scholarly journals MONEY MARKET INSTRUMENTS AND ECONOMIC GROWTH OF NIGERIA

2021 ◽  
Vol 6 (2) ◽  
Author(s):  
Cyril Ogugua Obi
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Legal Framework ◽  
Money Market ◽  
Domestic Product ◽  
Financial Deepening ◽  
Macroeconomic Policies ◽  
Treasury Bills ◽  
Holistic View ◽  
Johansen Cointegration Test

This study investigated the relationship between the money market instruments and economic growth of Nigeria using time series analysis from 1981-2019. The relevant variables for which data were sourced include: Real gross domestic product, Financial deepening indicator [ratio of money supply (M2) to gross domestic product – (M2/GDP)(%)], value of treasury bills outstanding, value of Certificate of deposit outstanding, value of commercial paper outstanding, and value of banker acceptance outstanding. The data extracted from the CBN statistical bulletin, vol. 30, 2019. The Augmented Dickey Fuller (ADF), Johansen cointegration test and Error Correction Mechanism (ECM) were adopted. The research findings found that, there is significant relationship between money market instruments and economic growth in Nigeria. Furthermore, there is insignificant relationship between money market instruments and the development of the Nigerian financial system. The study recommends amongst others, the need for Government to create appropriate macroeconomic policies, legal framework and consolidate and improve on reforms with a holistic view to developing and deepening the market so as to promote productive activities, investments, and ultimately economic growth. JEL: E41; E50; E51 <p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0798/a.php" alt="Hit counter" /></p>

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
pp. 60-73
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals Current Laws Governing Franchise Agreement in Jordan

2016 ◽  
Vol 12 (4) ◽  
pp. 45
Author(s):  
Mohammad Saud Khasawneh ◽  
Nurli Yaacob ◽  
Rohana Abdul Rahman
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Legal System ◽  
Legal Framework ◽  
Legal Aspects ◽  
Domestic Product ◽  
License Agreement ◽  
Legal Challenges ◽  
Opening Up ◽  
Laws And Regulations

<p>Currently there are more than 150 local and international franchise businesses operating in Jordan. Franchise business in Jordan has been a crucial investment market contributing to the country’s Gross Domestic Product (GDP) and developing its economic growth and trade. Nevertheless, legal challenges to the investors which have existed may hinder them from opening up a franchise business in Jordan. One of these challenges is the lack of specific legal framework regulating franchise business. Jordanian legal system does not have specific legislation to regulate the franchise agreement (which is known as the “license agreement” in Jordan) between a franchisor and a franchisee. The lack of specific legislation may deter or at least slow down the progress of foreign and local investors in setting up franchise businesses in Jordan, as they could not reasonably anticipate the relevant laws and regulatory enforcements relating to franchise. Therefore, this paper examines the current laws and regulations governing franchise business in Jordan. The paper concludes that existing laws affecting franchise in Jordan fail to address comprehensively the legal aspects of franchise. Thus, there is a dire need for specific legal framework to govern franchise business in Jordan.</p>

Money Market Instruments and Nigeria Inflation Rate: A Time Series Study

2018 ◽  
Vol 2 (2) ◽  
pp. 1-13
Author(s):  
Philip Umasom
Keyword(s):  
Gross Domestic Product ◽  
Central Bank ◽  
Inflation Rate ◽  
Money Market ◽  
Least Square ◽  
Domestic Product ◽  
Causality Test ◽  
Policy Objective ◽  
Treasury Bills ◽  
Augmented Dickey Fuller

This study empirically examined the effectiveness of money market instruments on Nigerian inflation rate. The objective is to investigate the existing relationship between money market instruments and Nigerian inflation rate, data was sourced from Central Bank of Nigeria statistical bulletin. Multivariate model were formulated having Inflation Rate (INFR) as the function of Percentage of Treasury Bills to Gross Domestic Product (TB/GDP), Percentage of Stabilization Securities to Gross Domestic Product (STS/GDP), Percentage of Treasury Certificate to Gross Domestic Product (TC/GDP), Percentage of Eligible Development Stock to Gross Domestic Product (EDS/GDP), Percentage of Central Bank of Nigeria Short Term Fund to Gross Domestic Product (CBNSF/GDP) and Percentage of Call Money Scheme to Gross Domestic Product (CMS/GDP). The Ordinary Least Square (OLS) properties of co integration, Augmented Dickey Fuller Unit Root, Granger Causality Test and Vector Error Correction Model (VECM) were employed to determine the relationship between the money market instruments and Nigerian inflation rate. Findings revealed that money market instruments are statistically significant in explaining variation in Nigerian inflation rate. We therefore recommend that the money market should well be structured, properly managed and its operational efficiency enhanced to achieve the monetary policy objective of price stability.

