Impact of Monetary Policy on Exchange Rate in Nigeria: Bound Test and ARDL Approach

The aim of this study is to examine the relationship between monetary policy and exchange rate in Nigeria. The results of past empirical studies have not shown a clear direction about the nature of relationship between these variables in the country and these studies have failed to utilize the methodology in this work, which has created a gap in the literature. Data was collected from the Central Bank of Nigeria Statistical Bulletin from 1990– 2016 and various diagnostic tests such as Unit Roots and Bound Tests were carried out. Consequently, ARDL model was utilized to address the objective of this study. It was discovered in this study that credit reserve requirement and Treasury bill rate have a negative relationship with exchange rate. However, monetary policy rate and broad money supply have a positive relationship with exchange rate in the country. Furthermore, due to these important findings, this paper makes the following vital policy recommendations for the monetary authorities, policy makers, financial institutions regulators and future researchers.  Due to the high volatility in exchange rate in Nigeria currently, the monetary authorities should increase the credit reserve requirement of the commercial banks. Also, the Central bank should increase that rate at which it sells Treasury bill to the commercial banks. The multiplier effect of this policy will reduce the level of high powered money and consequently stabilize the exchange rat

Impact of Unemployment on Economic Growth in Nigeria: Bound Test and ARDL Approach

This study examined the impact of unemployment on economic growth in Nigeria. And based on the literature reviewed, the identified gaps were found in the scope, appropriate control variables and estimation techniques for the robustness of the findings. Data was sourced from the publications of World Bank-World Development Indicator, International Labour Organisation and Central Bank of Nigeria (CBN Statistical Bulletin) from 1980 – 2019 and various diagnostic tests such as Unit Roots and Bound Tests were carried out. Consequently, ARDL model was utilized to address the objective of this study. It was found out that unemployment had a positive and significant impact on economic growth both in the short run and in the long run. Furthermore, based on the findings, the paper recommended the introduction of programmes and policies that will promote enabling business environment to enable the teeming unemployed population to contribute to economic growth in Nigeria

Health, agricultural expenditure and economic growth in Nigeria: ARDL and ECM approach

This study examines the short run and long relationship between agricultural expenditure, health expenditure and economic growth in Nigeria. This study was motivated due to the lack of sufficient studies regarding this subject matter in recent times. Consequently, Data were collected from CBN Statistical Bulletin from 1981 to 2016. Relevant pre-estimation tests such as unit root and Bound tests were carried out because all the study variables were integrated of order zero and one. Estimated results from ARDL and ECM models established the existence of a short-run and long-run relationship between the variables of interest in Nigeria. While the error correction model reveals that about 19 percent of total disequilibrium due to external shock in the previous year is corrected in the current year. Therefore, it will take about five (5) years for the system to adjust back to its long-run equilibrium path. Results further showed that there is a significant positive relationship between agricultural expenditure and economic growth in Nigeria. However, there is a significant negative relationship between health expenditure and economic growth in the long run. Finally, policymakers in Nigeria should allocate substantial budget towards health and agricultural sectors in Nigeria. Health; Agriculture; Expenditure; Economic Growth; ARDL and ECMNiniejszy artykuł analizuje krótko- i długoterminowy związek między wydatkami na rolnictwo, wydatkami na zdrowie a wzrostem gospodarczym w Nigerii. Badanie będące przedmiotem artykułu było motywowane brakiem wystarczających badań dotyczących tego tematu w ostatnim czasie. W związku z tym dane zebrano z Biuletynu Statystycznego CBN od 1981 do 2016 r. Przeprowadzono odpowiednie testy wstępnego oszacowania, takie jak testy pierwiastkowe i powiązane, ponieważ wszystkie zmienne badawcze zostały zintegrowane od zera i jednego rzędu. Szacowane wyniki modeli ARDL i ECM wykazały istnienie krótko- i długoterminowej zależności między zmiennymi. Natomiast model korekcji błędów wykazuje, że około 19 procent całkowitej nierównowagi spowodowanej szokiem zewnętrznym w poprzednim roku jest korygowane w bieżącym roku. Dlatego też przywrócenie systemu do długoterminowej ścieżki równowagi powinno zająć około pięciu lat. Wyniki pokazały również, że istnieje znaczący pozytywny związek między wydatkami rolnymi a wzrostem gospodarczym w Nigerii. Jednak długoterminowo istnieje również znaczący negatywny związek między wydatkami na zdrowie a wzrostem gospodarczym. Wyniki badania, pozwalają na wysunięcie wniosku, że Nigeryjscy decydenci powinni przeznaczyć znaczny budżet na ochronę zdrowia i sektory rolnictwa. zdrowie; rolnictwo; wydatki; rozwój ekonomiczny; ARDL i EC

Foreign direct investment inflows and regulation in Nigeria: an empirical perspective

The aim of this study is to examine the long run equilibrium relationship between regulation and FDI inflows in Nigeria over the period of 1990 to 2016 which past studies have failed to explore. Consequently, the study utilized data from UNCTAD, World Bank database, CBN Statistical Bulletin and Cointegration, DOLS and Granger Causality approach was used to address the objective of this study. However, the major findings in this study are summarized as follows. Government effectiveness, rule of law and inflation rate have a significant positive relationship with FDI inflows in Nigeria in the long run, apart from regulation quality that is not significant. This implies that regulation is favorable to the inflows of cross border investment in the country. In addition, there is a unidirectional feedback relationship which runs from FDI inflows to regulation quality and one way feedback relationship runs from the rule of law to government effective-ness in the country. Finally, due to the findings that emerged from this study, the following recommendations are made for the policy makers, investors and future researchers in Nigeria that when attraction of FDI inflows are the target of the policy makers in the country, improving variables like rule of law, government effectiveness and regulation quality will induce the inflows of cross border investment accordingly in the long run. Also, the Nigerian government should be committed to the provision of a sound business environment in the form of good government regulations to ensure rapid inflows of FDI in the country

The role of agriculture in poverty reduction in Nigeria: an empirical perspective

Abstract In Nigeria, several advocacies have been raised in different fora over time that agriculture is capable of reducing poverty in the country. An attempt to empirically validate the above argument has generated a policy mix in the literature. Therefore, further empirical investigation about this subject matter becomes imperative. Consequently, the study utilized the DOLS and Granger Causality Approach to address the objective of this study. However, the principal findings that emerged in this study are as follows: in the long run, there is a significant positive relationship between the employment in agriculture and poverty level, inflation rate and poverty level have a negative relationship with each other. Meanwhile, agricultural output causes a significant reduction in the poverty level. Also, one-way feedback relationship runs from agricultural output to the poverty level in the country. Based on the findings that originated in this study, this paper makes the following recommendations for the policymakers, future researchers and all the stakeholders in the agricultural sector in Nigeria that agricultural output has the capacity to reduce poverty level in the country. This implies that when poverty reduction is the target of the policymakers in the country, manipulating agricultural output will induce the reduction in poverty level in the long run. Also the government should possess political goodwill to revamp agricultural sector