Trade Openness and Human Capital Investment in Nigeria (Published)
Successive administrations in Nigeria have developed a number of programmes and policies (Universal Basic Education (UBE), National Immunization Coverage Scheme (NICS), Midwives Service Scheme (MSS) and Structural Adjustment Progranme (SAP) etc.) aimed at harnessing the positive influence of trade openness on human capital investment in the country. In spite of these, human capital in Nigeria is grossly under developed. This paper examines the impact of tr\ade openness on human capital investment in Nigeria between 1981 and 2020. The study employed Vector Auto Regression (VAR) modeling techniques for the analysis. Human capital investment was proxied by total government expenditure in health and education (dependent variable) while trade openness was measured by trade openness index (explanatory variable). Per capita electricity consumption and exchange rate served as check variables. Human capital investment showed strong endogenous impact (strong influence) on its self while trade openness and per capita electricity consumption exhibited strong exogenous impact (weak influence) on human capital investment throughout the forecast period. The study recommended that, since trade openness in Nigeria is crude oil centered, government should invest more revenue from the sales of crude oil in human capital development for trade openness to have any significant impact on human capital investment in Nigeria.
Keywords: Capital, Human, Investment, Trade, openness
INTERNATIONAL TRADE: A MECHANISM FOR EMERGING MARKET ECONOMIES (Published)
International trade has contributed greatly to the global economic system. Emerging market economies (EME) was a result of international trade activities. The international trade programme has encouraged many countries in the world to adopt international economic policies that promote greater trade and investment. BRICs acronym implies Brazil, Russia, India and China represent the leaders of these emerging market economies. International trade activities underpin the growth and development of these countries. This study brings round the facts and figures on the activities of international trade and how its fostered growth and development of the emerging market economies. Many theories of international trade were used to underpin these activities of the trade. These include Heckscher-Ohlin model, Rechardian model and Gravity model of international trade. The researchers’ presents some criticisms accompany by these beautiful roles play by international trade to emerging market economies and useful recommendations were provided for these economies.
Keywords: Dumping, Emerging market economies, Global economic system and theories, International Trade, Investment
SHIFTING GLOBAL ECONOMIC PARADIGM (Published)
The 21st century was started with the dawn of a new economic puzzle of China’s fast economic growth. It has surprised the economists. The Chinese constant upward growth has shifted economic paradigm and the axis of growth appear to have been shifted from the western hemisphere to the eastern hemisphere. Some economists term it a 21st century miracle. The author has determined to test this miracle through empirical framework. Main research question of this study to explore the answer of the question why China is recording consistent rapid economic growth? Is this growth in the same way as other developed countries experienced in the past or is it a new phenomenon-a shift in global economic paradigm.The objective of this empirical analysis is to investigate into the causes of fast economic growth of China in the context whether this growth pattern is a normal phenomenon or an indicator of shifting global economic paradigm.Our study is spread over a period starting from 1980 to 2011 because of the introduction of economic reforms and massive economic growth. We have collected data from different sources such as China Bureau of National Statistics, IMF, World Bank and relevant research Journals and books. The selected variables for this research paper are: labour productivity, investment, exports, Research and Development expenses, capital stock, open door policy, real exchange rate and US GDP. We used ordinary least square (OLS) model to measure change in the selected variables. Five tests were used to test the stability of the model. The Econometric results show that international trade and investment in capital stock and R&D expenses by Chinese Government are the major determinants, which are responsible for enhancing labour productivity and output in the long-run, Similarly, real exchange rate appears as an important determinant to explain change in output in the long-run
Keywords: China, Exports, Investment, Labour productivity, Open door policy, Output, R&D