Foreign Direct Investments and Economic Growth in Nigeria: A Disaggregated Sector Analysis

This paper attempts to investigate the impact of Foreign Direct Investment (FDI) on economic growth in Nigeria. The research developed a structural macroeconometric model consisting of four blocks made up of supply,  private demand, government and external sectors. The model deploys 18 simultaneous equations  and 100 variables to capture the required proxies. The research adopted a three-stage least squares (3SLS) technique and macroeconometric model of simultaneous equations to capture the disaggregated impact of FDI on the different sectors of the economy and the inter-linkages amongst the sectors in order to give better insight into the variations inherent therein. The finding shows that FDI has a significant impact on output of the economy but that the growth effects of FDI differ across sectors. The paper recommends sector-specific policies, enhanced trade openness, import substitution development strategy incentives to existing investors, and potential overseas investors so as to enhance the development of the country. Keywords: Foreign Direct Investment, Economic Growth, Simultaneous Equation, Macroeconometric Mode

Policy Mix, Convergence and Growth in ECOWAS Countries

This paper is just a sample template for the prospective authors of IISTE Over the decades, the concepts of This study attempts to examine the convergence of macro-economic policy variables among Economic Community of West African Countries (ECOWAS); examines the nature of convergence of macroeconomic policy variables among ECOWAS countries and analyze  the impact of convergence in policy mix on growth in ECOWAS countries. This was in view of examining policy mix, convergence and growth in ECOWAS countries. The study deploys the endogenous growth framework of Solow-Swan (1956) as modified by Ramsey using the Cobb Douglas production function for both the convergence equation and growth equation.  The study employed Panel Ordinary Least Square method on panel annual time-series data and analyzed with fixed-effect since a common attribute is expected from the selected countries. Panel unit root data tests were conducted in order to determine whether the series has a problem of unit-root using Dickey-Fuller. The finding of the study showed that all the selected countries diverge in their fiscal variables while they converge in monetary policy. Hence the study recommended that further studies can also conduct their research on regional basis in order to account for appropriate possibility for economic integration within the region among African countries. Key Words: Policy Mix, Convergence, Economic Growth, ECOWAS, Regional Integration

Economic Growth and Unemployment Nexus: Okun’s Two-Version Case for Nigeria, South Africa and United States of America

Okun’s law in its original form was predicated on the experience in the United States of America. Some methodological refinements have been added based on studies conducted in other climes with varied results. This research investigated the applicability of this law in Nigeria, South Africa and the United States of America. The study conducted a comparative analysis of three of the versions of the law. The research employed Ordinary Least Squares method having validated it’s appropriateness with Dickey-Fuller and Philips-Perron tests. The demonstrated superiority of the dynamic version over the difference version was manifest in all the countries. The result also showed that the dynamic version of the law was applicable in the three nations while the difference version showed the lack of linkage between economic growth and unemployment only in Nigeria. Deployment of employment creative employment schemes, labour market reform and economic restructuring are recommended in the Nigerian case.  The policy makers on South Africa and USA are enjoined to pursue growth- inducing policies.&nbsp

ECONOMIC GROWTH AND MACROECONOMIC DYNAMICS IN NIGERIA

Purpose. The role of macroeconomic variables in shaping the economic status has been debated in the literature. The management of these factors has been epileptic and sometimes contradictory with consequential implications for sustainable economy. This study therefore examined the relative significance of macroeconomic factors (inflation rate, interest rate, exchange rate and unemployment rate) on current national income. In addition, it sought to ascertain the relative importance of prior income (past GDP) on current national income (current GDP) based on data obtained between 1975 and 2015. Methodology. The study deployed pre-estimation descriptive statistics and stationarity tests using the Augmented Dickey Fuller test and Phillip Perron tests. Johansen cointegration test was applied for establishing the long run relationship of the variables. The final phase is the post estimation tests to confirm the robustness of the estimated model. These are the Breusch-Godfrey test to check for any form of auto correlation among the variables, the heteroskedasticity test and the Impulse Response analysis of the dependent variable with respect to shocks in the explanatory variables. Findings.The result findings revealed that inflation contributes negatively to economic growth. Interest rate, exchange rate and unemployment impact economic growth positively. The entire explanatory variables have no short-run effect. The result of the Breusch-Godfrey LM and Breusch-Pagan-Godfrey test indicated the absence of serial correlation and heteroscedasticity respectively. In effect, by itself, macroeconomic stability does not guarantee sustainable high rates of economic growth in the absence of key institutional and structural measures. The study recommended diversification of the economy and the use of inflation targeting which would be commensurate with the level of economic growth should be pursued by policy makers Limitations. This research examined the impact of the various macroeconomic variables on the economy over a period of 41 years. A structural break analysis of the impact before and after major policy shifts like Structural Adjustment Programme (1986), Financial Sector reform (2004), Global Financial Crisis (2007 - 2008) etc. should be explored by new studies. Originality. This study is an original work. It has not been published in any other journal and is not being considered for publication by another channel.

