Institutions, Infrastructure and Economic Growth in Nigeria.

The study examines the impact of institutions and infrastructures on economic growth in Nigeria. The study contributes to the infrastructure-growth nexus literature in Nigeria by accounting for institutions into the model. The justification for the inclusion of the variable is based on the fact that good institutions will induce growth and that it will serve as an impetus for investor to invest in Nigeria. The result shows that there is long-run cointegrating relationship using the bounds-testing approach of Pesaran et al (2001). The study shows that population and institutions contributes positively to growth and that public infrastructure has a negative significant impact on growth. It is strongly recommended that that government should monitor her public infrastructure spending by reducing wastages so that it can contribute positively to growth. In addition, government should adhere to good institutions so as to increase the inflow of foreign direct investment into Nigeria

Macroeconomic Effects of Fiscal Policy Changes in Nigeria

The study examines the relationship between fiscal policy and macroeconomic performance in Nigeria in the post economic crisis era. The vector autoregressive, granger causality and impulse response function estimators are employed to capture the interactions between fiscal policy and macroeconomic variables. The findings indicate that the previous values of government revenue employed in financing government expenditure have impact on macroeconomic factors except for per capita income growth. However, only money supply to the size of the Nigerian economy reported a direct relationship with total expenditure growth, where others report an indirect relation. Also, the fiscal balance growth only enhances lending rate, total trade to economic size and exchange rate, and the other two variables report otherwise. The paper submitted that fiscal policy is important to achieve better macroeconomic performance in Nigeria

Threshold cointegration and the short-run dynamics of twin deficit hypothesis in African countries

This paper examines the relationship between the fiscal deficit and the current account deficit using the threshold cointegration approach of Hansen and Seo (2002). Using quarterly data for nine African countries for the period 1980-2009, a long-run positive cointegrating relationship is established for six out of the nine countries examined, while the relationship is negative for the other three. This provides qualified support for the twin convergence hypothesis. Threshold error correction effects show some diversity in the speed of adjustment of the current account relative to the speed of adjustment of the fiscal deficit. This may be a reflection of differences in the way fiscal policy issues are handled across the countries

Output Uncertainty, Monetary Uncertainty and the Nigerian Demand for Money

The study examines the stability of money demand in Nigeria for the period 1960-2015 by including two GARCH-based measures of output uncertainty and monetary uncertainty. These two measures of uncertainty were included in the money demand function for Nigeria because they could affect public’s holding of money. Prior studies: Previous only examined the stability of money in Nigeria without examining the possiblity of uncertainties in monetary and output aggregates, a gap which this study fills. Approach: The study used the nonlinear autoregressive distributed lag (NARDL) to examine the short and long-run relationship. Results: It was discovered that only monetary volatility exert significant impact on the demand for money in Nigeria both in the short run and in the long run. However, output volatility is not significant both in short-run and the long run. In addition, including the two uncertainty measures yield a stable demand for money in Nigeria. Implication: Monetary uncertainty has strong substitution effects as compared to precautionary effects and that Nigerians substitute cash by shifting to alternative assets. Value: The study contributed to the literature by examining the non-linearity and uncertainties in the stability for demand for money in Nigeria

