Economic growth and crude oil revenue in Nigeria

This paper investigated how oil revenue and the activities in the oil industry affected the size of income accrue to each Nigerian (Per capita income) from 1980 to 2019. The variables were sourced from the World Bank’s World Development Indicators (WDI), OPEC Statistics, Baker Hughes Rig Count and the central bank of Nigeria statistical bulletin. Using the AutoRegressive Distributional Lag (ARDL) we observed that explorative activities of crude oil in Nigeria positively impacted the size of individual income. The magnitude of the impact was massive irrespective of time; a 1% increase in exploration increases the size of individual income by 0.4786% in the long run and 0.6030% in the short run. The interaction of rigs by output (interaction of rig-count and oil-production) negatively impacted the size of individual income. This implies that the size of individual income in Nigeria is sensitive to the nature of the explorative environment of the Nigerian oil industry.

Impact of Oil Revenue Spending on Income Distribution: the Case of Azerbaijan

This paper examines the impact of the oil factor on income distribution in a resource-rich country, Azerbaijan. Since the early 2000s, the rapid increase in oil revenuesh as been used for the economic and social development in the country. The increased revenues from oil sales has led to a sharp increase in the share of the top 10% of the population in total income, the stabilization of the share of the lowest 10%, and a significant decline in the share of the middle layer. The widespread use of oil revenues has played a leading role in the formation of new structural features in social stratification. In addition to the sharp decline in extreme poverty in the country, the layer with a higher income has emerged. At the same time, increasing oil revenues has not given a strong impetus to the formation of a prosperous middle layer. This paper also demonstrates that the solution of the income inequality problem is related to improving the quality of institutions, enhancement strategies for the use of oil revenues in the short and long terms, as well as ensuring the consistent implementation of an active diversification policy.

The Linkage between Oil and Non-Oil GDP in Saudi Arabia

Saudi Arabia is one of the world’s major producers of oil. The Saudi Government has launched its vision for the coming decade: Saudi Vision 2030 (also known as 2030 Vision). Saudi Vision 2030 aims to diversify economic income and be independent of oil revenue. The focus of Saudi Vision 2030 is increasing the role of the non-oil GDP in the economy. In this study, I tried to examine the link between oil and non-oil GDP in Saudi Arabia. I used autoregressive distributed lag (ARDL) cointegration, the most common tool used to examine linkages among variables. My ARDL results confirm the long-term cointegration between non-oil GDP and oil rent, thus implying that oil rent-seeking strategies still exist in Saudi Arabia. The short-term dynamics confirmed the impact of oil rent over the non-oil GDP. The ARDL results led to analyses of asymmetric effects. The NARDL model estimated and confirmed the symmetric effect of the oil rent on non-oil GDP. These results demonstrate the challenges in diversifying Saudi Arabia’s income.

Trade Balance and Oil Shocks in African Oil Exporting Countries

This paper is driven by the vast influence oil money have on the current account balance of major oil producing countries in Africa and the role policy measures could play to soften these effects. Dwelling on the nonlinear techniques, two types of Threshold Regression were used to estimate data on 8 African countries from 1995-2019. The results show evidence of nonlinear impacts of oil revenue on the current account balances of the 8 countries. The nature of the impact relies significantly on the levels of the threshold variable. Precisely, the estimated threshold benchmark for financial development was 33.34; below this threshold the sensitivity of current account balance to crude-oil shocks is higher and the probability of policy measures to mitigate the effects is low and, beyond the threshold the sensitivity of current account balance to crude-oil shocks is low and the probability of policy measure to mitigate the effects is higher. The finding suggested among others that crude-oil shocks is not the primary problem of the current account imbalance of oil-exporting countries rather the nature of the domestic economic policy environment.

Increasing non-oil revenue potentiality through digital commerce: the case study in KSA

PurposeThis study mainly focuses on the potentiality of the e-commerce industry's opportunities and limitations in the Kingdom of Saudi Arabia (KSA) specifically toward non-oil revenue sectors.Design/methodology/approachE-commerce contribution to the retail market industry becomes more global and more flexible with the rapid growth of the Internet and information technology revolution. A new way of conducting business is rendered by e-commerce, which helps to make a profit electronically.FindingsThe main contributions of e-commerce are management of company operations, easy and cheaper ways of extending their markets and coordinating with the value chain across different borders. In addition, the Internet and e-commerce are responsible for removing language barriers, cultural diversification and extending the market to the national boundaries. The countries would have many innovative and dynamic aspects by the beginning of the global market that increases national revenue, market, employment opportunity, capital and access to technology and information.Originality/valueAt present, KSA's national revenue mostly depends on oil and its related commodities, while other trades compete with the global market and increase national income. So, it is essential to increase other Saudi products to reach a global business level through e-commerce. Moreover, the study suggests accessing new markets and participating in global production to improve e-commerce structure without affecting current employment patterns, industry structure, productivity and Saudi culture.

