Foreign Direct Investment - Growth Nexus: The Case of Nigeria

The quest by developing countries for increased FDI stems from the assumption that FDI leads to economic benefits within the host country. The study examined the paradigm ‘FDI led growth’ using dataset for Nigeria obtained from Central Bank of Nigeria span between 1970 and 2014. Modern econometric tools of Vector error correction model and Granger Wald test were employed. The econometric analysis reveals that there is steady long run relationship between FDI and output in Nigeria. Additionally, the causality result indicates that there is unidirectional causality between trade openness and per capita income, running from trade openness to per capita income proxy for economic growth. On the other hand, there is absence of short-run causality between FDI and economic growth in Nigeria. The policy implication is that FDI can be considered as an engine of growth and development. In the case of Nigeria, FDI can be used as a tool for structuring the economy and achieving inclusive growth. This can be done by attracting more FDI through creating conducive business environment, development of infrastructures and strengthening security especially in north-eastern part of the country

FDI and Economic Growth Nexus: Empirical Evidence from Nigeria (1970-2012)

The study has examined the impact of FDI on economic growth of Nigeria using time series data between 1970 and 2012. Secondary data were sourced from Central Bank Statistical Bulletin. An exploratory research design was conducted using OLS, ADF unit root test and Pair-wise Granger causality test. The major objective of this paper is to analyse the impact as well as direction of causality between FDI and economic growth in Nigeria. The result of the OLS shows a positive and significant relationship between FDI and real GDP proxy for economic growth. Also, granger causality test shows a unidirectional causality between the FDI and Nigerian economic growth. The existence of a positive relationship between FDI and economic growth necessitates the need to continue implementing policies that will attract FDI especially in the non-oil sectors of Nigeria. The study also recommends provision of adequate security especially in the North-eastern part of the country in order to control terrorist activities and pave way for more investment and as well domestic investment should also be encourage through providing necessary incentives to local businessmen. Key words: FDI, Economic growth, Granger causality and OLS.

Socio-Demographic Determinants of Poverty in Nigeria and its Gender Differentials

Poverty reduction is one of the greatest challenges facing international community and it is an invaluable requirement for sustainable development. This study was conducted to empirically examine the influence of socioeconomic as well as demographic variables on households’ vulnerability to social exclusion or deprivation with more emphasis on gender inequality. The study employed binary probit regression analysis of poverty as well as Oaxaca-Blinder decomposition to examine factors responsible for inequality with respect to socio-economic fortunes among Nigerian households. Evidence from the study revealed that socio-demographic variables as well as labor characteristics are strong determinants of poverty in the country, and the findings confirmed to the theoretical propositions on causes of poverty. However, empirical results from the Oaxaca-Blinder decomposition show that female headed households are more disadvantaged in terms of socioeconomic deprivation than the male headed households. The study concluded by presenting concluding remarks and policy implications for policymakers toward poverty reduction in Nigeria

Re-Examination of the Impact of Unemployment on Economic Growth of Nigeria: An Econometric Approach

The study has examined the impact of unemployment on economic growth of Nigeria using time series data between 1982 and 2014. Secondary data were sourced from Central Bank Statistical Bulletin. An exploratory research design was conducted using OLS, Phillips-Perron unit root test and Pair-wise Granger causality test. The major objective of this paper is to analyse the impact as well as direction of causality between unemployment and economic growth in Nigeria. The result of the OLS shows a negative relationship between unemployment and real GDP proxy for economic growth which is in line with Okun’s law. Also, granger causality test shows absence of causality between the unemployment and Nigerian economic growth. Government expenditure and capacity utilization that are incorporated in the model portrays positive relationship with economic growth. The existence of a negative relationship between unemployment and economic growth necessitates the need for government to introduce programs and policies that will create job opportunities for the teeming unemployed youths in Nigeria. The study also recommends provision of skills acquisition centres and transformation of the educational system so that youths will be job creators rather than job seekers. Keywords: Unemployment, Economic growth, Granger causality, Okun’s law and OLS

Patterns and Micro-Drivers of International Emigration in Nigeria

Abstract. The study attempts to unfold the determinants of international migration from Nigeria to other countries by using 2009 Nigeria Migration Survey data by World Bank (2011). It also employs econometric techniques of linear probability and binary probit models. The findings indicates that individual and household characteristics as well as economic and geographical factors play significant roles in making Nigerians to migrate abroad. The individual characteristics are gender (if male), age, marital status and education years, while household size is the only significant factor under household characteristics. The amount of remittance is the only significant economic determinant. The statistically significant geographical factors include locality (if urban) and geopolitical zones (if south-east, south-south, south-west and Lagos). Second, the same factors are the determinants of international migration to OECD and African countries, albeit they are stronger in influencing migration to African countries than to OECD countries. However, amount of remittance has positive effect on international migration to OECD countries but it is negative on international migration to African countries. Thus, the policy implication is that any international migration policy should target the above determinants of international migration in order to contain it.Keywords. International migration, Remittances, Probit model, Policy implications.JEL. F22, F24, C31, F42

