scholarly journals Impact of Public Capital Expenditure on Inflation Rate in Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 30-39
Author(s):  
Jideofor Nnennaya Joy ◽  
Michah Chukwuemeka Okafor ◽  
Eke Onyekachi Abaa
Keyword(s):  
Unit Root ◽  
Inflation Rate ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Public Capital ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Mixed Order ◽  
Augmented Dickey Fuller ◽  
The Impact

This paper examines the impact of public capital expenditure on inflation rate in Nigeria. The data for the study were sourced from various issues of the Central Bank of Nigeria’s statistical bulletin. The data was subjected to unit root test using Augmented Dickey fuller (ADF) approach to ascertain the time series properties. Descriptive statistics was used to assess the socioeconomic characteristics of the variables. Due to the mixed order of integration witnessed in the unit root, ARDL- Autoregressive Distributed Lag approach was used for cointegration and regression analysis. The result found that Public capital expenditure is negatively and statistically significant (tcal = -2.903) in influencing Inflation Rate in Nigeria. This outcome is highly directional in the sense that prudent and productive spending will always subdue inflation in any economy; therefore, this study recommend that government should increase its investment in production sectors and encourage skilful and willing citizens to participate, since this would reduce the expenses being incurred on business as a result low currency value and raise the profitability of firms.

scholarly journals Impact of Public Capital Expenditure on Economy Growth of Nigeria

2021 ◽  
Vol 2 (4) ◽  
pp. 1-10
Author(s):  
Jideofor Nnennaya Joy ◽  
Michah Chukwuemeka Okafor ◽  
Josephine Adanma Nmesirionye
Keyword(s):  
Economic Development ◽  
Unit Root ◽  
Capital Investment ◽  
Capital Expenditure ◽  
Public Capital ◽  
Productive Capacity ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Capital Spending ◽  
The Government

The research investigates the relationship between governmental capital spending and economic development in Nigeria. Several issues of the Central Bank of Nigeria's statistics bulletin were used in the research, which yielded a large amount of data. The data was submitted to a unit root test, which was performed using the Augmented Dickey fuller (ADF) method, in order to determine its time series characteristics. The variables' socioeconomic characteristics were obtained via the use of descriptive statistics. Because of the varying order of integration seen in the unit root, cointegration and regression analysis were carried out utilizing the ARDL- Autoregressive Distributed Lag method, which is an acronym for Autoregressive Distributed Lag. The results show that public capital investment has a negative and statistically significant (tcal = -2.6996) impact on the Nigerian economy, as assessed by the GDP growth rate, according to the data. The results demonstrate that when capital expenditures in Nigeria get the attention they deserve, they have the potential to contribute to economic development in the country. This research recommends that the government manage capital spending in an appropriate manner in order to enhance the nation's productive capacity and accelerate economic development in light of the results.

scholarly journals Nexus between Agriculture and Unemployment in Nigeria

2019 ◽  
pp. 1-13
Author(s):  
Oluwafemi S. Enilolobo ◽  
Saidi A. Mustapha ◽  
Onyeka P. Ikechukwu
Keyword(s):  
Error Correction ◽  
Granger Causality ◽  
Unit Root ◽  
Unit Root Test ◽  
Model Estimation ◽  
Correction Model ◽  
Agriculture Sector ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Bounds Test

This study examined the impact of agriculture sector growth on unemployment level as well as the direction of causality between agricultural sector output and unemployment level in Nigeria. Secondary annual time series data between 1981 and 2016 were used for the study. Data on unemployment rate, agriculture sector output, public expenditure and industrial output were obtained from the Central Bank of Nigeria’s statistical Bulletin while data on FDI and population growth were obtained from the World Bank World Development Indicators. The data were analyzed using ADF (Augmented Dickey Fuller Test) unit root test, Autoregressive distributed lag Bounds test of cointegration, Autoregressive distributed lag error correction model estimation and Granger causality. The results of ADF unit root test revealed variables were at different orders of integration, the ARDL bounds test revealed cointegration between variables, and the Autoregressive distributed lag error correction model estimation revealed that change in agriculture output in the current period is negative and significant for current unemployment level in Nigeria, while the change in one period lagged agriculture output was positive and significant for current unemployment level in Nigeria. Also the error correction term indicated that about 74.10 percent of the disequilibrium in the system in the previous year would be corrected in the current year. Granger causality test results revealed bi-directional causality between agriculture output and unemployment level in Nigeria. The study recommends that the Nigeria government should using strategic policies targeted at boosting agriculture output such as increasing access to land for peasant rural farmers, investments in agricultural research, and so on, seek to boost agriculture output in order to reduce unemployment in Nigeria. Further, the Nigeria government should ensure that agriculture sector development policies are consistent with the objective of reducing unemployment in Nigeria.

