Foreign Portfolio Investment-Economic Growth Nexus in Nigeria: Co Integration and Granger Causality Analyses

The study employed Wald causality methodology to uncover the direction of causal relationship between foreign portfolio investment and economic growth in Nigeria between 1986 and 2013. The empirical results suggest that foreign portfolio investment and economic growths are positively cointegrated indicating a stable long run equilibrium relationship. Further, the findings revealed bidirectional causality between foreign portfolio investment and economic growth and the complementary role of domestic savings and interest rate in growth. Keywords: Causality, Foreign Portfolio Investment, Economic Growt

The ECOWAS Common External Tariff (CET) and Macroeconomic Performance in Nigeria

This study aims at providing empirical relationship between ECOWAS Common External Tariff and macroeconomic variables in Nigeria. The study made use of quarterly time series data between 2005:01 to 2012:04. The vector error correction model (VECM) model was used to measure the impact of CET on macroeconomic variables in Nigeria. The results revealed that common external tariff (ET) explained (0.006%) in the variance of domestic output (DO) in the 2nd period and rose sharply to (0.02%) in the 4th period. The effect of common external tariff (ET) on the explained variance of domestic output (DO) declined from (0.07%) to (0.08%) at both 6th and 7thperiod respectively. However, common external tariff effect (ET) on the variance of domestic output (DO) decline to (0.08%) at the 8th periods and stabilized at (0.11%) until the 15th period. The study observed that ECOWAS common external tariff (ET) have a positive but minimal effect on macroeconomic performance in Nigeria. Keywords: Common External Tariff, Domestic Output, government expenditure, Balance of Trad

Foreign Portfolio Investment, Investment Policy and Economic Growth in Nigeria

The study examined the effect of investment policy of 1995 on the relationship between foreign portfolio investment and economic growth in Nigeria. This was with a view to explore the nexus between the investment policy, foreign portfolio investment and economic growth in Nigeria.Secondary data were used in this study. Annual time-series data for the period 1986 to 2013 on foreign portfolio investment and maximum lending rate were obtained from Central Bank of Nigeria (CBN) Statistical Bulletin, while data on variables such as GDP growth rate and gross domestic savings were obtained from World Development Indicators (WDI) database, published by the World Bank. Data collected were analyzed with both descriptive statistics and econometric techniques. Time series properties of the variables were examined using both Augmented Dickey Fuller and Phillip Peron tests. Cointegration properties of the variables were also examined. Vector Auto-Regressive technique supported by Variance Decomposition and Impulse Response analysis were employed to empirically determine the relationship between foreign portfolio investment and economic growth in Nigeria. The study revealed that though the investment policies of 1995 in itself had not led to economic growth but it had succeeded in attracting more foreign portfolio investment into the economic and that it aided the growth of the economy through these foreign portfolio investments

Feasible Environmental Kuznets and Institutional Quality in North and Southern African Sub-regions

One of the goals of Africa as a developing continent is to grow and also reduce environmental pollution. Most studies investigate the presence of inverted U-shaped environmental Kuznets curve (EKC) using pollutants such as carbon dioxide (CO2), the use of point pollutants such as suspended particulate matter (SPM) is not so popular in literature. Similarly, most studies that assess the role of institutions in the income-pollution nexus do not investigate their capability in achieving feasible turning on the EKC. Focusing on three pollutants, namely: CO2, nitrogen oxide (N2O) and SPM, this study employs system generalised method of moments to assess the role of institutions in two sub-regions (North and Southern Africa) in attaining EKC turning points. Results, among others, indicate that the both sub-regions did not attain a level of average income capable of turning EKC round for CO2 and N2O but do for SPM. It is also revealed that Southern Africa attained EKC faster than North Africa. It is therefore recommended that for the purpose of achieving the goal of green growth, the institutional quality should be strengthened in the two Africa sub-regions, particularly in Southern Africa

Interactive Effects of Exchange Rate Volatility and Foreign Capital Inflows on Economic Growth in Nigeria

Various literature have attested to the vital roles of foreign capital inflow in bridging the savingsinvestment gaps in the developing countries in other to bring about the so much desired development. The impediment of exchange rate volatility (EXRV) on sourcing for this much desired foreign capital is also notable. However it was observed in literature that the negative effect of EXRV could be mitigated by the level of financial development prevalent in the country. This study investigates the interaction of financial development with exchange rate volatility on one hand and of financial development with capital inflows on the other hand. The result of our GMM estimation indicates significant positive effect of FDI, FD, interaction of FDI with FD and interaction of EXRV with FD on GDP. However, remittance, lag of EXRV and interaction of remittance with FD has significant negative impact on GDP. This study posits that government in its efforts to diversify the economy for future growth should promote infrastructure and adequate financial development that will attract FDI to agric and agro allied industries and diversify remittances from consumption into investmen

Income inequality, unemployment, and poverty in Nigeria: a vector autoregressive approach

The main features of poverty are low levels of consumption and income, a fact-of-life in most African countries. This paper analyzes the fundamental trends of per capita income, government capital expenditure, the human development index, and the rate of unemployment in the Nigeria. A vector autoregressive model finds that: A reduced unemployment rate improves human development and consequently reduces poverty. As growth in public capital expenditure rises, unemployment falls and the human development index improves. Therefore, infrastructure-based policies, which initially reduce unemployment, will also improve the living conditions of Nigerians in the end.Poverty, Unemployment, Standard of living, Income inequality, JEL Code: O55,

The Impact of Climate Change on Composition of Agricultural Output in Nigeria

Abstract This study examined the impact of climate change on the composition of agricultural output in Nigeria for the period 1981 to 2011. Using an Ordinary Least square (OLS) estimation technique, the study observed that with exception to fishery production, climate change had a significant and positive impact on the composition of agricultural output in Nigeria. This finding is in contrast to a priori expectation and also in contrast to the findings obtained by previous studies. Thus, the study recommends the need for further study on this issue to verify the claims of this and also by using other indicators of climate change