Policy Mix, Convergence and Growth in ECOWAS Countries

This paper is just a sample template for the prospective authors of IISTE Over the decades, the concepts of This study attempts to examine the convergence of macro-economic policy variables among Economic Community of West African Countries (ECOWAS); examines the nature of convergence of macroeconomic policy variables among ECOWAS countries and analyze  the impact of convergence in policy mix on growth in ECOWAS countries. This was in view of examining policy mix, convergence and growth in ECOWAS countries. The study deploys the endogenous growth framework of Solow-Swan (1956) as modified by Ramsey using the Cobb Douglas production function for both the convergence equation and growth equation.  The study employed Panel Ordinary Least Square method on panel annual time-series data and analyzed with fixed-effect since a common attribute is expected from the selected countries. Panel unit root data tests were conducted in order to determine whether the series has a problem of unit-root using Dickey-Fuller. The finding of the study showed that all the selected countries diverge in their fiscal variables while they converge in monetary policy. Hence the study recommended that further studies can also conduct their research on regional basis in order to account for appropriate possibility for economic integration within the region among African countries. Key Words: Policy Mix, Convergence, Economic Growth, ECOWAS, Regional Integration

Foreign Direct Investments and Economic Growth in Nigeria: A Disaggregated Sector Analysis

This paper attempts to investigate the impact of Foreign Direct Investment (FDI) on economic growth in Nigeria. The research developed a structural macroeconometric model consisting of four blocks made up of supply,  private demand, government and external sectors. The model deploys 18 simultaneous equations  and 100 variables to capture the required proxies. The research adopted a three-stage least squares (3SLS) technique and macroeconometric model of simultaneous equations to capture the disaggregated impact of FDI on the different sectors of the economy and the inter-linkages amongst the sectors in order to give better insight into the variations inherent therein. The finding shows that FDI has a significant impact on output of the economy but that the growth effects of FDI differ across sectors. The paper recommends sector-specific policies, enhanced trade openness, import substitution development strategy incentives to existing investors, and potential overseas investors so as to enhance the development of the country. Keywords: Foreign Direct Investment, Economic Growth, Simultaneous Equation, Macroeconometric Mode

Does Corporate Social Responsibility Improve Financial Performance of Nigerian Firms? Empirical Evidence from Triangulation Analysis

This paper examines the impact of Corporate Social Responsibility (CSR) on Financial Performance of Firms in Nigeria. This study utilizes primary data that were obtained through the use of structured questionnaires. The questions were structured in such a way as to gather pertinent and specific information on how effective Corporate Social Responsibility (CSR) has improved the financial viability of firms in Nigeria. This paper employs both descriptive and quantitative techniques in which chi-square technique was used to test the significance relationship among the frequencies. The study reveals that proper and effective CSR goes a long way in improving the trend of firms’ financial performance in Nigeria using Cadbury Nigeria Plc. as the study area. It was observed that CSR could be a key instrument to the financial development of any organizations through the process of giving back to the community

Informal Sector and Employment Generation in Nigeria: An Error Correction Model

This paper examines the impact of informal sector on employment generation in Nigeria during the period 1970 to 2010 making use of annual time series data. The empirical analysis rests on the augmented Solow growth analytical framework. Our findings show that informal sector activities have significant impact on absorbing the large pool of labour force in Nigeria. The study contends that human capital formation is positively related to unemployment rate which reflects the dearth of government expenditure on education in the country. Therefore, there is an urgent need for the government to re-examine its policies on informal sector. Key Words: Informal Sector, Employment Generation, Nigeria, Cointegration

Economic Growth and Unemployment Nexus: Okun’s Two-Version Case for Nigeria, South Africa and United States of America

Okun’s law in its original form was predicated on the experience in the United States of America. Some methodological refinements have been added based on studies conducted in other climes with varied results. This research investigated the applicability of this law in Nigeria, South Africa and the United States of America. The study conducted a comparative analysis of three of the versions of the law. The research employed Ordinary Least Squares method having validated it’s appropriateness with Dickey-Fuller and Philips-Perron tests. The demonstrated superiority of the dynamic version over the difference version was manifest in all the countries. The result also showed that the dynamic version of the law was applicable in the three nations while the difference version showed the lack of linkage between economic growth and unemployment only in Nigeria. Deployment of employment creative employment schemes, labour market reform and economic restructuring are recommended in the Nigerian case.  The policy makers on South Africa and USA are enjoined to pursue growth- inducing policies.&nbsp

