71 research outputs found
Foreign aid, human capital and economic growth nexus: Evidence from Nigeria
This study investigates the link between aid and human capital in promoting economic growth of Nigeria. The study used two models; the first model was used to test the validity of the medicine model in Nigeria; while the extended model was used to investigate the effect of aid and human capital shocks on growth using Engle-Granger and Vector Error Correction Model (VECM) estimation techniques respectively. The findings from the first model suggest that persistent increase in foreign aid flows beyond a particular point (the optimal point) may adversely affect growth thus confirming the proposition of the Medicine Model. Evidence from the study’s extended model indicates that growth in Nigeria is sensitive to human capital shock via education while the response from aid shock is trivial in the long run. The mechanism through which aid impacts economies is influenced by many heterogeneous factors, notably; the role played by the recipient governments is often not considered. Our implication from the obtained results is that government expenditures on education with additional inflows of aid can promote economic growth in Nigeria. However, there is also an indication that attainment of economic growth might be challenging for this aid-dependent country
Trade openness channels and labour market performance: evidence from Nigeria
The implications of trade on developing economies have generated
substantial debates with most studies focussed on “openness in the policy”.
Hence, the purpose of this study is to focus on “openness in practice”.
Design/methodology/approach
This study uses two models and employed the vector error correction model
and structural vector autoregression, first, to examine the sectoral effects;
second, to investigate the efficacy of neoclassical and new trade theories; and
third, to analyse the effect of trade openness shock on Nigerian labour market
performance.
Findings
The results of the first model showed that trade openness has an adverse
effect on employment and wages in both the agriculture and manufacturing
sectors. Likewise, the study concludes that the new trade theory explains
trade's behaviour on employment and wages in Nigeria. The second model
showed that the effect of error shock from trade openness affected wages
more than employment.
Research limitations/implications
The study ignores the distributional effects due to unavailability of data.
Practical implications
The study suggested, amongst others, the need for policies mix on the labour
market via a coherent set of initiatives in other to increase the competitiveness
of Nigeria in the international market.
Originality/value
Most studies focussed on openness in policy through the channels identified
in the literature. However, this study investigates these channels in “openness
in practice” and investigates trade theories' efficacy on manufacturing and
agricultural sectors in Nigeria, which has been neglected in the literature
The determinants of undergraduate accounting students’ early participation in professional examinations
The quest for undergraduate Accounting students to obtain a professional
certification early is being propagandised to boost chances upon graduation in securing
well-paying job and enhancing a career path in Accounting. The study provides evidence
on the idiosyncratic differences among students who are undergoing a professional
programme while acquiring a first degree and students who only focused on the first
degree. The study participants include 107 registered second-year Accounting students
studying in Nigeria. Measures of personal characteristics, parental characteristics academic
characteristic, prior academic performance, activities in leisure time, reading
habits and current academic performance were used to ascertain the differences. The
Independent Sample T-test and Binary logistics regression were used to analyse the data
obtained from the survey, also copies of questionnaires were administered to the respondents. Our findings indicate that mother’s field of qualification in the sciences,
Grade point Average (GPA) before professional examinations and Cumulative Grade Point
Average (CGPA) have a positive and significant influence on participation in the professional
certification programme. We conclude that students’ current academic achievements
instil confidence to undergo more academic rigour
MPLICATIONS OF HUMAN CAPITAL FORMATION ON OUTPUT AND EMPLOYMENT: EVIDENCE FROM NIGERIA
Many studies have documented that human capital formation is important to boost output both empirically and theoretically. However, studies on the implications of human capital on employment are still scanty, especially for developing countries. Against this background, the study investigates the shock and long-run implications of government financing on education and health on output and employment in Nigeria using a vector error correction model (VECM). The results show that the forecasting error shocks from government expenditure on health and education affect output more than employment along the 10-horizon period. Evidence from the long-run output model showed that government expenditure on education and human capital index is statistically significant, while government expenditure on health is not statistically significant. Government expenditure on education and the human capital index has a positive relationship with output. For the long-run employment model, government expenditure on health and education is statistically significant; while investment in human capital is not significant with employment. Government expenditure on education has a negative relationship with employment, while a positive relationship exists between government expenditure on health and employment. The result implies that human capital indicators in terms of quantity and quality do not contribute positively and significantly to employment growth in Nigeria. The study recommends the need to encourage self-reliance through entrepreneurship training to bolster employment opportunities in the long run
HUMAN CAPITAL CHANNELS AND PRODUCTIVITY GROWTH: EVIDENCE FROM NIGERIA
ABSTRACT. Numerous studies have examined the
relationship between human capital and
productivity. However, the implications of human
capital channels - the ‘basic channel’ and ‘advanced
channel’ - were discounted from most of the
empirical studies in Africa. This study, therefore,
uses Vector Error Correction Model to examine
the joint short- and long-run causality, as well as
long-run behaviour of human capital channels on
productivity within the period from 1980 to 2017.
