Infrastructure Development and Economic Growth Nexus: The Nigeria Experience (Published)
This study examined the impact of government infrastructural development on transportation (IFDT), road (IFDR), water (IFDW) and telecommunication (ITEL) as they influence the growth process of the Nigerian economy, proxy by real GDP (RGDP), from 1990 to 2023. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin (various issues), World Development Indicators (WDI), and National Bureau of Statistics (NBS). Four models were estimated to capture the influence of infrastructure development on GDP growth. The Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests were conducted to ascertain the level of stationarity of the series. Descriptive statistics and econometric methods of Auto-Regressive Distributive Lag (ARDL) model and Granger causality estimation tests were conducted to examine the long run relationship of the series.The analysis revealed that infrastructure development on transport services (IFDT) was positive and significant in explaining changes in real GDP of Nigeria. However, Infrastructure development on road (IFDR), water (IFDW) and telecommunication (ITEL) were negative and not significant in explaining changes in Nigeria’s real GDP within the study period. On this basis therefore, the study concludes that there is no long run relationship between the dependent variable (RGDP) and the explanatory variables (IFDT, IFDR, IFDW and ITEL). It was recommended that the government, in partnership with the private sector, should increase her investment in the provision of infrastructural facilities that are reliable, durable and affordable to the people, as this will not just reduce the cost of doing business but also attract foreign investors into the country. Proper and dedicated maintenance culture of existing infrastructure facilities should be prioritized as this will save government huge amount that can be channeled into other areas of development.
Keywords: Infrastructure development on water, Nigeria, Road, economic growth, telecommunication
The Effects of Government Expenditure on Education and Health on Nigeria Economic Growth (Published)
This study examined the effects of government recurrent and capital health and education expenditure on the growth process of the Nigerian economy from 1980 to 2022, using the ECM test approach to cointegration. Annual data were sourced from the National Bureau of Statistics, Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Indicators (various issues). The Augmented Dickey Fuller test was used to check the level of stationarity while the ECM test to cointegration was adopted to justify the long-run relationship. The existence of a positive relationship was found between government health and education expenditure and RGDP growth of the Nigerian economy. Therefore, an improved health sector due to increased budgetary allocation would trigger a positive growth on the educational sector. The study recommends that for quality human capital development, the government should increased her spending on health and education and ensure that policies are implemented with high level of transparency, honesty and accountabilty, in Nigeria. Furthermore, an increase in government spending on the anti-corruption agencies would encourage the arrest and prosecution of those who divert and embezzle public funds in the country.
Keywords: Education, Government Expenditure, Health, Nigeria, economic growth
Impact of Exchange Rate on Economic Growth: Evidence from Nigeria (Published)
The effect of the exchange rate on GDP growth in Nigeria from 1985–2021, according to this analysis. The World Bank’s World Development Indicator (WDI) and the Central Bank of Nigeria’s (CBN) Statistical Bulletin were used as secondary sources of data. The real exchange rate served as a stand-in for the actual exchange rate, while real gross domestic product was used to gauge economic growth. We used the Augmented Dickey-Fuller unit root test to find out how integrated the series was. The bound test was used to test for cointegration. The bound test found that the exchange rate and economic growth are related in the long term. This research used the autoregressive distributed lag technique to estimate the short- and long-term effects of the exchange rate on GDP growth. The ARDL analysis shows that there is a weak negative correlation between the exchange rate and GDP growth. According to the research, trade openness has a small but favorable effect on GDP growth. Furthermore, the research indicated that foreign exchange reserves significantly and positively impacted economic development. There was also a negative and statistically significant relationship between interest rates and GDP growth. The analysis found that the exchange rate did not have a significant role in determining Nigeria’s economic development. Given the importance of a stable and predictable exchange rate in boosting economic development, the research suggests that monetary authorities implement a policy primarily aimed at stabilizing exchange rates.
