Determinants of Aggregate Consumption Expenditure in Nigeria

The study examined the determinants of aggregate consumption expenditure in Nigerian. The model used in the study was derived from the Keynesian consumption function where consumption is explained by variations in income, C= f(Y). It was also specified to embrace the postulates of consumption expenditure that are not based on current income alone, but on other explanatory variables. Thus gross consumption expenditure was the dependent variable while income, interest rate, inflation rate and exchange rate were the explanatory variables. Unit root test using the Augmented Dickey Fuller test was conducted to test for stationarity among variables employed. The Johansen Co-integration test was also employed to test for long run equilibrium relationship among the variables. The study showed positive relationship between consumption expenditure and income and proved that the Nigeria consumption function conforms to Keynesian consumption model and also incorporates the idea of other well known theories as, interest rate; price level and exchange rate were significant variables explaining consumption behaviour in Nigeria. Policies to combat inflation, employment creation to increase purchasing power in the hands of more Nigerians and a check on the continuous depreciation of the naira were suggested recommendations

Empirical Review of Globalization and Nigerian Economic Performance

Globalization has increased the integration and interdependence of economies among one another. It has come to be seen as a panacea for improved economic growth. This is made possible by an integrated global market marked by improved technology, investment and competition. This study thus, examines the performance of Nigeria in the global economy. The study made use of five explanatory variables to test for the performance of the economy in the global market. Unit root test using the Augmented Dickey Fuller test was conducted to test for stationarity among variables employed. The Johansen Co-integration test was also employed to test for long run equilibrium relationship among the variables while the Granger Causality test was conducted so as to ascertain the causal relationship between variables. The ECM was also conducted. The paper concluded that globalization can stimulate the rise in economic growth of a country. Nigeria however has not benefitted enough from globalization owing to her over dependence on oil export as the major source of earning, thereby neglecting other potential sectors in the economy. The paper proffered diversification of the economy from crude oil, prudent government spending and conducive and enabling environment for both the growth of other important sectors and improved FDI as strategies to give Nigeria a stand in the competitive global market. Keywords: Globalization, Economic Integration, Degree of Openness, Convergence and Economic Growth

Government Expenditure, Foreign Direct Investment and Economic Growth in Nigeria

Government expenditure and Foreign Direct Investment (FDI) are vital macroeconomic variables of any economy as they are strong propellant of economic growth. The need to control and monitoring government spending and the FDI so as to achieve a steady economic growth necessitated this study. The study seeks to determine the impact of government expenditure and FDI on the Nigeria economic growth. A multiple regression analysis was used to test the relationship between government expenditure (capital and recurrent expenditure) and FDI as the explanatory variables on GDP (proxy for economic growth) as the dependent variable. Our result revealed that the explanatory variables: CEXP, REXP and FDI had significant relationship with economic growth. However CEXP did not conform to expectation. Some recommendations such as a thorough and accountable management of capital and recurrent expenditures in Nigeria, adequate planning, an effective macroeconomic framework and conducive economic environment to encourage foreign direct investment is require

Empirical Analysis of Money Demand Stability in Nigeria

The main focus of this study is to identify the variables influencing the demand for money in Nigeria; and to ascertain the stability of money demand in Nigeria. Related theories and empirical researches in this area were reviewed in order to ensure the relevance of variables under study and possible expectation of their relationship with money - demand in Nigeria. Four explanatory variables were specified for this study based on theoretical underpinning. Stationarity test were conducted and all variables were stationary at first difference, with two cointegrating equations after using the Johansen Cointegration test. The error correction model (ECM) was rightly signed and revealed a recovery rate of 18 percent. It was also recommended among others that the monetary policy strategy of the CBN should be structured to deal with the growing challenges posed by financial innovations. The stability test revealed that M2 money demand in Nigeria is stable using both CUSUM and CUSUMSQ at 5 percent critical lines. Keywords: Money-Demand, Non-Bank Financial Institutions, Speculative demand for money, Liquidity, cointegration.

Stock Market Performance and Economic Growth in Nigeria: An Empirical Appraisal

This study is aimed at determining the role and contributions of the Nigerian stock market to national income in Nigeria from 1981 – 2012. This is necessitated by the concern as to whether a lean stock market like we have in Nigeria with an average of 240 quoted companies (within the period of study) with an average market capitalisation of N4 billion can significantly exact the much expected positive impact on total output. Four explanatory variables were specified for this study based on theoretical underpinning. Stationarity test were conducted using Augmented Dickey Fuller unit root test, while Johansen Cointegration test was used to estimate the long-run equilibrium relationship among the variables. The Granger causality test was conducted in order to establish causal relationship, while the model was estimated using the error correction model (ECM). Key words: Nigerian stock exchange, stock market performance, economic growth, capital formation, and cointegration