OIL PRICES DROP EFFECT ON CONSTRUCTION INDUSTRY IN KUWAIT

The oil price has fallen significantly from its peak at $128.14 per barrel in March 2012, reaching a low of $29 in February 2016. Kuwait depends mainly on oil revenue to finance infrastructure governmental projects. Oil price decline has a direct impact on economic and capital expenditure in the construction industry’s resources in Kuwait, specifically construction material. This research investigates the effect of changes in oil prices over range from 2007-2017 on the construction industry in Kuwait. Different types of data regarding global economic data, construction materials, and awarded contracts during the study period were gathered and analyzed. A set of statistical and correlation analysis are performed. The study revealed that many construction materials are affected by oil price in Kuwait. The GDP is highly affected by oil price drop; this implies that there is a limited result of government plans to divers governmental finance. A regression model is proposed to forecast the construction cost per square meter in Kuwaiti dinar based on study variables. The study results can be used to evaluate the effect of oil price drop in similar construction environments such as Gulf countries and to predict construction costs changes due to oil price decline.

Non-Oil Revenue And Economic Growth of Nigeria (1981 To 2019).

The study investigated the impact of non-oil revenue on the economic growth of Nigeria for the period 1981 to 2019. The Autoregressive Distributed Lags (ARDL) technique was adopted alongside the unit root test, which showed that in all cases, the variables in level form were non-stationary but their first differences were found to be stationary. This shows that all the variables (including economic growth) are co-integrated at order 1. The short run diagnostic tests in the result are generally impressive since the adjusted R-squared value of 0.68 is relatively high and indicates that 68 percent of the short-term changes in economic growth is explained by the explanatory variables. The Durbin-Watson statistics is also impressive at 1.95, indicating the complete absence of autocorrelation in the model. However, in the long run the coefficient of tax revenue (TAXR) is significant among the non-oil revenue variables. This coefficient is positive and passes the significance test at the 5 percent level. This means that increased tax revenue leads to economic growth in the long run. A one percent rise in tax revenue in the current period will lead to a 0.656 percent growth in the economy over a long period. The coefficient of the other non-oil revenue variable (NTAXR) fails the test at the 5% level of significance. However, given that tax revenue is the main non-oil revenue, the result shows that non-oil revenue will most likely improve economic growth in Nigeria. For the other variables, only the coefficient of human capital (HUC) passes the significance test at the 5 percent level. The results of the study show that economic growth Granger causes nontax revenue inflow, rather than the other way around. This clarifies why NTAXR did not pass the significance test in the regression result. On the other hand, tax revenue Granger causes economic growth. These results indicate that a reverse relationship exists between economic growth and non-oil revenue, through the component of non-tax revenues. Finally, the study recommends that development of policies that will increase tax revenue is key to economic growth. Similarly, the researcher also recommends that investment in human capital development will boost economic growth of Nigeria both in the short and long run.

The murder of Ken Saro-Wiwa

Ken Wiwa heard of his father's execution in November 1995 while he was in New Zealand, as part of his campaign against the Nigerian government's planned judicial murder of his father and eight other Ogoni leaders. The Commonwealth Heads of Government Meeting was due to be held in Auckland the following week. At the time of his death Saro-Wiwa was the leader of the Movement for the Survival of the Ogoni People (MOSOP), which sought to challenge the situation whereby a community which had contributed to the exchequer an estimated $30 billion in oil revenue found itself without basic amenities, living in a wretched environment, and being daily assaulted by oil exploration. He had accused Shell Oil company, which had a very close relationship with the Nigerian government, of 'waging an ecological war against the Ogoni'. After the executions, Nigeria was roundly condemned by international leaders, as was Shell itself.

The Effect of Federal Government Revenue and Expenditure On Economic Growth in Nigeria – An Empirical Review

This study examined the effect of federal government revenue and expenditure on the economic growth of Nigeria for the period 1983 to 2018. Prior to now many studies have been completed on the subject matter and yet there doesn't seem to be a consensus of opinion amongst the different researchers on the relationship between revenue and expenditure interface in Nigeria. This could be ascribed to the different approaches gies set forward to clarify the relationship; thus warranting the need for this research .The investigation embraced an ex-post facto research design to produce test results via Bounds test, ARDL short/long run estimates and to make forecasts. The full scale economic factors used in the study includes Real Gross domestic product (proxy for economic growth), federal government retained revenue, non-oil revenue, capital expenditure and recurrent expenditure. We chose to be different in this study with a conscious omission of oil revenue as a variable of study. Findings of the research showed that federal government retained revenue; non-oil revenue and recurrent expenditure were statistically significant in explaining the relationship with economic growth in the short run; while capital expenditure was not at 5% Alpha level. Federal government retained revenue was also found to be statistically significant in the long run. On the basis of these findings, it was concluded that the influential growth variables are federal government retained revenue; non-oil revenue and recurrent expenditure. The researchers thus recommend that government should be tactful in her efforts at fiscal policy synchronization. There is need to monitor Nigeria’s expenditure pattern, increase in revenue and a consequent increase in governments retained revenue. This will make for an effective adjustment in the utilization of capital expenditures and to assist with raising the level of economic growth in Nigeria