Impact of Fiscal Policy on Development Financing: Evidence from Nigeria

This study examined the relationship between fiscal policy and development financing in Nigeria and the extent to which the former effects the latter. The study employed public choice framework and the model is estimated with time-series data from 1981 to 2014, using the Johansen estimation technique. The findings revealed that there is a strong positive relationship between fiscal policy and development financing, real GDP per capital, consumer price index and capital expenditure respectively. The results further confirmed that more expenses were incurred funding recurrent than capital and this had taken its toll on development. The study recommended that government should increase revenue base so as to fund capital expenditure in order to achieve sustainable development while it is also necessary to reduce recurrent expenditures and domestic debt

Foreign Direct Investment and Financial Development in Economic Community of West African States

This paper examines the link between foreign direct investment and financial development with a view to ascertaining whether FDI is a substitute or complement to financial development in a sample of fifteen countries in ECOWAS from 1980-2014.  The study employed the two step system Generalized method of moment. The result of the study is mixed. Specifically, the findings reveal that the development of the financial sector in the West African sub-region is actually not aiding FDI inflows as it is evident from our analysis that financial development is not positively significantly correlated with FDI inflows into the region. However, the analysis of the effect of foreign direct investment on financial development indicates that FDI influences the domestic financial sector development positively and significantly in most of the ECOWAS countries. This indicates that FDI have been complementing financial sector development. Generally, the study submits that foreign direct investment and financial development can act as both substitute and complement in the ECOWAS regio

Non-Interest Income and Deposit Money Banks (DMBs) Performance in Nigeria

The review of the regulations guiding the activities of Deposit Money Banks (DMBs) in Nigeria affected the revenue generated by DMBs, forcing most banks to diversify their sources of revenue to non-interest income. Panel data technique was employed to examine the impact of non-interest income on DMBs performance in Nigeria from 2012 through 2019. The empirical finding revealed that noninterest income, capital adequacy ratio, and bank loan positively and significantly impact DMBs’ performance in Nigeria. The study recommends that DMBs delve into non-interest income activities as it appeared to improve the performance of DMBs in Nigeria, and the monetary authority should review the policy guiding the non-interest income activities of the DMBs at regular intervals.How to Cite:Yunusa, L. A., Arikewuyo, K. A., Olowofela, E. O. & Sanyaolu, W. A. (2022). Non-Interest Income and Deposit Money Banks (DMBs) Performance in Nigeria. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 31-42. https://doi.org/10.15408/sjie.v11i1.15469

Effect of Financial Innovation on Economic Growth: Evidence from African Countries

Financial innovation is a product of technology and the question whether financial innovation spurs economic growth is subject to level of technology in the financial sector of an economy as well as other factors. On this note, this study examines the impact of process financial innovation on economic growth in some selected African countries. The study used annual panel data obtained from the World Bank Development Indicator comprising of seventeen cross section countries covering the period of fifteen years from 2004 to 2018. Generalized Method of Moment (GMM) was employed to analyze the panel data system. The result shows that financial innovation has significant impact on economic growth of selected countries. Automated Teller Machine (ATM) which is a major measure of our process financial innovation has significant impact on economic growth. Number of Bank branches on the other hand has positive but insignificant impact on the economic growth. Financial innovative products such a domestic bank credit also contributes significantly to the economic growth of African countries. It is therefore recommended that policy makers should encourage establishment of more ATM terminals, increase the number of bank branches and improve the credit to private sector of the economy

Competition and ratchet hypothesis: How safe are manufacturing companies in Sub-Saharan Africa?

This study applied the conventional ratcheting notion that managers (agents) chose to restrict their performance because they anticipated that firms (principals) would respond to higher performance levels by raising targets or by cutting pay in a piece-rate labour environment. A cross-sectional panel model was developed to subject this baseline notion of ratcheting hypothesis to multi-period and ex-post competitive labour market environment, bearing in mind that there was information asymmetry to both parties. It was observed, as predicted by the theoretical model that there would be substantial ratchet effects in the absence of competition. However, when subjected to ex-post competition, the ratchet effects were reduced, regardless of whether market conditions favored the firms or the managers and thereby making the manufacturing companies in Sub-Saharan Africa safer than when they were exposed to ratcheting in its conventional form

Financial inclusion and sustainable development in Nigeria

Aim/purpose – Financial inclusion is a catalyst for achieving sustainable development. This study attempts to evaluate impact of financial inclusion on sustainable development. Design/methodology/approach – Both Error Correction Model (ECM) and Fully Modified Ordinary Least Square (FMOLS) were used to ascertain the short-run and long-run relationship respectively among the variables which covers the period from 2001 to 2016, as data for HDI (Human Development Index) were available for Nigeria from 2001 through 2016 only. Findings – The result of the analysis indicated that in the short-run there is short-run causality running from a number of commercial bank branches, demand deposit from the rural areas, loan to rural areas to HDI. The long-run result revealed that the explanatory variables consisting of loan to rural areas, number of commercial bank branches and demand deposit from the rural areas all have positive significant impact on HDI in Nigeria. The overall result revealed that financial inclusion has impact on sustainable development in Nigeria. Research implications/limitations – The study recommends that banks and monetary authorities should develop new product and services that will attract savings from the rural dwellers because of the level of significance of their deposit to the development of the country. All the more so as commercial banks should also ensure that the rural dwellers are provided with more bank branches, most especially, in areas where there are few or no banks. Credit facilities should also be provided to the people at an affordable rate as this will uplift the level of inclusion and reduce the level of exclusion in the country which will improve the sustainable development in the country. Originality/value/contribution – Empirically, the study attempted to investigate the impact of financial inclusion on sustainable development in Nigeria. The results of the study suggest that government should continue its effort in the area of poverty alleviation by embracing financial inclusion via a vis financial institutions introducing new financial product and services at lower cost that will cater for the disadvantaged group in the society

Signifikan : jurnal ilmu ekonomi volume 11 (1) 2022

ii, 200 hlm, 29,9 x 20,9 c