Global Financial and Macroeconomic Fluctuations: Implications for African Economic Development

In the light of dampening effects of the global financial melt-down, the paper examines the trends in financial flows, particularly foreign direct investment (FDI) and the possible effects of the global financial crisis and macroeconomic fluctuations on economic development in Africa. The paper employs simple panel data approach which links panel data methodology that allows for individual heterogeneity, while the method of estimation is the Fixed and Random Effects regression. The method of panel VAR is also used in the paper with a view to capturing the dynamic effects of FDI inflows for policy analysis using the impulse response functions. The number of countries (27) included in the paper and the period of estimation, 1987-2007, are informed by data availability. With some suggestions on the direction of policy to stimulate increased financial flows, the paper opines that there is the need for comparative dynamics of African economies in order to return to the path of sustainable growth and development

Evaluation of QSAR and ligand enzyme docking for the identification of ABCB1 substrates

P-glycoprotein (P-gp) is an efflux pump that belongs to ATP-binding cassette (ABC) transporter family embedded in the membrane bilayer. P-gp is a polyspecific protein that has demonstrated its function as a transporter of hydrophobic drugs as well as transporting lipids, steroids and metabolic products. Its role in multidrug resistance (MDR) and pharmacokinetic profile of clinically important drug molecules has been widely recognised. In this study, QSAR and enzyme-ligand docking methods were explored in order to classify substrates and non-substrates of P-glycoprotein. A set of 123 compounds designated as substrates (54) or non-substrates (69) by Matsson et al., 2009 was used for the investigation. For QSAR studies, molecular descriptors were calculated using ACD labs/LogD Suite and MOE (CCG Inc.). P-glycoprotein structures available in the Protein data bank were used for docking studies and determination of binding scores using MOE software. Binding sites were defined using co-crystallised ligand structures. Three classification algorithms which included classification and regression trees, boosted trees and support vector machine were examined. Models were developed using a training set of 98 compounds and were validated using the remaining compounds as the external test set. A model generated using BT was identified as the best of three models, with a prediction accuracy of 88%, Mathews correlation coefficient of 0.77 and Youden’s J index of 0.80 for the test set. Inclusion of various docking scores for different binding sites improved the models only marginally

Distribution of Radionuclide Concentration with Proximity to the Lagoon in Lagos State, Southwestern Nigeria

The radioactivity of Lagos State in the Southwestern Nigeria was determined using an HpGe based, low level passive gamma-counting system. The main radinouclides analyzed in the samples were the progenies of 238U and 232Th. The other two isotopes were the naturally occurring 40K and the anthropogenic 137Cs. The results of the study showed that the average specific activity concentration of 238U, 232Th and 40K have consistent values with published data for many other countries in the world. The presence of the fission product 137Cs could be traced to the fallout of the nuclear tests in the Sahara desert and probably, some effects of the more recent nuclear reactor accident at Chernobyl in 1986. Keyword: radionuclide, concentration, radioactivity, contamination, soi

HEAVY METALS IN THE MYONEMATIC, HEPATIC AND RENAL TISSUES OF THE AFRICAN CAT FISH (Clarias gariepinus) FROM OGBA RIVER, BENIN CITY, NIGERIA.