ECONOMIC GLOBALIZATION, ENTREPRENEURSHIP AND INCLUSIVE GROWTH IN AFRICAN OIL EXPORTING COUNTRIES

Policymakers in developing nations espouse the objective of attaining expeditious and enduring economic expansion. This is because such expansion will provide individuals with a wide range of chances to be innovative and productive. The imperative for these policies to expedite growth is not unrelated to the elevated levels of unemployment, severe poverty, and widening inequality that have contributed to sluggish inclusive growth. In order to attain the requisite level of expansion, a renaissance in entrepreneurial endeavours and more extensive economic globalisation are required. The study investigated the impact of entrepreneurship and economic globalisation on the GDP per employed individual in oil-exporting African nations. The study employed an ex post facto research design. Participating in the study were sixteen oil-exporting African nations. Data were taken from the World Bank Development Indicators, the World Bank Entrepreneurship Survey, the KOF Globalization Index, the Worldwide Governance Indicators, the African Infrastructure Development Index, and the International Energy Agency for the sample period of 2006–2021. Using descriptive and inferential statistics, the data were analysed with a significance level of 5%. The study's purpose was specifically accomplished by the utilisation of a dynamic heterogeneous panel consisting of the following: pooled mean group, mean group, dynamic fixed effect, and augmented mean group. The study revealed that economic globalization and entrepreneurship significantly influenced GDP per person employed (Wald-test (6, 249) = 39.27, p < 0.05). The study concluded that economic globalization and entrepreneurship have a significant influence on GDP per person employed in the selected oil-exporting countries in Africa. The study recommends that that oil exporting African countries policy makers should implement policies that would encourage economic globalization and entrepreneurship so as to reap the benefits thereof. This is because economic globalization provides entrepreneurs access to new markets and promotes good quality and quantity of product

Fiscal and external deficits nexus in GIIPS countries: evidence from parametric and nonparametric causality tests

This paper investigates relationship between fiscal and external deficits in five European Union countries: Greece, Ireland, Italy, Portugal, and Spain (GIIPS) using quarterly data for the period 1980:1-2020:1. Literature on the relationship between these series has not only used linear techniques, but generally reported inconclusive results. Nonlinearity relationship has been overlooked even though fiscal policy is likely to exhibit nonlinearity due to its sensitivity to political decisions. To capture this nonlinearity behaviour, nonlinear causality technique is applied here in addition to the usual linear techniques used in the extant literature. The results show that there is evidence of unidirectional nonlinear causality from trade balance to government deficits in Greece and Italy, a nonlinear unidirectional causality from government deficits to trade balance in Portugal. The results also indicate evidence of a nonlinear bi-directional causality between the trade and government balances in Ireland and Spain. The policy implication of these results is that governments of these countries need to address fiscal deficits to manage their trade balances. Policies that will improve the countries’ revenue base, such as tax and labour market reforms as well as capital market reforms to engender productivity and increase competitiveness would be beneficial

IMPACT OF FDI ON EXCHANGE RATE IN NIGERIA: A COMBINED COINTEGRATION APPROACH

This study examined the long-run nexus between foreign direct investment (FDI) inflows and exchange rate (EXC) in Nigeria using the Gregory-Hansen, and Bayer-Hanck cointegration approaches from 1980M01 to 2019M12. The result showed that there is presence of long-run association between FDI and exchange rate in Nigeria. The Dynamic Ordinary Least Square (DOLS) technique was employed to establish the impact of FDI on the exchange rate. A negative nexus was found between the two variables. This implies that an increase in FDI brings about an appreciation of the Naira and vice versa. The study recommended that the Nigerian Government should strive to engage in activities that will minimise the outward leakages of Naira by attracting foreign investors into businesses, primarily in the oil sector. This action could lead to massive dollar injection, like setting oil refineries against crude oil extraction and exportation, which gives lesser USD inflows into the economy

The role of structural breaks, nonlinearity and asymmetric adjustments in African bilateral real exchange rates

This paper was accepted for publication in the journal International Review of Economics and Finance and the definitive published version is available at http://dx.doi.org/10.1016/j.iref.2016.05.004.This paper examines the validity of the purchasing power parity, PPP for six African countries of Botswana, Ghana, Kenya, Nigeria, South Africa and Tanzania using the countries' bilateral real exchange rates with their fifteen major trading partners for the period 1960–2011. It uses the Lagrangian multiplier, LM, which accommodates up to two endogenous structural breaks in addition to conventional unit root tests. The paper also uses the threshold cointegration tests to explore nonlinearity and asymmetric adjustments of the series. Results from the LM unit root tests indicate that the exchange rates of Botswana, Ghana, Kenya and Nigeria relative to their major trading partners are stationary. The results from the threshold cointegration suggest that there is a long-run relationship between the series and that the adjustments are asymmetric. Appreciation is faster than depreciation in most of the countries. This is consistent with suggestions that countries are intolerant of depreciation