scholarly journals Analysis of the Effects of Climate Change on Maize Production in Mali

2021 ◽  
pp. 42-52
Author(s):  
Abdoulaye Maïga ◽  
Moussa Bathily ◽  
Amadou Bamba ◽  
Issoufou Soumaïla Mouleye ◽  
Mamadi Sissako Nimaga
Keyword(s):  
Climate Change ◽  
Unit Root ◽  
Correction Term ◽  
Unit Root Test ◽  
Negative Effects ◽  
Maize Production ◽  
Distributed Lag ◽  
Adequate Food ◽  
Augmented Dickey Fuller

The objective of this paper is to analyze the effects of climate change on maize production in Mali during the period 1990-2020. The unit root test (augmented Dickey-Fuller) was used to check the order of integration between the variables in the study. The ARDL (autoregressive distributed lag) approach to cointegration limits is applied to assess the association between the study variables with evidence of a long-term relationship. The unit root test estimates confirm that all variables are stationary at the combination of I(0) and I(1). The results show that precipitation and temperature in June and July have a negative and highly significant effect on maize production in both the short and long term analyses. Among other determinants, the area of land devoted to maize crops and GDP per capita have a positive effect on production. The estimated coefficient on the error correction term is also highly also highly significant As Mali's population grows, in the coming decades the country will face food security challenges. Possible initiatives are needed to configure the Malian government to address the negative effects of climate change on agriculture and ensure adequate food for the growing population.

scholarly journals THE IMPACT OF PERSISTENT CYCLES ON ZERO FREQUENCY UNIT ROOT TESTS

2013 ◽  
Vol 29 (6) ◽  
pp. 1289-1313 ◽  
Author(s):  
Tomás del Barrio Castro ◽  
Paulo M.M. Rodrigues ◽  
A.M. Robert Taylor
Keyword(s):  
Unit Root ◽  
Unit Root Test ◽  
American Statistical Association ◽  
Unit Root Tests ◽  
Statistical Association ◽  
Finite Sample ◽  
Finite Sample Properties ◽  
Augmented Dickey Fuller ◽  
Frequency Unit ◽  
The Impact

In this paper we investigate the impact of persistent (nonstationary or near nonstationary) cycles on the asymptotic and finite-sample properties of standard unit root tests. Results are presented for the augmented Dickey–Fuller (ADF) normalized bias and t-ratio-based tests (Dickey and Fuller, 1979, Journal of the American Statistical Association 745, 427–431; Said and Dickey, 1984; Biometrika 71, 599–607). the variance ratio unit root test of Breitung (2002, Journal of Econometrics 108, 343–363), and the M class of unit-root tests introduced by Stock (1999, in Engle and White (eds.), A Festschrift in Honour of Clive W.J. Granger) and Perron and Ng (1996, Review of Economic Studies 63, 435–463). We show that although the ADF statistics remain asymptotically pivotal (provided the test regression is properly augmented) in the presence of persistent cycles, this is not the case for the other statistics considered and show numerically that the size properties of the tests based on these statistics are too unreliable to be used in practice. We also show that the t-ratios associated with lags of the dependent variable of order greater than two in the ADF regression are asymptotically normally distributed. This is an important result as it implies that extant sequential methods (see Hall, 1994, Journal of Business & Economic Statistics 17, 461–470; Ng and Perron, 1995, Journal of the American Statistical Association 90, 268–281) used to determine the order of augmentation in the ADF regression remain valid in the presence of persistent cycles.

scholarly journals Comparative Study of the Impact of Oil Rent on Healthcare in Nigeria and Cameroon: A Three Stage Methodical Approach