Keywords: Interest Rate, Real Exchange Rate, economic growth, external reserve, trade openness
Impact of Entrepreneurship and International Trade on Economic Growth and Development in Nigeria (Published)
This study empirically investigates the impact of entrepreneurship and international trade on economic growth and development in Nigeria from 1990 to 2022. Domestic credit to private sector (DCPS), Exchange rate (EXR), Self-employment (SEEM), Total exports ((TEX), Total imports (TIM) and inflation rate (INFR)were used as dimensions of the independent variable while Real gross domestic product (RGDP) as the dependent variable. Annual time series data were obtained from secondary sources including the CBN annual statistical bulletin, World Bank development indicators. The Eview9 Statistical Software was employed to analyze the data empirically. The Unit root test shows that real gross domestic product, domestic credit to private sector, exchange rate, self-employment, total exports and total imports are all stationary after first difference I(1) while inflation rate was stationary at level I(0). The data were analyzed using the Autoregressive distributed lag (ARDL). The results of the ARDL estimates indicate that in the long run self-employment and total exports coefficients were positively signed and statistically significant which means that increase in self-employment and total exports in Nigeria will increase real gross domestic product (Economic growth) while total imports turned up with a negative sign and also statistically significant. It portends that total import has a negative impact on economic growth and development in Nigeria in the long run. The study recommends amongst others that government should promote entrepreneurship by providing credit and grants to encourage self-employment. Government should also encourage import substitution, promote exportation of locally made goods as this has positive impact on economic growth and development in Nigeria.
Citation: Adeyemo O. O. (2023) Impact of Entrepreneurship and International Trade on Economic Growth and Development in Nigeria, Global Journal of Arts, Humanities and Social Sciences, Vol.11, No.4, pp.52-68
Keywords: Development, Entrepreneurship, International Trade, Nigeria, economic growth
The Impact of Coronavrius on Health and Economic Growth in Sub- Sahara Africa (Published)
Health enhancement is an essential determinant of economic growth; though, the impact of health on economic growth is affected by the level of poverty in any country. This paper, therefore, examined the impact of health on economic growth during corona virus in Sub-Sharan Africa and the verge of health required to alleviate the adverse effect of poverty on economic growth in Twenty (20) selected Sub-Sharan Africa countries. Based on the endogenous growth theoretical approach, the link between life expectancy, poverty incidence, and economic growth was estimated using the GMM technique of analysis. Findings showed that coronavirus pandemic exerts negative impact on health condition, household welfare, unemployment and the adverse effect of poverty on economic growth in Nigeria. Though government expenditure significantly increased during the period in a bid to check the pandemic, but household welfare degenerated and was negatively affected with high poverty rate, this paper recommended that the government of the Sub-Saharan countries should diversify the revenue base of their economies to cushion the effect of unprecedented shock due to the pandemic and provide adequate relief materials to pad the effect of loss of income to the poor and vulnerable, invest in the health sector to control infectious and pandemic diseases.
Citation: Benedict Azu, Sunday Okubor Ijieh, Ifeanyi Shadrack and Iku Joel (2022) The Impact of Coronavrius on Health and Economic Growth in Sub- Sahara Africa, Global Journal of Arts, Humanities and Social Sciences, Vol.10, No.5, pp.39-50
Keywords: Health, and coronavirus, economic growth
The Nexus between Financial Development, Trade Performance and Growth in Nigeria (Published)
The study investigates the nexus between financial development, trade performance and growth in Nigeria between the period 1985 to 2020. Financial development, government expenditure, inflation rate and trade openness were used as dimensions of independent variables while real gross domestic product was used as the dependent variable. Annual time series data on our targeted variables were obtained from secondary sources including the Central Bank of Nigeria annual statistical bulletin, World Bank development indicators. The Eview9 Statistical Software was employed to analyze the data empirically. The Unit root test shows that financial development, government expenditure, trade openness and real gross domestic product are all stationary after first difference I(1) while inflation rate was stationary at level I(0). The data were analyzed using the Autoregressive distributed lag (ARDL). The results of the ARDL estimates indicate that in the long run financial development and government expenditure coefficients have positive relationships with real gross domestic product and they are also statistically significant. The study recommends amongst others that Nigerian trade performance should be improved through economic diversification so as to reduce much emphasis on oil export and availability of funds from private sector at competitive interest rate in order to produce internationally competitive products should be encouraged. Also, there should be the implementation of monetary policies that would bring about stability in exchange rate, promote trade openness and ensure government purchases that enhances financial development.
