This can be done by reducing the corruption prevalent in the system, ethnic unrest, introduction of tax holidays, stability of policies introduced by the government, among others. In this era of Covid-19 many have lost their jobs and the economy of ECOWAS needs to be revitalized by following these economic prescriptions, among others.JEL Classification: F21; F36; F38; F43; G15; O16

Tax revenue and economic growth in developing country: an autoregressive distribution lags approach

2020 ◽  
Vol 7 (54) ◽  
pp. 205-217
Author(s):  
Mnaku Honest Maganya
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Testing Procedure ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Causality Test ◽  
Significance Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Government

AbstractTanzania, like most other developing countries, faces numerous economic challenges in striving to achieve sustainable economic growth and development through taxation. In the literature, the debate on how effective taxes are as a tool for promoting economic growth and economic development remains inconclusive, as various research have reported mixed effects of tax on economic growth. This article investigates the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. Various preliminary tests were conducted including stationary tests as well as the pair-wise Granger causality test. According to the results obtained, domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further.

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 Export Diversification and Economic Growth in Nigeria

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Philip Ifeakachukwu Nwosa ◽  
Fasina Oluwadamilola Tosin ◽  
Ogbuagu Matthew Ikechukwu
Keyword(s):  
Economic Growth ◽  
Poor Performance ◽  
Export Diversification ◽  
Economic Policies ◽  
Oil Market ◽  
Distributed Lag ◽  
The Poor ◽  
Auto Regressive ◽  
Oil Sector ◽  
The Government

The issue of export diversification has been contentious in Nigeria due to the country’s unstable growth pattern which is majorly associated with instability in the international oil market and the poor performance of other sectors of the economy. Therefore, this study examines the link between export diversification and economic growth in Nigeria from 1962 to 2016. The study utilizes the Auto-regressive Distributed Lag (ARDL) technique. The result of this study shows that export diversification has a positive but insignificant influence on economic growth in Nigeria. The above result implies that the oil sector still dominates the Nigerian economy while the diversification drive of the government has not been significant in other sectors of the economy. Thus, the study recommends the need for conscious economic policies that would promote the diversification of the entire non-oil sector of the economy. The study concludes that export diversification is an insignificant determinant of economic growth in Nigeria.

scholarly journals The impact of education tax and investment in human capital on economic growth in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 77-86
Author(s):  
Abubakar Aminu ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Tertiary Education ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
The Government ◽  
Capital Development ◽  
The Impact

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth

Economic growth, Industrialization, Trade, Electricity production and Carbon dioxide emissions: Evidence from Ghana

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Kingsley Appiah ◽  
Rhoda Appah ◽  
Oware Kofi Mintah ◽  
Benjamin Yeboah
Keyword(s):  
Economic Growth ◽  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Time Series Data ◽  
Electricity Production ◽  
Series Data ◽  
Data Set ◽  
Development Indicators ◽  
Explanatory Variables ◽  
Distributed Lag

Abstract: The study scrutinized correlation between electricity production, trade, economic growth, industrialization and carbon dioxide emissions in Ghana. Our study disaggregated trade into export and import to spell out distinctive and individual variable contribution to emissions in Ghana. In an attempt to investigate, the study used time-series data set of World Development Indicators from 1971 to 2014. By means of Autoregressive Distributed Lag (ARDL) cointegrating technique, study established that variables are co-integrated and have long-run equilibrium relationship. Results of long-term effect of explanatory variables on carbon dioxide emissions indicated that 1% each increase of economic growth and industrialization, will cause an increase of emissions by 16.9% and 79% individually whiles each increase of 1% of electricity production, trade exports, trade imports, will cause a decrease in carbon dioxide emissions by 80.3%, 27.7% and 4.1% correspondingly. In the pursuit of carbon emissions' mitigation and achievement of Sustainable Development Goal (SDG) 13, Ghana need to increase electricity production and trade exports.   

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