2019 ◽  
pp. 58-63
Author(s):  
EWUBARE, Dennis Brown ◽  
OBAYORI, Elizabeth Lizzy
Keyword(s):  
Rural Areas ◽  
Unit Root ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Panel Cointegration ◽  
Cointegration Test ◽  
Panel Unit Root ◽  
Long Run ◽  
Oil Rents ◽  
The Impact

The study comparatively examined the impact of oil rent on healthcare in Nigeria and Cameroon from 1995 to 2015. The objectives of the study are to; study the trend of oil rents and healthcare in Nigeria and Cameroon; examine the relationship between oil rent and healthcare of Nigerians and Cameroonians and determine the impact of mineral rent on the healthcare of Nigeria and Cameroon. To achieve these objectives panel data were collected on health, oil rent and mineral rent and analyzed using the econometric techniques of panel unit root test and panel cointegration test as well as graphical method. The panel unit root and cointegration test showed that all the series are indeed stationary and have long run equilibrium relationship. Comparatively, the graph showed that the rents from oil in Nigeria are lower than that of Cameroon. Also, Cameroon performs better in rents from minerals than Nigeria. Thus, Cameroon capital expenditure on health has steadily increased since 1995 up to 2015 while Nigeria seems not to take healthcare expenditure serious hence the dismal performance in the infant mortality rates. Based on the findings, it is recommended that revenue from oil should be towards inclusive growth, thereby impacting significantly on the healthcare and welfare of the citizens. Thus, there should be investment in primary as well as maternal health in the rural areas for the disadvantaged in society.

scholarly journals THE IMPACT OF EXPORTS ON ECONOMIC GROWTH OF PAKISTAN AND INDIA

2019 ◽  
Vol 2 (02) ◽  
pp. 77-89
Author(s):  
Rasheed Khan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Unit Root ◽  
Unit Root Test ◽  
Direct Foreign Investment ◽  
Ordinary Least Squares ◽  
Policy Makers ◽  
Augmented Dickey Fuller ◽  
The Impact ◽  
Adf Test

The aim of this study is to investigate the impact of exports on economic growth of Pakistan and India for the period of 1990 to 2016. The unit root test namely Augmented Dickey Fuller (ADF) test was used to identify stationarity in the data. The method of Fully Modified Ordinary Least Squares (FMOLS) was employed to estimate the coefficient of the variables. The FMOLS results exhibit that exports is having positive and significant impact on economic growth in both countries. Moreover, the empirical results reveal that Foreign Direct Investment (FDI) inflow and human capital have also positive and significant effect on the economic growth. The findings of this study suggest that policy makers need to make effective policies in order to increase the volume of exports as well as attract direct foreign investment and encourage human capital in order to stimulate economic growth.

Economic Analysis of Capital Expenditure and Infrastructural Development in Nigeria

2018 ◽  
Vol 10 (1-2) ◽  
pp. 52-62 ◽  
Author(s):  
Chukwuemeka Valentine Okolo ◽  
Richardson Kojo Edeme ◽  
Chinanuife Emmanuel
Keyword(s):  
Capital Expenditure ◽  
External Debt ◽  
The Past ◽  
Infrastructural Development ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Oil Revenue ◽  
Long Run ◽  
The Impact ◽  
Positive Effect

Infrastructural development has been the major concern of countries all over the world due to its significant impact in fostering growth. In Nigeria, it has been observed that the level of infrastructure posed serious threat to attaining sustained growth. This study therefore examines the impact of capital expenditure on infrastructural development in Nigeria, utilising time series from 1970 to 2017. The study adopted autoregressive distributed lag (ARDL) model due to the possibility of the past value of the dependent variable explaining its present value, and found that capital expenditure, construction expenditure and non-oil revenue have the potency of accentuating infrastructural development in the long-run but such is being hampered by external debt. The positive effect of recurrent expenditure on infrastructural development is a pointer that bulk of the expenditure in Nigeria over the years is recurrent in nature. These suggest the need to boost non-oil revenue, reduce recurrent and channel external debt into productive infrastructural development.

scholarly journals Domestic Investment and Economic Growth Nexus in Nigeria: A Post Recession View

