International Journal of Business and Management Review (IJBMR)

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economic growth

The Effect of Interest Rate Spread on Economic Growth: Ghana’s Perspective (Published)

The purpose of the study was to investigate the effect of interest rate spread on economic growth using annual time series data from 1975 to 2018. The study used the Engel-granger two-step procedure which uses the OLS technique to establish both the long-run and short-run relationships between interest rate spread and economic growth. The study established that interest rate spread is a statistically important determinant of economic growth but it has a negative impact in the long-run. Also, the result shows that labour force, capital stock, and exports affect economic growth in Ghana positively both in the long-run and short-run. However, government expenditure appeared not to be a statistically significant factor in determining economic growth in Ghana. Policy actions that ensure macroeconomic stability should be embarked upon to achieve stability and sustainable growth of the economy. Export promotion, investment opportunities as well as producing active labour force should be given a priority.

Keywords: Ghana, Interest Rate Spread, Sustainable Growth, economic growth, government expenses

The Impact Of Foreign Direct Investment on Economic Growth of West African Member State’s (A Case Study Of Ecowas) (2001 – 2015) (Published)

Economic Community of West African States (ECOWAS) has been programmed to fuel economic growth of all its member nations not only through trade liberalization and common customs union but through attracting FDI inflow as well. Since its inception, it has been undergoing a series of institutional reforms to achieve its stated objectives. Against this background, this research investigates the relationship between foreign direct investment and economic growth in the Economic Community of West African States (ECOWAS). This study shall use panel data spanning 2001 to 2015. In order to achieve this, the study shall conduct empirical analyses by panel unit root, heterogeneous panel co-integration, and SUR multiple regression. Research findings from Pedroni co-integration test show that there is a cognate relationship between all the factors under investigation concerning ECOWAS region. Co-integration analysis also indicates a positive and significant relationship between variables such as financial development, FDI, domestic trade, and trade openness, while unemployment and social unrest negatively relates to economic growth, though unemployment is not statistically significant. For the sake of caution, this study uses a SUR multiple regression for the robustness test. Empirical result shows FDI strongly relates to economic growth in ECOWAS nation. The results are in consonance with the previous theories on growth-FDI modeling. The research findings suggest that ECOWAS members should provide a conducive and enabling environment to attract a free flow of FDI into their economy.

Keywords: Ecowas, FDI, Heterogeneous panel cointegration, SUR Multiple Regression., economic growth

Assessment of Agriculture to Business and Economic Growth in Ecowas Countries. (Published)

This study x-rayed agricultural sector as the engine of economic growth in Economic Community of West African Countries (ECOWAS); more so as the agricultural sector employs over 70% of the labour force and provides the means of livelihood for the greater population in the region. Furthermore, it is the believe that improvement in the agricultural sector productivity will likely enhance the per capita GDP growth of the ECOWAS. Data was collected using documentary evidence (secondary data). Time series methods of analysis such as panel unit root tests, panel co-integration test, panel co-integration regression method using fully modified ordinary last squares (FMOLS) model were employed for the analysis. The variables analysed include the GDP per capita (the dependent variable) and agricultural sector output per capita, capita stock per capita, industrial sector output per capita, services sector output per capita and government expenditure per capita (independent variables). The results established that agricultural sector output per capita, capita stock per capita and economic institutions exert no significant impact on per capita GDP of ECOWAS. However, government expenditure, industrial sector output and service sector output, all measured on per capita basis, significantly impacted on ECOWAS countries per capita GDP growth. The study concluded that only Government provision of services per capita, and industry sector output per capita significant stimulated growth in ECOWAS countries. Capital stock per capita and economic institutions did not. The study recommended efficient resources investment and functional institutions to further promote growth in the ECOWAS countries.

Keywords: Agriculture, Business, Per Capita GDP, economic growth

The Affects of Capital, Labor, Science and Techonology on Economic Growth of Daklak Province from 2011-2016 (Published)

Nowadays, economic growth is one of the central issues that attracting attentions of many countries in the first development stages (Edelstein Dan, 2015). As one of five provinces in Tay Nguyen, located in the border development triangle of Cambodia – Laos – Vietnam, Dak Lak has a strategic position of three countries in terms of politics, economy, society, national security and defense, ecological environment (Politburo, 2011).In the development process, Dak Lak has been exert to maintain a stable economic growth rate in many years, so it has increased the quality of people’s living (Politburo, 2011). However, in the development process, the economic has still grown in width, many potential have not been discovered and utilized effectively, the infrastructure is backward and the competitiveness is very low. In order to help the leaders have general, in-depth understanding about economic growth, the study based on methodology of meta-analysis, descriptive analysis and inferential analysis to evaluate the contribution of capital, labor and science and technology on the economic growth of Daklak province. From study results, the paper suggested some recommendations for promoting economic growth in the province.

Keywords: Capital, Cobb-Douglas, Icor, Labor, Tfp, economic growth

The Convergence Analysis of the Economic Growth of Asean+3 Countries and its Influencing Factors (Published)

ASEAN  is a geo-political and economic organization which is established on August 8, 1967. The objectives of the establishment of ASEAN include accelerating the economic growth and the social progress of cultural and social in Southeast Asia area. it is known that the income of ASEAN + 3 member countries is still very unbalanced with the index rate of an average of 0.98 per year. However, when it is viewed from year to year during the estimation period, the value of the Williamson Index tends to decrease, although it is very low. This shows the tendency of the movement of economic growth is increasingly convergent with the decreasing inequality level. The results of the analysis through calculation of Williamson Index are also in accordance with the results of the analysis conducted by panel data method. The result of panel data analysis shows that there is conditional and unconditional convergence process of economic growth of ASEAN + 3 countries because the dependent variable lag coefficient of -0.1 and -0.2 is between -1 and 0.

