open educational resources | Samuel Adegboyega University

Creative Commons License

Journal

Back to Home


A reciprocally re-enforcing relationship exists between institutions, foreign direct investment and economic growth. Sound institutional framework which supports foreign direct investment is significant for driving rapid Economic growth. An important factor that has undermined rapid and sustained economic growth is the weak institutional structure, decrepit state capacity and low level of foreign direct investment in Nigeria. Democratic structures reflected in the rule of law, effectiveness and predictability of the judiciary and enforceability of contracts proceedings is imperative for accelerating economic growth. Employing the Generalized Method of Moments (GMM) estimation techniques on annual time series data covering the period from 1981 to 2015, the relationship between these variables was empirically investigated. The empirical findings reveal that democratic institutions and foreign direct investment are significant variables influencing economic growth in Nigeria. In particular, the results, using Nigerian data, show that weak institutions have a destabilizing impact on growth. The impact of FDI on the other hand is found to be positive and significant. Therefore, sound institutional framework, as well as appropriate and consistent macroeconomic policies that encourage foreign direct investment to propel rapid economic growth in Nigeria needs to be put in place.


Download Staff Profile


Stability in price level is one of the main broad objectives of most economies over the world. Therefore, this study investigates the long-run relationship of macroeconomic variables effect on consumer price index from 1st quarter of 1998 to 4th quarter of 2015 and sourced data from Central Bank of Nigeria Statistical bulletin. The study adopted Park (1992) Canonical Co-integration regression (CRR) technique of analysis against other studies that used Vector Autoregressive Error Correction Model (VECM), Ordinary Least Square (OLS) and Error Correction Model (ECM). The study found out that, in the long-run, macroeconomic variables such as real income, money supply and exchange rate among others contributed positively and significantly to price level, while interest rate exert a negative significant effect. These explanatory variables combined to significantly influence the variations in CPI in Nigeria as much as 98% while the stochastic error term (U1) capture 2%. The study recommends that Nigeria government should pursue with vigour, policies that will enhance the reduction of the general price level and increased productive capacity of goods and services. Such policies may include wage control/freeze, monetary policy (reduction in money supply), good management of foreign exchange, total ban on importation of some goods and increase in domestic production of goods and services.


Download Staff Profile


The study examined the exchange rate fluctuation, stock market performance and economic growth in Nigeria. The study covers the period 1999 (when democratic rule returned to Nigeria) to the second quarter of 2016. The study adopted VAR Granger Causality/Block Exogeneity Wald Tests, VAR approach to derive the variance error decomposition and impulse function response. The empirical results found out that none of the variables has power to predict real growth in Nigeria. However, exchange rate has a causal feedback from growth rate, ASI, money supply and government capital expenditure. The findings also showed a causality flow from consumption to stock prices and exchange rate fairly caused ASI, but there is no causal relationship between inflation and naira value. The study revealed that exchange rate shocks are crucial factors in explaining economic growth and growth in stock market in the long run. It is recommended that conscious efforts should be made by policy makers to reduce exchange rate variability and to encourage improvement in stock market performance. It is also recommended that the continued devaluation of the naira and incessant depreciation of the currency against major foreign currencies should be checkmated by encouraging greater productivity in local commodities in which the country has comparative advantage.


Download Staff Profile


Interest rate has been recognized as an essential tool for the sustainability of real sector across many countries in which agricultural sector is one of the prominent sectors in every economy. In Nigeria however, finance has remained a major challenge of the agricultural production for the procurement of inputs, such as seeds, implements and fertilizers over the years. All efforts channeled to this sector with anticipated result on agricultural productivity have not boosted the performances of the real sector. This study examined the effect of interest rate on agricultural output in Nigeria using stationary, co-integration test, Granger Causality test and ordinary least square approach. The study applied time series data from Central Bank of Nigeria, Statistical Bulletin and National Bureau of Statistics which spanned from 1980-2014. The unit root test employed showed that the variables were stationary in the short run and co-integration test confirmed a long run relationship between the variables. The empirical result revealed negative relationship between interest rate and agricultural output in the model. Furth ermore, bank credit to agricultural sector, population growth rate, government expenditure on education and infrastructural facilities used as other control variables have positive effect on agricultural output. Finally, Granger Causality test confirmed both uni and bi-directional relationship in the long run. The study therefore concluded that agricultural output was significantly influenced by dynamic variables such as interest rate, bank credit to agricultural sector, population growth rate, government expenditure on education and infrastructural facilities on road in Nigeria during the study period.


Download Staff Profile


The significant role of agricultural sector cannot be underestimated in any nation. It has been the source of feeding of the populace and income generation for other developmental activities. As a result, various governments have been making concerted efforts to improve economic growth and agricultural productivity through agricultural credit but rarely one can see any improvement in the sector. It is in line with these its fundamental role that this study makes a giant stride to examine the relationship between agricultural credit and economic growth in Nigeria. The study employed time series data from Central Bank of Nigeria, Statistical Bulletin and National Bureau of Statistics which spanned from 1986-2014. This study carried out Auto-Regressive Distributed Lag (ARDL) approach to investigate the variables. The findings showed that short and long run relationship existed between agricultural credit and economic growth in both short and long run respectively. Moreover, real exchange rate and private domestic investment as control variables had direct effect on economic growth whereas inflation rate revealed an inverse relationship in the model. The study concluded that economic growth is influenced by dynamic variables such as credit to agricultural sector, real exchange rate, real interest rate, private domestic investment and inflation rate in Nigeria. The study therefore suggested that concerted efforts should be made by policy makers to increase the level of productivity of agricultural sector in Nigeria through adequate credit to the sector so as to boost the growth of the economy.


Download Staff Profile


This study examines the patterns and impacts of rice production and technological efficiency on economic growth in some selected countries. Data used for the study covered the period 1990-2015 and were all obtained from Word Bank Development Index online.  Descriptive and panel data techniques were employed in the analysis. The Panel regression results reveals that the F-statistics value for the fixed effect model exceeds (65.20) that of the Pooled OLS (58.1) at 1% level of significance, necessitating the adoption of the fixed effect model, with an adjusted Rvalue of 0.86. The empirical findings reveal that the countries exhibit differential rates of technology, necessitating some of the countries having technological efficiency values higher than the mean value of the entire sampled countries. The results further show that rice production index and technological efficiency are positive and significant to stimulating economic growth in the sampled countries. Hence, domestic production of rice induces positive spill-overs on income, employment and poverty reduction.   We recommend rice production enhancement policies as well is increased technological know-how should be encouraged in order to enhance economic growth in these countries


Download Staff Profile