2019 ◽  
pp. 1-12
Author(s):  
Onochie, Stanley Nwabuisi ◽  
Ozegbe, Azuka Elvis ◽  
Nwani, Stanley Emife
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Analytical Framework ◽  
Series Data ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Integration Test ◽  
The Impact

This study investigates the impact of domestic investment on economic growth in Nigeria, using annual secondary time series data spanning 37 years from 1981 to 2017 extracted from the CBN statistical bulletin. Real GDP was used to proxy economic growth, while the key explanatory variable is domestic investment with other control variables as capital expenditure, oil export earnings, exchange rate and inflation rate. The study embarked on pre-estimation test such as unit root test and the bounds co-integration test which informed our methodological choice of Autoregressive Distributed Lag (ARDL). The short run and long run estimates show that domestic investment has positive but insignificant impact on economic growth in Nigeria. This finding departs from those of previous writers due to the improved analytical framework employed in this study. On the basis of our findings, the study recommends a compulsory individual and national savings to boost the level of domestic investment in the country so as to achieve the much desired economic growth and development.

scholarly journals Determinants of behavior of inflation rate in Nigeria

2019 ◽  
Vol 16 (2) ◽  
pp. 25-36
Author(s):  
Lawrence Uchenna Okoye ◽  
Felicia O. Olokoyo ◽  
Felix N. Ezeji ◽  
Johnson I. Okoh ◽  
Grace O. Evbuomwan
Keyword(s):  
Inflation Rate ◽  
Estimation Method ◽  
Empirical Support ◽  
Economic Activities ◽  
Institutional Reforms ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Major Factors ◽  
Developed Nations ◽  
The Impact

Inflation is an important macroeconomic issue that has continued to dominate discussions at major economic fora over time. Governments all over the world are concerned about its rising trend because of its pervasive effect on economic performance. One intriguing fact about inflation is that it is both the cause and effect of certain policy actions of government. Several studies have been conducted on the effect of inflation on economic activities in developing and developed nations, but studies on its cause, particularly in developing nations, are scant. This paper aims at identifying major factors that cause inflation in Nigeria. Based on the autoregressive distributed lag (ARDL) estimation method, the study shows empirical support for significant impact of external debt, exchange rate, fiscal deficits, money supply and economic growth on inflation. It further shows previous period or lagged inflation rate as a significant determinant of current inflation rate. However, the study produced no evidence of significant longrun impact of interest rate on the rate of inflation in Nigeria. The study recommends economic reforms that target foreign exchange inflow through increased export trade, as well as a paradigm shift away from deficit budgeting. There is also a need for infrastructural and institutional reforms to eliminate or, at least, minimize the impact of structural inequity on output prices.

scholarly journals Government Expenditure and Inflation in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. p29
Author(s):  
Chioma Chidinma George-Anokwuru ◽  
Bosco Itoro Ekpenyong
Keyword(s):  
Money Supply ◽  
Inflation Rate ◽  
Government Expenditure ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Lag Model ◽  
The Impact

The impact of government spending on Nigeria’s inflation levels between 1999 and 2019 was x-rayed in this paper. The data for the study were sourced from CBN statistical bulletin and Autoregressive Distributed Lag model was used as the main analytical tool. A long-run relationship among this study’s variables was realized, using the ARDL Bounds test. The result also revealed a positive but insignificant relationship between government expenditure and inflation rate in the short-run. Moreover, in the long-run, government expenditure has negative and is statistically significant inflation rate. Money supply has a negative and is statistically insignificant with inflation rate in the short-run. In the long-run, money supply has a positive and significant relationship with inflation rate. Gross domestic product was negatively related to inflation rate in both short-run and long-run. Moreover, exchange rate affected inflation rate negatively and significantly in the short-run and positively and significantly in the long-run. The increasing demands of the population affected inflation rate positively and significantly in both short-run and long-run. Investment was positively related to inflation rate but not significant in the short-run but the relationship was negative and significant in the long-run. The study therefore recommended among others that government should exercise discretion in spending in order to check inflation rate. This can be done by channeling spending on productive activities that will cushion the effect of inflation rate rather than exacerbate it.

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