Keywords: Developing Country, Gross Domestic Product, Income, economic growth

Effect of Petroleum Profit Tax on Economic Growth in Nigeria (Published)

The study examines the effect of petroleum profit tax on economic growth of Nigeria. Income from petroleum taxes is the proxy for PPT while economic growth was measured using Gross Domestic Product (GDP). The research adopted expos-facto research as secondary data were used for the analysis. Data were sourced from the Central Bank of Nigeria Statistical Bulletin and the Federal Statistical Bureau. The study covered twelve year period (2004-2015). Time series data were analyzed using the simple linear regression.  The results reveals that  PPT had positive and significant effect on Nigerian GDP. The study recommends that the government should provide the necessary human and material infrastructures that are needed to support petroleum business so they can earn more income that will boost taxation.

Keywords: Gross Domestic Product, Nigeria, Petroleum Profit Tax, economic growth

Effects of Financial Inclusion on the Economic Growth of Nigeria (1982-2012) (Published)

Inclusive financial arrangement is becoming a policy issue in both developed and developing nations of the world as it has been perceived as a veritable tool for poverty alleviation and economic development. This paper examines the effects of financial inclusion on the economic growth of Nigeria (1982-2012). Data for the study are collected mainly from secondary sources such as Statistical Bulletins of the Central Bank of Nigeria (C.B.N.), Federal Office Of Statistics (F.O.S.) and World Bank. Employed data consist of such bank parametric as Branch Network, Loan to Rural Area, Demand Deposit, Liquidity Ratio, Capital adequacy, and Gross Domestic Product. Extracted data spanning about thirty-year period; 1982 to 2012 were related using the Ordinary Least Square (OLS) method (STATA 10). Tested hypothesis on Poverty Reduction found Loan to Rural Areas(LRA)Agric. Guaranty Fund (ACGSF)significant to Per Capital Income(PCI) (@5%)given t-stat2.82,p>t=4.85 while Financial Deepening(FDI) and Broad Money(FD2) also significantly influenced Economic Growth(Using GDP)with t-stats=3.61, 4.85 p>t=0.0013 and 0.000 respectively. Deposits From Rural Areas(DRA)as surrogate for financial inclusion is influenced by Loans to Rural Areas (LRA) and Small Scale Enterprise (LSSE)as surrogates for financial intermediation given t-stats=2.2 and2.9with p-values=0.03 and 0.007. The overall results of the regression analysis show that inclusive Bank financial activities greatly influenced poverty reduction(R2=0.74) but marginally determined national economic growth and Financial Intermediation through enhanced Bank Branch Networks, Loan To Rural Areas, and Loan To Small Scale Enterprise given about 50% relatedness between variables on either sides of the equations. Policy recommendations are made on the basis of these findings.

Keywords: Agricultural Guarantee Scheme Fund, Bank Branch Network, Financial Inclusion, Liquidity Ratio, Loan to Rural Area, economic growth


The main purpose of this study is to ascertain the existence of a relationship between inflation and economic growth in Nigeria. The methodology employed in this study is the quantitative research design. Consumer price index (CPI) was used as a proxy for inflation and the GDP as proxy for economic growth, to examine the relationship. The scope of the study spanned from 2000 to 2009. Ordinary least square method and t-test was used to test the variables most likely to impact on economic growth in Nigeria due to inflation. The findings also shows that there is strong relationship between inflation and economic growth in Nigeria, that exchange rate has positive impact on economic growth and that high interest rate discourages investment and hence forestalls economic growth. It is therefore, recommended that the monetary policies aimed at exchange rate be strengthened through effective supervision and regulatory framework of financial system by the monetary framework of financial system by the monetary authorities. Continuous monetary policies that will achieve the desired macroeconomic stability, increase in private sector credits and there is also need fro more effective management of interest rate in Nigeria

Keywords: Economic Stability., Exchange Rate, Inflation Rate, Monetary Authorities, economic growth


This study further investigates the impact of capital market activities on economic growth in Nigeria using vector autoregressive (VAR) methodology. Capital market as a mechanism for economic development aids to provide alternative long term finance in the face of high cost of fund. While this crucial role has been over-emphasized by different scholars, but no attempt have been made to embark on a rigorous analysis, particularly, to demonstrate the feedback effect among variables included in a model explaining the relationship between capital market activities and economic growth. In order to address this problem, the study adopts VAR analysis. The investigation reveals that increase in capital market activities contributed significantly to economic growth. Also, the findings show that there is a long-run relationship between economic growth and capital market activities. The model proved to possess strong predictive ability using the values of mean absolute error (MAE) and root mean squares error (RMSE). The paper concluded that, economic growth could be enhanced by focusing on the salient capital market variables with appropriate policies and efficient infrastructural development

Keywords: Capital market, Co-integration and VAR, Unit roots, economic growth

The Role of Stock Exchange in Economic Development and Capital Formation In Nigeria (Review Completed - Accepted)

This paper examines the functions and the expected role of the Nigerian Stock Exchange in economic development and capital formation in Nigeria. It adopted a survey method of analysis to show the relationship between the operations of the stock exchange and the level of capital formation in economic development in Nigeria. The objective of the study is to find out if the stock Exchange plays a significant role in capital formation and overall economic development of the various sectors of the economy. It is deserved that while the stock exchange in developed economies are vibrant agents of development, the contributions of stock exchange in developing countries are described as being a little above border line. Conclusions were reached among other things that though the stock exchange plays a very important role in the economic development of a nation, the extent to which an exchange will be able to play this role depends on the state of the economy. The paper thus recommends an expansion in the stock exchange role in the capital formation process.

Keywords: Capital Formation, Economic Development, Nigerian Stock Exchange, Stock exchange market, economic growth

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