Analysis of corruption and economic growth in Nigeria

This paper studied corruption and the Nigerian economic growth. In doing this, the study looked at historical overview of corruption in Nigeria and conceptual issues were also discussed. It also reviewed the causes and effects of corruption, without leaving out the dynamics of corruption. Also, the study looked at the relationship between corruption and the Nigerian economic growth. However, the study introduces a new perspective on the role of corruption in economic growth and provides quantitative estimates of the impact of corruption on the economic growth in Nigeria as well as their causal relationship. This study used the ordinary least squares (OLS) to determine the relationship between corruption and economy growth. The study applied the granger causality method to measure the causal relationship that exists between corruption and the gross domestic product (GDP). The results revealed that corruption impairs and impacts economic growth. It is on this basis, we draw our conclusion and suggest that Private Anti-Corruption Initiatives, Public anti-corruption initiatives andPublic education campaign/programmes should be strengthened and motivated in to address the cause of corruption rather than its effects. Key Words: Growth, Granger Causality, Corruption, Nigeria, Economi

Is there any relationship between monetary policy tools and external credit-growth nexus in Nigeria?

The Nigerian economy attracts abundance of foreign capital inflows and credit supply; hence, an adverse external credit shock might lead to a large decrease of external inflows due to global credit tightening, which may leave the domestic economy in deep recession. In this case, domestic monetary policy tools should be preferred to mitigate the external adverse effect on the domestic economy and stimulate investment. As a result, an important issue of concern in this study is how can the use of monetary policy tools mitigate the effect of external credit shocks on economic growth in Nigeria? In answering this question, this study attempted to assess the influence of monetary policy tools on external credit and economic growth nexus in Nigeria, using annual data covering 36 years for the period 1980–2015. The study adopted the Cobb–Douglas production function and estimated a specified model using autoregressive distributed lag cointegration approach. The study found out that cash reserve requirement, which is credit policy easing, is significant in growing the Nigerian economy, as compared to monetary policy rate. The implication of this is that, if credit policy easing is properly implemented, it could be efficient in offsetting adverse external credit shocks

Financial Deepening and Agricultural Labour Productivity in ECOWAS: A Threshold Analysis

This study examines the threshold effect of financial deepening on agricultural labour productivity using a panel of 15 Economic Community of West African States (ECOWAS). We adopt a battery of econometric models including the Hansen threshold model and a polynomial model within a Feasible Generalised Least Square (FGLS) setting. The results reveal that there exists no threshold effect of financial deepening on agricultural labour productivity. Results further show that financial deepening is not a significant driver of agricultural labour productivity in ECOWAS but life expectancy at birth and agricultural gross fixed capital formation per worker are significant drivers. This implies that financial depth is not a potent strategy in boosting agricultural labour productivity. As a result, paying attention to the significant determinants is rather recommended. Keywords: Financial Deepening, Agricultural Labour Productivity, Hansen Threshold model, Polynomial Model, Feasible Generalised Least Square, ECOWA

Does intermediate tariff bode well for trade integration in ECOWAS?

This paper analyses the impact of intermediate tariffs on intraregional intermediate exports within the Economic Community of West African States (ECOWAS) from 2000 to 2015. This is in order to investigate whether or not the levels of intermediate tariffs bode well for trade integration in ECOWAS. Using the Heckman Two-step technique, the empirical estimates reveal that the similarities in GDP and the presence of the West African Economic and Monetary Union (WAEMU), among others, are highly significant determinants of intraregional intermediate exports in ECOWAS. Contrarily, the quality of institution and the levels of intermediate tariffs are not important contributors to intraregional exports of intermediates. As the continent prepares towards the implementation of the African Continental Free Trade Area and considers regional value chains quintessential to development, policy makers should be informed of the unsupportive levels of intermediate tariffs in ECOWAS- a regional economic community that accounts for about thirty percent of the African population. Trade policies targeted at lowering intermediate tariffs within ECOWAS are called for

Macroeconomic policies and agricultural development in developing countries: lessons from emerging economies

This paper brings to the fore the macroeconomic policy issues in emerging and developing countries with respect to agricultural development. By exploring theoretical and empirical evidences, it describes the macroeconomic tools that have been deployed by various governments of selected emerging and developing nations especially between 2000 and 2010. The major findings are that emerging countries like Brazil, China and India have systematically manipulated macroeconomic tools in either jumpstarting or fast-tracking their economic development. It recommends that in order to foster development, developing countries need to learn to manipulate macroeconomic policies relating to taxation, trade, government expenditure and exchange rate

The Role of ECOWAS in Fostering Nigeria’s Cocoa Beans Value Chain

Despite the huge potentials of the cocoa beans value chain in Nigeria, the performance of this sector is hampered, inter alia, by low productivity which is not unconnected to low value addition along the product’s value chain. The regional platforms put in place by the Economic Community of West African States are supposed to be able to proffer solutions to some of the challenges of this sector. In economic literature, inter-linkages amongst related or same industries are important for value addition which in turn is essential for maximising income gains and improving general living standards accruing from engaging in production and trade. The New Trade Theory explicates how intra-industry/intraregional trade can give rise to the fragmentation of production processes that characterise value chains and how intra-regional trade can foster the needed value addition in a value chain. This current study is motivated by the need to assess the extent to which the Economic Community of West African States (ECOWAS) has fostered intraregional cocoa beans value chain between Nigeria and other members of ECOWAS by creating the necessary forward and backward linkages between actors in the cocoa beans value chain in Nigeria and the rest of ECOWAS. Findings from descriptive statistics seem to suggest a weak performance on the part of ECOWAS thus calling for the need for intensified regional efforts to sufficiently bolster the performance of Nigeria’s cocoa beans value chain