A BOUND TEST ANALYSIS OF THE EFFECTS OF GLOBAL ECONOMIC SHOCKS ON NIGERIAN ECONOMY: The Role of Fiscal and Monetary Policies (1960-2011)

2012 ◽  
Vol 02 (12) ◽  
pp. 58-68
Author(s):  
Saibu M.O ◽  
Apanisile O.T

This study examines the effectiveness of both fiscal and monetary policies in mitigating external shocks on Nigerian economy. In addition, it determines which of the macroeconomic policy was more effective in mitigating the possible adverse effects of external shocks; The study uses annual data from 1960 to 2011 and data are sourced from Statistical Bulletin of CBN. Also, Mundel-Flemming theoretical framework is adopted to model the interaction between domestic and international macroeconomic policy variables. The time series properties of the variables are examined before the Autoregressive Distributed Lag (ARDL) analytical technique is adopted to estimate the model. Beta coefficient is also generated to determine the effectiveness of each of the policies. The result showed that external shocks had hindered the effectiveness of domestic policy overtime. The result also shows that monetary policy is more effective than the fiscal policy but a coordination of both fiscal and monetary would give a better result.

2018 ◽  
Vol 37 (2) ◽  
Author(s):  
Adenuga Fabian Adekoya ◽  
Nor Azam Abdul-Razak

This study examines the link between unemployment and violence by controlling for income and security expenditure as an antidote to reduce violence in Nigeria. Violence claims many lives and properties in the country, which further increased the demand for public security as tax on the nation’s resources. Also, the increased unemployment in Nigeria, deserving urgent attention to be reduced, as literature has pointed out, causes idleness, deception, frustration and anger. The idea of criminal motivation and strain as an inducement to violence are supported by evidence. Considering the nature of the variables in this study, we tested for endogeneity by using annual data set from 1980 to 2015 before proceeding to test for the long-run and short-run relationship. The Bound Test used to test the cointegration while the Autoregressive Distributed Lag Model (ARDL) approach was used to conduct endogeneity test. ARDL Instrumental Variable is also employed to determine long-run and short-run estimates. The results showed that unemployment causes violence while income as a variable to economic growth reduces violence at the 1% level of significance. Similarly, the deterrence variable of security expenditure adversely affects violence at the 10% level of significance. Therefore, this study suggests policy to promote economic growth as the means of income-employment generation among the youth and the unemployed. Youth programs should be provided especially among the unemployed by granting credit facilities to finance their own projects and further strengthen the deterrence institutions. RESUMEN Este estudio examina el vínculo entre el desempleo y la violencia mediante el control de los ingresos y el gasto de seguridad, como un antídoto para reducir la violencia en Nigeria. La violencia se cobra muchas vidas y propiedades en el país, lo que aumenta aún más la demanda de seguridad pública, traducida como un impuesto a los recursos de la nación. Además, el aumento del desempleo en Nigeria, la cual merece una atención urgente que se reduzca ya que, la literatura señala, provoca ociosidad, engaño, frustración e ira. La idea de la motivación y la tensión delictiva como un incentivo a la violencia está respaldada por la evidencia. Teniendo en cuenta la naturaleza de las variables en este estudio, probamos la endogeneidad mediante el uso de datos anuales de 1980 a 2015, antes de proceder a la prueba de la relación de largo y corto plazo. El Bound Test se usó para probar la cointegración, mientras que el enfoque del Modelo de retardo distribuido autorregresivo (ARDL), se usó para realizar pruebas de endogeneidad. La variable instrumental de ARDL también se emplea para determinar estimaciones a largo y corto plazo. Los resultados mostraron que el desempleo causa violencia; mientras que el ingreso, como variable del crecimiento económico, reduce la violencia, al nivel de significancia del 1%. De manera similar, la variable de disuasión del gasto en seguridad afecta adversamente la violencia, al nivel de significancia del 10%. Por lo tanto, este estudio sugiere una política para promover el crecimiento económico como el medio de generación de empleo-empleo entre los jóvenes y los desempleados. El empoderamiento de la juventud debe proporcionarse especialmente entre los desempleados mediante la concesión de servicios de crédito para financiar proyectos propios y fortalecer aún más las instituciones de disuasión.