Evidence from the joint short- and long-run
causality shows that there is no long-run one while
joint short-run causality was observed in the basic
channel, in the advanced channel there is both joint
short- and long-run causality. For the long-run
equation, primary school enrollment/secondary
school enrollments have insignificant effect on
productivity growth while tertiary institution
enrollment and government expenditure on
education have a positive effect on productivity
growth. However, contribution of both effects is
less than one per cent, thus showing low
responsiveness of the inputs on productivity. The
implications from this result are that human capital
formation through education and investment in
research and development have not promoted
productivity in Nigeria. Investment in research and
development is imperative to promote productivity
and enhance the skills needed to adapt and diffuse
new technologies
The credit channels of monetary policy transmission: implications on output and employment in Nigeria
There has been an increasing trend in the unemployment rate despite the growth rate witnessed. Monetary policy is presumed as one of the ways to improve the situation. Likewise, the relationship between monetary policy and employment has generated controversial debates in the literature. Though its connection has been extensively studied, however, the implications of monetary policy in respect to time frame perspectives on employment and output have not been widely addressed in the literature. This study provides evidence on shock effects, long and short-run impacts of monetary policy transmission through the credit channels on output and employment in Nigeria within the period of 1981 to 2016 using the Structural Vector Autoregression and Autoregressive distributed lags (ARDL). Evidence from the forecast error shock showed that variations in monetary policy indicators affect output more than employment in the first two periods; however, it affects employment more afterwards. The ARDL results show no evidence of co-integration when output is used as the dependent variable; conversely, cointegration exists when employment is used as the dependent variable. The monetary policy indicators: money supply, bank deposit liability and interest rate are statistically and economically significant with employment in the long run. In the short run, money supply and interest rate are economically and statistically significant. The findings revealed that the Nigerian government can maximize the long-run benefits of monetary policy through the credit channels on employment. Hence, there is a need for policymakers to look beyond short-run gain and promote long-run employment via monetary policy among others
Financial stability and entrepreneurship development in sub-Sahara Africa: Implications for sustainable development goals
This study examined the relationship between financial stability and
entrepreneurship development in Sub-Sahara Africa, thereby scaling up the
achievement of SDGs 1, 5, 8, 9, 10 and 12. The study made use of pooled data from
24 sub-Sahara Africa countries covering the period from 2004 to 2017. The method
of analysis utilised is the pooled ordinary least squares (OLS) and random effects
techniques. The findings revealed that financial stability (which measures the
financial strength of the banks, real economic stability and the level of financial
market development in the region) have a significant positive effect on entrepreneurship development at one per cent (1 per cent) significance level in the study
period. The findings of the study suggest that stability in the financial environment
facilitates the provision of credit facilities for entrepreneurship and promotion of
new business start-up in the study area. The result also shows that East African
countries make a significant positive contribution to entrepreneurship development
in terms of responsiveness to changes in financial stability, governance, strong
institutions, economic development and human capital development than other
regions in the continen
Petroleum subsidy withdrawal, fuel price hikes and the Nigerian Economy
The study investigated petroleum subsidy withdrawal, fuel price hikes and the Nigerian Economy. The purpose of the study was to determine the extent to which the removals of petroleum subsidies stimulate hikes in fuel prices and increases in the prices of products of other sectors in the Nigerian economy. It employed input-output model to determine the value added per sector from the computed table of flow of goods. Subsequently, the impacts of reductions in petroleum subsidies (10%, 20%, 30%, 40% and 50%) on the prices of products from the other sectors were computed. Results showed that reduction in petroleum subsidies stimulate increases in prices of petroleum products and such increases trigger increases in transport fares; increases in transport fares subsequently lead to increases in prices of other products owing to the degree of interdependency among the various sectors. The need for policy makers to be mindful of the economic implications of subsidy removal was suggested, among other
Monetary Policy Channels and Agricultural Performance: Evidence from Nigeria
The implications of monetary policy on agricultural performance have not been given adequate attention in literature to date, especially in connection with employment and export in the agricultural sector. Determining the right channels of monetary policy can help to achieve sustainable growth in developing economies. This study examines the impact of monetary policy channels on agricultural performance in Nigeria using structural vector autoregression (SVAR) and dynamic ordinary least squares (DOLS). The study uses output employment and export as metrics for agricultural performance, and the channels of monetary policy considered are credit, interest rate, money and exchange rate. The SVAR variance decomposition findings show that the forecast error shocks of monetary policy channels affect agricultural performance. Likewise, the long-run equations from the DOLS show that output has a positive relationship with money supply, a negative relationship between employment and interest rate, and a negative relationship between exchange rate and export. Based on the findings, the study suggests that the Nigerian government should look beyond the primary objective of stabilizing the economy via money supply and interest rate and consider the secondary benefits of bolstering output and employment in the agricultural sector
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