Stock Market Performance and Sustainable Economic Growth in Nigeria: A Bounds Testing Co-integration Approach

The study examined the relationship between stock market performance and economic growth in Nigeria. It utilized the bounds testing co-integration procedure also known as autoregressive distributed lag estimation procedure. The empirical model combined key stock market indicators and some traditional macroeconomic variables to estimate the hypothesized relationship in the study. It found that in the long-run, overall output in the Nigerian economy is less sensitive to changes in stock market capitalization as well as the average dividend yield thereby casting doubt on the ability of the Nigerian stock market in its present level of development to serve as a barometer for measuring or predicting the overall health of the Nigerian economy as well as its direction over the long-run horizon. The other major finding in the study is that the long-run growth of the Nigerian economy is highly sensitive to marginal variations in interest rate which is suggestive that macroeconomic variables in the country are at present more useful in shaping the long-run direction of the Nigerian economy

Fiscal Federalism in Nigeria: Theory and Practice

Fiscal federalism which mirrors the amount of fiscal autonomy and responsibility accorded to subnational government has been an important subject in the policy equation of many developing, transition, and developed countries. This paper, therefore, examined the evolution, structure, and practices of fiscal federalism in Nigeria. In achieving this, the paper adopted both descriptive and analytical methods by relying on secondary sources for data gathering. The paper revealed that Nigeria has not operated as a true federation since it adopted a federal constitution. Fiscal responsibility and taxing powers still remain considerably centralized. The practice of fiscal federalism in Nigeria has been inhibited by several factors which include; the dominance of the federal government in the revenue sharing, the protracted period of interregnum rule of the military, and over-reliance on the revenue from the Federation account. The paper therefore concluded that the federal government should devolve some of its tax powers to state governments in order to stimulate healthy fiscal independence and competition among states

Fiscal Decentralization and Economic Growth in Nigeria: A Multivariate Co-Integration Approach

Abstract. This paper examines the long run and causal relationship between fiscal decentralization and economic growth in Nigeria for the period 1970 to 2012 using time series data. Results from a multivariate VAR model provide evidence of long run relationship between fiscal decentralization and economic growth in Nigeria. The three measures of fiscal decentralization have a positive and significant relationship with economic growth, Granger Causality test reveals long run unidirectional link running from fiscal decentralization to economic growth. The study recommends the need for government to urgently address the constitutional issue of fiscal powers among the three tiers of government to further strengthen the fiscal base of the state and local governments and increase further the level of fiscal decentralization

ECONOMETRIC ANALYSIS OF EXPORTS AND ECONOMIC GROWTH IN NIGERIA

There is no consensus in the empirical literature on the causal links between exports and economic growth. This paper therefore examines the applicability of the Export-Led Growth hypothesis for Nigeria using annual secondary time series data from 1970-2010. The estimation results obtained from the cointegration test and Granger Causality test within the framework of a VAR model did not support the Export-Led Growth hypothesis for Nigeria. The paper concludes that government must diversify the product base of the economy, promote non-oil exports, and build up an efficient service infrastructure to drive private domestic and foreign investment