MICRO CREDIT AS A TOOL FOR POVERTY ALLEVIATION IN OGUN STATE, NIGERIA 1

ABSTRACT This paper examines the concept of micro credit as a tool for alleviating poverty in Nigeria. Micro credit is about providing specialized credit savings and other financial services of small amount to micro entrepreneurs to enable them expand their business opportunities, increase their income and their living standards. This study utilizes primary data that were obtained through the use of structured questionnaires. The questions were structured in such a way as to gather pertinent and specific information on how micro credit has enhanced the quality of life of rural dwellers of the Ijebu North Local Government Area of Ogun state, Nigeria. This paper employs both descriptive and quantitative techniques in which chi-square technique was used to test the significance difference among the frequencies. The findings indicate that micro credit to some extent enhances the general welfare of rural dwellers thereby reducing the level of poverty in the economy if they are properly financed and managed

Bankruptcy and Insolvency: An Exploration of Relevant Theories

The essence of the law on bankruptcy is to collect the debt of an entity and distribute such asset among the contending claimholders. It is, also meant to resolve the broad issues of business failure in the context of the imminent or indeed the actual collapse of the indebted entity. The objective of the study is to explore relevant theories guiding the procedure of distribution or entitlement in bankruptcy among a group of agents. The study employed exploratory research method via an extended literature review, to investigate the underlying principles guiding the allocation of a given amount of a perfectly divisible good among a group of agents. The results of this extended literature review indicate that the procedure of distribution or entitlement in bankruptcy is supported by five of the theories reviewed while only value based theory posits the absence of any cogent solution to the financial distress of the debtor. The knowledge of theories is not enough for business survival, the ability to predict the possible occurrence of business failures is necessary. Market based models including the stock market option valuation approach perform better than the earlier models which rely heavily on historical accounting figures. Keywords: Bankruptcy, Bankruptcy Theories, Exploratory Research, Genetic Programming Model JEL Classifications: G33, KII, K1

ECONOMIC GROWTH AND MACROECONOMIC DYNAMICS IN NIGERIA

Purpose. The role of macroeconomic variables in shaping the economic status has been debated in the literature. The management of these factors has been epileptic and sometimes contradictory with consequential implications for sustainable economy. This study therefore examined the relative significance of macroeconomic factors (inflation rate, interest rate, exchange rate and unemployment rate) on current national income. In addition, it sought to ascertain the relative importance of prior income (past GDP) on current national income (current GDP) based on data obtained between 1975 and 2015. Methodology. The study deployed pre-estimation descriptive statistics and stationarity tests using the Augmented Dickey Fuller test and Phillip Perron tests. Johansen cointegration test was applied for establishing the long run relationship of the variables. The final phase is the post estimation tests to confirm the robustness of the estimated model. These are the Breusch-Godfrey test to check for any form of auto correlation among the variables, the heteroskedasticity test and the Impulse Response analysis of the dependent variable with respect to shocks in the explanatory variables. Findings.The result findings revealed that inflation contributes negatively to economic growth. Interest rate, exchange rate and unemployment impact economic growth positively. The entire explanatory variables have no short-run effect. The result of the Breusch-Godfrey LM and Breusch-Pagan-Godfrey test indicated the absence of serial correlation and heteroscedasticity respectively. In effect, by itself, macroeconomic stability does not guarantee sustainable high rates of economic growth in the absence of key institutional and structural measures. The study recommended diversification of the economy and the use of inflation targeting which would be commensurate with the level of economic growth should be pursued by policy makers Limitations. This research examined the impact of the various macroeconomic variables on the economy over a period of 41 years. A structural break analysis of the impact before and after major policy shifts like Structural Adjustment Programme (1986), Financial Sector reform (2004), Global Financial Crisis (2007 - 2008) etc. should be explored by new studies. Originality. This study is an original work. It has not been published in any other journal and is not being considered for publication by another channel.