2021 ◽  
Vol 11 (5) ◽  
pp. 7564-7570
Author(s):  
H. Samreen ◽  
S. Wizarat ◽  
Z. Mehdi ◽  
R. Ahmed

In this study, the theoretical and empirical effects of foreign investment, openness to trade, urbanization, and economic development on carbon dioxide emission levels (CO2) in Pakistan were examined. Annual time series for 38 years 1970-2018 were utilized. The Auto Regressive Distributed Lag (ARDL) bound test has been used to estimate the model which indicates the presence of cointegration among the variables. Long-run and short-run relationships were observed between Foreign Direct Investment (FDI) and CO2 emission levels revealing that increase in FDI results in increased CO2 emission levels contributing to environmental degradation. This endorses the theory of Pollution Haven Hypothesis (PHH) in the case of Pakistan. To achieve the goal of sustainable economic development, it is imperative to consider the possible negative effects of foreign investment on the environment. The study suggests limiting CO2 emissions by adopting more advanced low carbon technologies to ensure growth and a sustainable environment. Strict implementation of environmental laws for foreign and domestic firms both by defining CO2 emission limits, installation of proper waste management plants, and imposing a pollution tax are crucial steps for the improvement of environmental quality.


2013 ◽  
Vol 5 (3) ◽  
pp. 136-147
Author(s):  
Apanisile Olumuyiwa Tolulope

The study examined the effects of monetary policy shocks on output and prices in Nigeria. This is done through an empirical analysis of the effects of anticipated and unanticipated monetary policies on output and prices. Quarterly data from 2000:1 to 2010:4 were used. The long-run ARDL estimates indicate positive and significant effects of anticipated monetary policy on output and prices while unanticipated monetary policy was insignificant. Thus, the findings provide a significant departure from the existing diversity of evidences of empirical literature on the monetary policy actions and macroeconomic variables nexus. The study therefore suggested the use of a one fit for all policy instrument in stimulating output growth and prices in the economy rather than using one specific measure which could lead to the failure of monetary policy in Nigeria.


The study tries to evaluate empirically, the relationship between foreign direct investment (FDI) and environmental impact with GDP in India using annual data over the period 1980-1981 to 2017-18. The genuine effect on the earth, in any case, might be bigger because CO2 emission is one of the numerous contaminations produced by financial exercises. In any case, CO2 is a worldwide air toxin, our finding has some broad ramifications for the worldwide condition too, with India has risen as the fourth most noteworthy in the worldwide positioning of CO2 emissions by the turn of this century. The Autoregressive Distributed Lag (ARDL) Bound Test after which the cointegration and causality tests were analyzed. The error correction models were also predictable to scrutinize the short-run dynamics. The Granger causality test finally deep-rooted the presence of unidirectional causality which long runs from GDP and CO2 to foreign direct investment. The error correction estimates confirmed that the Error-Correction Term is statistically significant and has a negative sign, which confirms that there isn't any problem in the long-run equilibrium relationship between the independent (GDP & CO2 ) and dependent variables (FDI). The study concluded that FDI had a long-run relationship with GDP and CO2 emission


2020 ◽  
Vol 11 (1) ◽  
pp. 315-330
Author(s):  
Ali Kole

This study examined the nexus between the policy trilemma and its effects on real out-put in Nigeria. The study employed annual data spanning from 1990 to 2017. Interna-tional reserve has been included in the model due to its importance as noted in the literature. Following Hsing (2012) and Ajogbeje, Adeniyi and Egwaikhide (2018), Vector Autoregression (VAR) model was employed and specifically Autoregressive Distributed Lag (ARDL) bound test for cointegration was used. Data for the study was obtained from Aizenman, Chinn and Ito (2013), CBN Statistical Database and IMF International Financial Statistics Database. The study found a mix significant results between exchange rate stability and real GDP. The study further revealed that both monetary policy independence and capital account liberalization independently exert a significant and positive impact on real GDP but interactively they significantly re-duce the level of real output in the economy. The nexus between international reserve and real GDP was positive and significant. Therefore, the study recommends that for Nigeria to feel the positive impact of her trilemma choice on the economy, policy mak-ers should strive to pursue the policy combination consistently and buffered the econ-omy with a robust external reserve to cushion the effects of abrupt change in capital flow and exchange rate shocks.


Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 51
Author(s):  
Lorna Katusiime

This paper examines the effects of macroeconomic policy and regulatory environment on mobile money usage. Specifically, we develop an autoregressive distributed lag model to investigate the effect of key macroeconomic variables and mobile money tax on mobile money usage in Uganda. Using monthly data spanning the period March 2009 to September 2020, we find that in the short run, mobile money usage is positively affected by inflation while financial innovation, exchange rate, interest rates and mobile money tax negatively affect mobile money usage in Uganda. In the long run, mobile money usage is positively affected by economic activity, inflation and the COVID-19 pandemic crisis while mobile money customer balances, interest rate, exchange rate, financial innovation and mobile money tax negatively affect mobile money usage.


2018 ◽  
Vol 4 (2) ◽  
pp. 192-217 ◽  
Author(s):  
Phillip Akanni Olomola ◽  
Tolulope Temilola Osinubi

This study analyzed the macroeconomic and institutional determinants of total factor productivity (TFP) in the MINT (Mexico, Indonesia, Nigeria, and Turkey) countries during the period 1980–2014. Annual data covering the period between 1980 and 2014 were used. Data on real gross domestic product (real GDP), labor force, gross fixed capital formation, foreign direct investment (FDI), human capital, and inflation were sourced from the World Development Indicators published by the World Bank. Also, data on corruption, government stability, and law and order were obtained from the database of International Country Risk Guide. Panel autoregressive distributed lag (PARDL) regression technique was used to estimate the model. Results showed that TFP growth rate declined on average by 1.4 per cent and 1.8 per cent in Mexico and Turkey, respectively, while Indonesia and Nigeria did not experience productivity growth on the average. Results also showed that in the long run, human capital and government stability had positive and significant effects on TFP, while FDI and corruption had negative but significant effects on TFP. In the short run, there existed a significant negative relationship between TFP and inflation. However, the effects of human capital and corruption on TFP were positive and significant. The study concluded that human capital and corruption were key drivers of TFP in the MINT countries both in the long run and short run.


2020 ◽  
Author(s):  
Christian Rück ◽  
David Mataix-Cols ◽  
Kinda Malki ◽  
Mats Adler ◽  
Oskar Flygare ◽  
...  

ABSTRACTBackgroundVarious surveys have documented a negative impact of the COVID-19 pandemic on the population’s mental health. There is widespread concern about a surge of suicides, but evidence supporting a link between global pandemics and suicide is very limited. Using historical data from the three major influenza pandemics of the 20th century, and recently released data from the first half of 2020, we aimed to investigate whether an association exists between influenza deaths and suicide deaths.MethodsAnnual data on influenza death rates and suicide rates were extracted from the Statistical Yearbook of Sweden from 1910-1978, covering the three 20th century pandemics, and from Statistics Sweden for the period from January to June of each year during 2000-2020. COVID-19 death data were available for the first half of 2020. We implemented non-linear autoregressive distributed lag (NARDL) models to explore if there is a short-term and/or long-term effect of increases and decreases in influenza death rates on suicide rates during 1910-1978. Analyses were done separately for men and women. Descriptive analyses were used for the available 2020 data.FindingsBetween 1910-1978, there was no evidence of either short-term or long-term significant associations between influenza death rates and changes in suicides. The same pattern emerged in separate analyses for men and women. Suicide rates in January-June 2020 revealed a slight decrease compared to the corresponding rates in January-June 2019 (relative decrease by −1.2% among men and −12.8% among women).InterpretationWe found no evidence of short or long-term association between influenza death rates and suicide death rates across three 20th century pandemics or during the first six months of 2020 (when the first wave of COVID-19 occurred). Concerns about a substantial increase of suicides may be exaggerated. The media should be cautious when reporting news about suicides during the current pandemic.


Author(s):  
Muhammad Faheem ◽  
Azali Mohamed ◽  
Fatima Farooq ◽  
Sajid Ali

The study asseses the influence of  migrant remittances on financial development over the period of 1976-2018 in Pakistan. This study has applied the linear autoregressive distributive lag (ARDL) model and nonlinear autoregressie distributed lag (NARDL) model to check the symmetric and asymmetric effect of remittances. Results of the ARDL and NARDL bound test confirm remittances, FDI, real GDP and inflation significantly contributing to financial development. The outcomes of ARDL and NARDL have also confirmed the significant positive effect of  migrant remittances on financial development in long-run. The asymmetric ARDL  results show the existence of remittances nonlinear effect  on financial development. Specifically, the study found remittances decrease have a significant impact while remittances increase have no any significant effect on financial development. Based on findings, this study recommends the plan for the policymakers of recipient countries, especially Pakistan, could harvest the potential gain of migrant remittances though positive asymmetric association with financial sector development.


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