The concentrations of heavy metals (Pb, Cd, Zn, Cu, Cr and As) in the myonematic, hepatic and renal tissues of the African catfish (Clarias gariepinus) from Ogba river, Benin City, Nigeria, were determined using a Unicam 929 series atomic absorption spectrophotometer. The concentrations of the aforementioned metals were also determined in water. The mean concentration of Pb ranged from 0.19mg/kg (muscle) to 0.39mg/kg (liver) while the mean concentration of Cd ranged from 0.03mg/kg (muscle) to 0.09mg/kg (liver). The mean concentration of Zn ranged from 0.09mg/kg( muscle) to 0.33mg/kg (liver) while the mean concentration of Cu ranged from 0.23mg/kg (muscle) to 0.76mg/kg(liver). The mean concentration of Cr ranged from 0.19mg/kg (muscle) to 0.41mg/kg (liver) while the mean concentration of As ranged from 0.36mg/kg (kidney) to 0.54mg/kg (muscle). The mean concentrations of the heavy metals in water were Pb(0.09mg/l), Cd(0.04mg/l), Zn(0.01mg/l), Cu(0.53mg/l), Cr(0.38mg/l) and As(0.59mg/l). With the exception of Cu, the mean concentrations of the heavy metals in water were generally above the World Health Organization (WHO) maximum allowable limit for the respective metals in drinking water implying that water from the river is unfit for human consumption owing to heavy metal contamination. The mean concentrations of Cr and As exceeded the WHO maximum allowable limits for fish food. The direct implication of this finding is that people who consume fish from the river are liable to potential health hazards resulting from Cr and As contamination.Â

Impact of Credit Demand on the Productivity of Rice Farmers in South West Nigeria

Employing cross-sectional data from 360 rice farmers selected from three states in South West Nigeria, the study analyzes the impact of credit demand on the productivity of rice farmers. An Endogenous Switching Regression Model (ESRM) that accounts for both heterogeneity and sample selection biases were used to estimate the impact of credit demand on rice productivity in South West Nigeria. In addition, a Tobit regression model was employed to measure the level of participation of rice farmers in the credit market. The result of the first stage (probit model) of the ESRM revealed that household assets, access to service, climate variables, regional variables, and transaction cost are statistically significant in influencing farmers’ credit demand decision. The results of the second stage of the ESRM indicate factors such as household assets and access to service were statistically significant in explaining variations in rice productivity among participants and non-participants in the credit market. Furthermore, the results of the Tobit model showed that the farmers’ location income from rice farming experience, interest rate, and distance to the source of credit are statistically significant determinants of the amount of credit received. These findings suggest that facilitating farmers’ access to credit will improve rice productivity. Therefore, it is imperative for government and development partner to work together in order to improve the conditions for suitable agricultural credit access to rice farmers, especially a review of interest rates. A necessary addition should be developed to the assistance already being provided under Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) in the form of loan guarantees and other risk-sharing incentives, such as a regulatory environment that supports the modern contractual obligations that are characteristic of well-functioning agricultural financing. This would not only contribute to the intensification of rice production in Nigeria to meet its increasing rice demand, but also improve rice farmers’ productivity and their households’ incomes

RESOLUTION OF SEISMIC INTERPRETATION ANOMALIES THROUGH THE SPECTRAL RATIO TIME DEPENDENT METHOD.

Interpretation of seismic results from a complex geological formation can be very difficult both on-field and off-field. The spectra ratio (SR) time-dependent method was derived using established geological principles. The spectral amplitude was analyzed numerically to affirm the reliability of the method on field operations. It was observed that the SR time-dependent method could initiate a natural correction to the attenuated seismic amplitude at each given interval during a seismic operation. The multi-layer implementation of the adopted method showed great success with the most accurate result at n = 0.1 for the fourth term on a newly-propounded volumetric table. Most volumetric results from the Niger- Delta showed correspondence with the volumetric analysis of the fourth term. One of the on-field volumetric results was obtained in the third term. The derivation of the volumetric table is to further enhance more accurate exploration using the reflective seismic technique