Sources of Market Power among Firms in Sub-Saharan Africa: Do Institutions Matter in Competitive Policies

In the context of a high prevalence of both poverty among households and business failures among firms in the majority of Sub-Saharan African (SSA) countries, competition is seen as one of the viable tools for transforming and improving these economies. This can be achieved by boosting productivity, improving output markets, increasing innovation and promoting economic growth. This study examines the sources of market power among firms within a variety of institutional settings using a large sample of data from 23 SSA countries. Tobit panel models comprising both fixed and random effects are used to estimate the determinants of market power. The study reveals that a large number of firms control less than 5 percent of the market with a few firms controlling between 5 and 34 percent of the market. At the same time, there are a small number of firms controlling between 30 and 100 percent of the markets in Sub-Saharan Africa. The findings further show that economic and political institutions significantly matter in the determination of power among firms in SSA. However, the influence of institutions varies significantly depending on the type of institutions and regional differences

SOCIO - ECONOMIC DETERMINANTS OF HOUSEHOLDS FUEL CONSUMPTION IN NIGERIA

Attainment of universal access to affordable, reliable, sustainable and modern energy is one of the goals for Sustainable Development Goals (SDGs). Existing data and statistic suggest that high proportion of households in less developed countries heavily rely on solid fuels for domestic requirements. Also, recent data revealed that in Nigeria over 70 percent of households depend on fuel wood for cooking which indicate the task ahead of policy makers in the country for ensuring access to efficient sources of energy before the expiration of sustainable development goals. In this study we empirically examined socio-economic factors that influence households’ likelihood of energy consumption in Nigeria. In order to achieve our specific objectives, we adopt 2013 demographic health survey dataset for Nigeria and multinomial logistic regression was conducted in analyzing the factors affecting households’ decision for energy demand. Evidence from the study revealed that demographic characteristics, economic status, public awareness and social variables are strong determinants of households’ energy choice in the country and conformed to the propositions of “Energy Ladder Hypothesis”. We concluded by presenting concluding remarks and policy implications for decision making toward ensuring access to affordable, sustainable and efficient energy in Nigeria

Assessing the Factors Influencing Waqf Contribution Among Public Employees in Gombe Metropolis, Nigeria

Waqf is a significant socio-economic tool utilized by Muslim societies worldwide for the betterment of the public. Despite its recognized potential, empirical research on the factors influencing waqf contribution among Muslims in Nigeria, particularly in Gombe Metropolis, is limited. This study addresses this gap by examining the factors affecting public employees' participation in waqf initiatives. Data for this study is obtained through administration of structured questionnaire and analysed using Poisson and Tobit regression models. Our results indicate that waqf contribution among public employees is notably influenced by income level and trustworthiness. Additionally, the interaction between income level and factors like trustworthiness, religiosity, and altruism plays a significant role in enhancing employees' contributions to Waqf institutions. The policy implications suggest that stakeholders should encourage collaboration and integration of Waqf initiatives into public institutions, making it easier for employees to make regular contributions. There should also be specific awareness and educational programs designed to inform public employees about the significance and advantages of Waqf in promoting socio-economic development

Assessing the awareness and perception of waqf among business owners in Gombe State, Nigeria

Purpose – The literature about the dynamics of Muslims' awareness and perception of waqf has been generally scarce,especially in Nigeria. As renewed efforts are emerging to develop a new waqf regime in the country, this study examines this aspect in Gombe metropolis, Nigeria, with a view to identifying the key factors shaping people's perception and awareness towards waqf. Design/methodology/approach – To achieve the objective of this study, primary data were collected through a survey among 494 business owners in the Gombe metropolis. The data were then analysed using probit and Tobit regression models. Findings – The study found that altruistic behaviour, religiosity level, educational level and young age are among the factors that determine people's perception and awareness towards donating to waqf among business owners in Gombe. Altruism and young age embolden businesspersons to recognise the effectiveness of waqf institutions in solving socioeconomic challenges. Practical implications – The findings of this study imply that waqf has huge potential in the study area and that with well-structured, organized waqf education programmes within the business community using diverse avenues, a robust waqf sector can be developed. Originality/value – As far as the study area and the entire Nigerian Islamic economics and finance landscape is concerned, the study has explored a novel research area. Given the infant stage of empirical studies on waqf in Nigeria, there are virtually no previous attempts to examine the awareness and perception of businesspersons towards waqf; variables that are key to the development of an effective sector