scholarly journals The Impact of Financial Deepening on the Economy of Nigeria (1981-2018)

2020 ◽  
pp. 12-21
Author(s):  
Udeme Okon Efanga ◽  
Chinelo Okanya Ogochukwu ◽  
Georgina Obinne Ugwuanyi
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Positive Impact ◽  
Domestic Product ◽  
Financial Deepening ◽  
International Capital ◽  
Integration Test ◽  
The Many ◽  
The Impact

This study was carried out to investigate the impact of financial deepening on the Nigerian economy between 1981 and 2018. Data employed for this study was elicited from Central Bank of Nigeria Statistical Bulletin of 2018. This study employed real gross domestic product as proxy for economic growth in Nigeria (regress and), while ratio of money supply to gross domestic product, ratio of private sector credit to gross domestic product and ratio of market capitalization to gross domestic product were adopted as regressors. The co-integration test and Fully Modified Least Squares (FMOLS) Model were utilized to analyze data. Inferential results generated there from indicated that financial deepening had positive impact on the Nigerian economy within the period under review. To boost economic growth, we recommend at this time that monetary authorities implement monetary policies to increase money. In the same vein, Nigerian commercial banks should be encouraged to improve upon credit facilities made available to the private sector. Recognizing the positive impact of international capital, this study also recommends that Nigerian policy makers ease some of the many restrictions that currently limit entry of international capital. This singular act would most definitely lead to more companies being listed on the exchange. The result would be the attainment of even more depth to Nigeria’s economy.

Financial Deepening, Financial Intermediation and Nigerian Economic Growth: Time Variant Analysis

2019 ◽  
Vol 1 (1) ◽  
pp. 60-73
Author(s):  
Uzokwe Grace Onyinyechi
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Gross Domestic Product ◽  
Private Sector ◽  
Money Supply ◽  
Domestic Product ◽  
Financial Deepening ◽  
Causality Test ◽  
Real Gross Domestic Product ◽  
Long Run

This study examines financial deepening, financial intermediation and Nigerian economic growth. The main purpose is to examine the relationship between financial deepening and Nigerian economic growth while the specific objectives are to examine the impact of interest rate, capital market development, rational savings, credit to private sector and broad money supply on the growth of Nigerian. Secondary data of the variables were sourced from the publications of Central Bank of Nigeria (CBN) from 1981-2017. Nigerian Real Gross Domestic Product (RGDP) was used as dependent variable while Broad money supply (M2), Credit to Private Sector (CPS), National Savings (NS), Capital Market Capitalization (CAMP) and Interest Rate (INTR) was used as independent variables. Multiple regressions with E-view statistical package were used as data analysis techniques. Cointegration test, Augmented Dickey Fuller Unit Root Test, Granger causality test was used to determine the relationship between the variable in the long-run and short-run. R2, F – statistics and β Coefficients were used to determine the extent to which the independent variable affects the dependent variable. It was found from the regression result that Broad Money Supply, credit to private sector have position effect on the growth of Nigerian Real Gross Domestic Product while National Savings, Capitalization and Interest Rate on Nigeria Real Gross Domestic Product. The co-integration test revealed presence of long-run relationship among the variables, the stationary test indicated stationarity of the variables at level. The Granger Causality Test found bi – variant relationship from the dependent to the independent and from the independent to the dependent variables. The regression summary found 99.0% explained variation, 560.5031, F – statistics and probability of 0.00000. From the above, the study concludes that financial deepening has significant relationships with Nigerian economic growth. We recommend that government and the financial sector operators should make policies that will further deepen the functions of the financial system to enhance Nigerian economic growth.

scholarly journals Financial Deepening and Economic Growth in Nigeria: A Johannsen and Error Correction Model Techniques

2021 ◽  
Vol 12 (2) ◽  
pp. 263
Author(s):  
Victoria Okafor ◽  
Ebenezer Bowale ◽  
Ademola Onabote ◽  
Adedeji Afolab ◽  
Jeremiah Ejemeyovwi
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Error Correction ◽  
Structural Adjustment ◽  
Time Series Data ◽  
Domestic Product ◽  
Series Data ◽  
Financial Deepening ◽  
Stock Market Development ◽  
Market Capitalisation

The desire to ascertain the kind of relationship between finance and growth is not new among scholars. This study attempted to give a better understanding of the type of relationship by analysing post-SAP (Structural Adjustment Programme) time-series data since the notable financial reforms began with SAP in Nigeria. The study employed the Johannsen Cointegration, error correction and granger causality as estimation techniques to determine the nexus between financial deepening and economic growth. The variables contained in the model include the ratio of credit to the private sector to gross domestic product (CPS) which proxy bank-based financial deepening, the proportion of market capitalisation to gross domestic product (MCAP) which proxy for stock market development. The result of the analysis revealed that the Nigerian economic growth is influenced by financial deepening positively and significantly, especially the bank-based financial depth.