Citation: Adeyemo, Oyindamola Olajumoke and Tamunowariye, Chinonso (2022) The Nexus between Financial Development, Trade Performance and Growth in Nigeria, Global Journal of Arts, Humanities and Social Sciences, Vol.10, No.3, pp.1-17
Keywords: Nigeria, economic growth, financial development; trade performance
Comparative Analysis of Fiscal Decentralization and Economic Performance of Akwa Ibom and Cross River State in Nigeria (Published)
This paper analysed the impact of fiscal decentralization on economic growth of Cross river state and Akwa Ibom state in Nigeria using secondary data from joint task board, Revenue Allocation board and national bureau of statistics (NBS) from 2005-2020. The Study adopts SURE model method of Estimation to analyse the results. Finding from the study revealed that Federal Allocation, Internally generated Revenue, Fiscal Autonomy and Population decentralization in Nigeria influences economic growth in Cross river state and Akwa Ibom state. The theoretical expectation that decentralization would improve the economic performance of the selected states in south-south through proximity and regional competition seem not to be found in the study. The flow of fiscal decentralization in Cross river state and Akwa Ibom state in Nigeria seem to follow inefficient application of resources by the political class with increased cost of governance rather than ensuring cost effectiveness in the provision of public services. Therefore, findings from the study revealed that population growth and internally generated revenue are the major determinants of Economic growth in Cross river state while Fiscal Autonomy and Federal allocation contributes infinitesimal to economic growth but not the major determinants of Economic growth in Cross river state. Also findings from the study revealed that Internally generated revenue and Federal allocation are the major determinants of Economic growth in Akwa ibom state while Fiscal Autonomy and population growth contributes infinitesimal but not the major determinant of Economic growth in Akwa ibom state. Therefore the study suggests key Economic reforms to improve transparency and accountability in all sectors of the economic as well as good governance in order to make fiscal decentralization a catalyst for economic growth in Cross river state and Akwa Ibom state of Nigeria. The study also recommends that Policy measures must be put in place to grow the economy using monetary and fiscal policy mix reaction to ensure macroeconomic stability and realisation of macroeconomic goals of economic growth, price stability, low unemployment and balance of payment of states in Nigeria.
Keywords: Cross river state and Akwa ibom state, Fiscal Decentralization, SURE Model, economic growth
Foreign Direct Investment, Remittances and Economic Growth in Nigeria. Do these inflows stimulate Growth? (Published)
The effect of international inflow of capital on economic growth has generated a lot of argument and debate over time. Some concluded that capital inflow does not matter and in effect cannot stimulate the desired growth while others believed it does matter in promoting the key macro-economic variables such as the reduction in unemployment and poverty, price stability, industrialization just to mention a few. Hence, this study was set out to investigate the effect of Foreign Direct Investment and Remittances on economic growth in Nigeria. The study adopted other explanatory variables and data were sourced from the World Development Indicator and Central Bank of Nigeria spanning from 1980 to 2019 and Ordinary Least Square was used to analyze the data after it has been subjected to unit root stationary test. The study found that Foreign Direct Investment has a negative relationship with economic growth and Remittances seem to have a positive effect on economic growth. The study, therefore, concluded that FDI does not stimulate desired growth while remittances promote growth in Nigeria. In the light of these findings, the study, therefore, recommended that government should remove impediments discouraging investment policies that will stimulate the use of FDI in the country. The Nigeria government should also encourage inflow and monitoring of remittances through financial institutions to enable them to have adequate data on this inflow to gear it into the growth process.
Keywords: Foreign Direct Investment, Remittances, economic growth
Balancing Economic and Environmental Benefits: The Goal of Sustainable Development (Published)
As society grows, its increasing social demand is also when large resources are being lost, as well as the price for growing. The balance between the two economic and environmental benefits recently has been constantly mentioned as a difficult problem for any country. This research points to the growing conflict between economic development and environmental protection, how to balance economic benefits with environmental protection, and propose solutions to both economic development and environmental protection.
Keywords: Sustainable Development, Vietnam, economic growth, environmental protection and improvement