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.

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

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

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 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

Modelling the determinants of government expenditure in Nigeria

In Nigeria, the government activities vis-à-vis public expenditure has grown rapidly both in absolute, relative and as a share of GDP over the years. These growths in government expenditure have been due to certain factors which are believed to have significant effect on the fiscal operation of the country. These perceived implications of government expenditure expansion on the economy necessitate the need to understand factors that are responsible for the growth in government expenditure size. For that, the study employs a slightly modified version of Wagner’s law by incorporating new variables such as oil revenue, trade openness, public debt, exchange rate, oil price, taxation and inflation—to examine their effect on government expenditure size. The study uses time series data for Nigeria spanning between 1970 and 2017. Time series data were analysed using Autoregressive Distributed Lag (ARDL) model. The findings of the study reveal that oil revenue, GDP, population, trade openness, oil price, taxation and inflation are important determinants of the size of Nigeria’s government expenditure. The study recommends among others that the revenue base of the country should be diversified beyond oil sector, strengthening of fiscal and monetary policies to ensure stability in price level and exchange rate, the use of fiscal rule through excess crude oil account should also be strengthened to create buffer against fluctuation in oil price and as well appropriate population reduction policies should be undertaken to curtail rapid population growth

Determinants of firms innovation in Nigeria

Nowadays with rapid changes in the business world, companies all over the globe are increasingly including innovation as one of their strategies to ensure business expansion and profitability. This study examined the determinants of a firm's innovation in Nigeria. The study utilized enterprise survey data developed by the World Bank, which were analyzed using probit and tobit regression models. The findings showed that investing in research and development (R&D), formal training, a firm's size, exporting status, competitors, location, type and sector, or activity of firms all positively drive the propensity of a firm to innovate. It was however established by the study that the firm's age and employee education negatively affect the chances of innovation. Equally it was found that almost the same factors (investing in R&D, formal training, a firm's size, type, and sector) were the significant determinants of product, process, organizational, or marketing innovation. Thus, the policy implications of the findings are that firms should make the significant factors their top priorities in their quest to boost innovation. Keywords: formal training, innovation, R&

Consumer Preferences for ‘’Ganda’’ (Edible Hide) Attributes in Sokoto Metropolis, North-Western Nigeria

A study was undertaken in Sokoto metropolis North-western Nigeria to identify attributes of Ganda, determine the relative importance and preferences for the identified attributes. A multi-stage sampling technique was used to select a total of 90 respondents from the largest (Local Government Areas) to the smallest administrative unit (Area) that make up the metropolis. Respondents were asked to list and rank according to their preferences Ganda attributes that are important to them. And to indicate their preference for retail cut size and reasons for their choice. Quality attributes of ganda identified in order of importance. Were Thickness > Cleanliness > Softness > Freshness > Hardness = Fattiness > Openness with respective proportion of 40.23, 37.93, 10.34, 5.75, 2.30, 2.30 and 1.15%. Preference for attributes on a rating scale of (1 very low to 5 very high) and relative importance (Rank scores) of attributes followed the same pattern, where thickness and cleanliness (between which there was no significant difference scored higher (p<0.05) than all other attributes. There were no differences (p>0.05) softness, freshness, hardness, fattiness and openness. A greater proportion of respondents (75.56%) prefer large retail cuts. The dominant reason for retail cuts choice was cheapness. Large, thick and clean Ganda cuts will offer more competitive advantage