Trends of Private Consumption in the Restructuring of China’s Economy

2015 ◽  
Vol 07 (04) ◽  
pp. 52-64
Author(s):  
Chien-Hsun CHEN
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Private Consumption ◽  
Decisive Role ◽  
Domestic Product ◽  
Domestic Consumption ◽  
Labour Income ◽  
Rapid Economic Growth ◽  
Labour Share ◽  
China’S Economy

The benefits deriving from rapid economic growth have chiefly accrued to capital returns. Consequently, the decline in the share of Chinese gross domestic product (GDP) accounted for by labour income has been most pronounced. To sustain growth, China will have to ensure robust consumption. Increasing the labour share in GDP and hence promoting domestic consumption will play a decisive role in rebalancing China’s economy.

The impacts of income inequality on the gross domestic product under direct taxation: evidence from emerging market economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmet Eren Yıldırım ◽  
Mete Dibo
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Income Inequality ◽  
Gross Domestic Product ◽  
Emerging Market ◽  
Domestic Product ◽  
Emerging Market Economies ◽  
Content Type ◽  
Market Economies ◽  
Direct Taxation

PurposeThis study analyzes the impacts of income inequality after direct taxation on the gross domestic product as a fiscal policy tool in the development process.Design/methodology/approachThe model of the study is based on Munielo-Gallo and Roca-Sagales (2013), which examined the fiscal policy, income inequality and economic growth simultaneously. The study uses two models to analyze the relationship between income inequality and gross domestic production under direct taxation by employing autoregressive distributed lag (ARDL) model for selected emerging market economies.FindingEmpirical results reveal a negative long-run relationship between variables in some countries in line with the literature, despite a positive relationship in others. Moreover, the results exhibit the negative impact of income inequality after direct taxation on the gross domestic product decreases.Originality/valueResults of the study highlight the importance of direct taxation on income inequality concerning the reflects on economic growth. It suggests that when the income distribution is fairer, it may positively affect the gross domestic product. The study provides a new perspective to the related literature by investigating the role of income inequality under direct taxation for gross domestic product.

scholarly journals KAPSARC Oil Market Outlook

2021 ◽  
Author(s):  
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
International Monetary Fund ◽  
Domestic Product ◽  
Real Gross Domestic Product ◽  
The Third ◽  
Oil Market ◽  
Market Outlook ◽  
Oil Demand ◽  
The International Monetary Fund

Total global oil demand is expected to increase year-on-year (YoY) by 4.2 million barrels per day (MMb/d) in 2021 and further grow by 3.5 MMb/d in 2022, returning to 2019 levels by the third quarter (Q3) 2022. The International Monetary Fund (IMF) predicts economic growth of around 5.4% in 2021, compared with a decline in real gross domestic product (GDP) in 2020 of -4.4%. However, KOMO estimates a forecast more in line with the OECD’s outlook for growth (4.2%), which presumes that GDP levels will only reach 2019 levels by the end of 2021.

scholarly journals Are Business Regulations Improving Economic Growth? Case Study between ASEAN and European Union

2021 ◽  
Vol 9 (1) ◽  
pp. 44-53
Author(s):  
Karuniana Dianta Arfiando Sebayang ◽  
Belinda Febrina
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Gross Domestic Product ◽  
Quantitative Research ◽  
Domestic Product ◽  
The European Union ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
Business Regulations ◽  
The Impact

Economic activities require a transparent regulatory and policy environment that is accessible to all levels of society. This study aims to explain the impact of ease of doing business on economic growth in both ASEAN and the European Union since doing business indicators applied globally. Gross Domestic Product is used as a proxy variable for economic growth as Gross Domestic Product is an indicator to measure economic growth. This study uses a descriptive quantitative research model and uses multiple regressions to determine the effect of ease of doing business on economic growth in ASEAN and the European Union by comparing the result of each ASEAN and European Union. In this study it was found that in ASEAN, there are four indicators of doing business have significant impact to economic growth, while in the European Union five indicators have significant impact to economic growth.  

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