EXCHANGE RATE FLUCTUATIONS AND MACROECONOMIC PERFORMANCE IN SUB-SAHARAN AFRICA: A DYNAMIC PANEL COINTEGRATION ANALYSIS

In the light of the widespread effects of the recent global financial crisis on exchange rate and other macroeconomic developments, this paper investigates the implications of exchange rate fluctuations on output and other critical determining factors of exchange rates. We use Panel data set containing 40 countries from Sub-Saharan Africa (SSA) over a period of 13 years: 1995-2007. In the paper, we employ the dynamic generalized methods of moments (GMM) panel data framework using the xtabond2 Difference/ System GMM. We also examine the panel co-integration properties of the variables in order to establish long-run relationship between exchange rate and other macroeconomic variables in the SSA countries. The Panel Granger Causality test confirms the bilateral relationships between some variables in the model. Though the results of the study are tentative, in view of the many assumptions underlying the methods used, they reveal their potency to determine exchange rate (EER), a long-run relationship with variables of the model and bidirectional relationships

FOREIGN DIRECT INVESTMENT AND ECONOMIC DEVELOPMENT IN AFRICA

Africa unlike other developing regions of the world has experienced declining flows of foreign direct investment (FDI).The flow of FDI is expected to result into gradual reduction in reliance on external borrowed capital and acceleration of economic development. The study examined the declining flow of FDI to the African regions as well as the impact that it has had on economic development of the region, using the proxies of Income per capita, Life expectancy and Education indices. The study made use of pooled data from thirty nine African countries within the period 1993 and 2012.The method of analysis utilized for the study was the fixed effect least-square dummy variable model, employed to estimate the impact of foreign direct investment on economic development for the selected host African countries. The study finds that foreign direct investment is statistically significant in relation to economic development for host African countries. It is therefore recommended that the governments of host countries should consider closely the sectors that FDI flows into, encourage investment domestically in such sectors such that dependence on external financial flows could be reduced, resulting in sustained increases in income, literacy level and hence improved life expectancy which are expected to result into sustained economic development

The Disappointing Performance of Foreign Direct Investment in Industrial Development in Sub-Saharan African Countries

The Sub-Saharan African (SSA) region compared to other developing regions has been the most vulnerable as regards foreign capital inflow. The flow of foreign direct investment (FDI) is expected to result into advanced managerial and technological capacities and acceleration of industrial development. The study examined how the flow of FDI to the SSA region has impacted the industrial development of the region, using the proxy of industry value added growth. The study made use of pooled data from thirty three SSA countries within the period 1993 and 2012. The method of analysis utilized for the study was the fixed effect least-square dummy variable model, employed to estimate the impact of FDI on industrial development for the selected host countries. The study finds that FDI is statistically significant in relation to industrial development for host SSA countries; but it is disappointing that the expected desired features of industrial development, like increased manufacturing outputs, reduction in high level of import and manufactured goods; etc., have not been realized. It is therefore recommended that the governments of host countries should put policies in place to encourage development of industries domestically, to enhance sustained industrial development, such that dependence on external financial assistance and borrowing could be reduced, resulting in sustained increases in non-oil export earnings, domestic income, savings, investment, technology, and hence improved living standard

Characterization of hydrocarbon reservoir by pore fluid and lithology using elastic parameters in an x field, Niger Delta, Nigeria

Quantitative rock physics analysis was carried out to determine the lithology and pore fluid of a reservoir in the Niger Delta. Density, compressional wave velocity and shear wave velocity logs were used as input to calculate elastic parameters such as velocity ratio, Poisson’s ratio, and Bulk Modulus, after estimating the hydrocarbon reservoir in the X field. The calculated velocity ratio log was used to differentiate between sand, sandstone and shale. Poisson’s ratio and velocity ratio were used delineate pore fluid content; gas sand, oil sand and sandstone formation from cross plot analysis. The reservoir in the field lies ranges from 9050 - 9426.5ft, (2760.25 – 2874.93m), this confirm what is obtained in the Niger Delta Basin. The Net Pay zones show an economical viable reservoir, it Net pay depth is 39 – 73.5ft. The Porosity and Permeability of the reservoirs suggested a productivity hydrocarbon reservoir. The reservoir lies between Gas sands, Oil sands and Brine sands, reservoir 2 and reservoir 3 are oil sand reservoirs while reservoir 1 lies between an oil sand and a brine sand