Insurance and Economic Growth (Review Completed - Accepted)
The purpose of this paper is to study the relationship between the insurance business and the economic growth of 23 OECD countries over the period 1990-2011, using a static panel data model. The key findings emerged from the empirical analysis show a positive impact of non-life insurance, as measured by the penetration rate on economic growth and a negative effect exerted by the total insurance and non-life insurance, as measured by the density on economic growth.
Keywords: Insurance, Static Panel Data Model, economic growth
Impact of Government Expenditure on Economic Growth in Nigeria (Published)
This study investigates the effects of public expenditure in education on economic growth in Nigeria over a period from 1977 to 2012, with particular focus on disaggregated and sectoral expenditures analysis. Government expenditures are very crucial instruments for economic growth at the disposal of policy makers in developing countries like Nigeria. The objective of this study is to determine the effect of public expenditure on economic growth in Nigeria using Error Correction Model (ECM). The study used Ex-post facto research design and applied time series econometrics technique to examine the long and short run effects of public expenditure on economic growth in Nigeria. The results indicate that Total Expenditure Education is highly and statistically significant and have positive relationship on economic growth in Nigeria in the long run. The result has an important implication in terms of policy and budget implementation in Nigerian. We conclude that economic growth is clearly impacted by factors both exogenous and endogenous to the public expenditure in Nigeria. It is therefore recommended that, there is need for government to reduce its budgetary allocation to recurrent expenditure on education and place more emphasis on the capital expenditures so as to accelerate economic growth of Nigeria and that Government should direct its expenditure towards the productive sectors like education as it would reduce the cost of doing business as well as raise the standard living of poor ones in the country
Keywords: Capital Expenditure, Education, Endogenous Growth, Error Correction Model, economic growth
Impact of Agricultural Export on Economic Growth in Cameroon: Case of Banana, Coffee and Cocoa (Published)
The main objective of the present analysis is to explore and quantify the contribution of agricultural exports to economic growth in Cameroon. It employs an extended generalized Cobb Douglas production function model, using food and agricultural organization data and World Bank Data from 1975 to 2009. All variables were non stationary and of an order I (1), so the Cointegration test was conducted for long run equilibrium. All the variables confirmed cointegration and as such the conventional vector error correction model was estimated using the Engle and Granger procedure. The findings of the study show that the agricultural exports have mixed effect on economic growth in Cameroon. Coffee export and banana export has a positive and significant relationship with economic growth. On the other hand, cocoa export was found to have a negative and insignificant effect on economic growth. Base on our findings, it is recommended that policies aimed at increasing the productivity and quality of these cash crops should be implemented. Also additional value should be added to cocoa and coffee beans before exporting. When this is done, it will lead to a higher rate of economic growth in Cameroon
Keywords: Agricultural Export, Cameroon, Cointegration, Vector Error Correction Model, economic growth