Bankruptcy and Insolvency: An Exploration of Relevant Theories

The essence of the law on bankruptcy is to collect the debt of an entity and distribute such asset among the contending claimholders. It is, also meant to resolve the broad issues of business failure in the context of the imminent or indeed the actual collapse of the indebted entity. The objective of the study is to explore relevant theories guiding the procedure of distribution or entitlement in bankruptcy among a group of agents. The study employed exploratory research method via an extended literature review, to investigate the underlying principles guiding the allocation of a given amount of a perfectly divisible good among a group of agents. The results of this extended literature review indicate that the procedure of distribution or entitlement in bankruptcy is supported by five of the theories reviewed while only value based theory posits the absence of any cogent solution to the financial distress of the debtor. The knowledge of theories is not enough for business survival, the ability to predict the possible occurrence of business failures is necessary. Market based models including the stock market option valuation approach perform better than the earlier models which rely heavily on historical accounting figures. Keywords: Bankruptcy, Bankruptcy Theories, Exploratory Research, Genetic Programming Model JEL Classifications: G33, KII, K1

Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus

While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of financial markets. Macroeconomic reform is crucial if economies will benefit from financial markets integration. Exchange rate, inflation, fiscal deficits policies must be such that communicates macroeconomic stability, as this in turn suggests an investible territory to investors.  Keywords: Financial Markets Integration, Stock market spill overs, Spill over index, VAR, Volatility transmission JEL Classifications: C13, C23, C81 E44, N2

MONETARY POLICY AND THE SUSTAINABILITY OF THE MANUFACTURING SECTOR IN NIGERIA

The conflicting results in relationship between monetary policy and the sustainability of the manufacturing sector necessitated this research. The study carried out some preliminary tests including the descriptive statistics and the Augmented Dickey Fuller unit root tests. The optimal lag length criteria, and the Johansen Co-Integration test were applied to verify long run association among the series. The Vector Error Correction model was estimated as a verification of the short run adjustment. The Breusch-Godfrey Serial Correlation Lm test, Durbin Watson Statistic, and Breusch-Pagan Heteroscedasticity tests were conducted. The results confirmed the existence of a long run relationship among the variables. A positive relationship between monetary policy and manufacturing sector performance in Nigeria was observed at the 5% level of statistical significance. No short run association between the external reserves and inflation rates was recorded. The study therefore recommends that the government avoid monetary policy summersaults

Financial Institutions’ Inter Mediation and Economic Development in Nigeria

This paper examines the effect of intermediation capacity of the financial institutions on the Nigerian economic development (Real Gross Domestic Product (RGDP). It is a causal-effect relationship study which made use of macro data obtained from Central Bank of Nigeria (CBN) Statistical Bulletin from the period 1981-2016. The result of the Johansen co-integration test and ARDL bound test evidenced that there exist a long-run relationship between financial institutions’ activities and real GDP. ARDL regression model showed financial institution activities, particularly the loans to the private sector significantly impacted on economic growth both in the short-run and long-run The study also found that bank loans and advances, bank reserves and interest rate had insignificant negative impact on real GDP while credit to private sector significantly affected economic development of Nigeria (RGDP) Thus, economic development of Nigeria is driven by the performance of deposit money banks and concludes that the performance of deposit money banks has effect on the economic development of Nigeria. The study recommended that the banking sector should increase lending to the private sector in order to engender economic growth through the enhancement of entrepreneurial development

Entrepreneurship, economic development and inclusive growth

ABSTRACT Entrepreneurship and economic development in the opinion of Schumpeter are intimately related notwithstanding the form of economic and political set-up of a country. In essence, entrepreneurship is indispensable for economic development. The growing interest in the area of entrepreneurship has extended to a balanced and broad-based economic growth and development as requirements in the structural transformation of the economy. The crux of the paper is to examine the role of entrepreneurship in encompassing economic development especially inclusive growth. The research finds that entrepreneurship promotes economic growth. However, where credit subsidies for start-ups dilute the quality of the entrepreneurial pool, this will adversely affect economic growth. The study recommends that government puts in place entrepreneurship -promoting policies with positive externalities thereby enhancing high economic growth and development. Entrepreneurial programmes should also incorporate participatory monitoring mechanisms in order to ensure that industrial and commercial policies continually reflect the priorities of the vulnerable and poor people