Trade War and Economic Development: The Case of Some Selected Major Economies (Published)
Globally, trade liberalization is seen as a major source of economic development. In spite of this, United States, China and Canada have recently imposed different forms of trade restrictions on selected products from each other’s countries, European Union and Mexico have also threatened different countermeasures to the US’s trade war. These are capable of causing severe negative economic consequences to global trade if not halted. Consequently, this paper examines the impact of trade war on economic development of six selected major economies of the world. The study proxied trade liberalization by import and Export volumes, economic development is measured by Gross Domestic Product (GDP) per capita (constant 2015 US $) and Misery Index (MI) measures economic distress. The study adopted stratified random sampling method in selecting six countries (Australia, United States of America, United Kingdom, Brazil, China and Nigeria) and employed descriptive analytical techniques on these time series data. The study found that, the trends of these indicators were volatile during normal economic circle and even more during major economic shocks like the financial crisis of 2009, the Brexit of 2016 in the UK, the United States’ presidential election campaign rhetoric of president Trump of trade protectionism, deregulation and tax cut and his trade war pronouncements of 2016. The study recommended that no country should unilaterally impose trade restrictions on imports from others countries since it can degenerate into a full-blow trade war. World Trade Organization should ensure that trade disputes among member countries are settled as quickly as possible.
Keywords: Economic Development, misery index, trade war
Analysing the Impact of Government Expenditure on Economic Development in Nigeria (Published)
The broad aim of this study is to investigate how government expenditures affect economic development in Nigeria. The study was anchored on the Keynesian theory and adopted the ex post facto research design. Data for the study was collected from secondary sources such as the Central Bank of Nigeria statistical bulletin and World Bank Development Indicators for the period 2000 to 2024. Findings of the study offers evidence of significant positive impact of government expenditure on education, expenditure on health, and expenditure on agriculture on economic development. Overall, the empirical result showed that government expenditures have a significant positive relationship with economic development in Nigeria and recommended that government should increase budgetary allocation for education and health to at least 15% to 25% of the total budget.
Keywords: Economic Development, Government Expenditure, Per Capita Income, expenditure on agriculture, expenditure on education, expenditure on health
Impact of Insecurity on Nigerian Economic Growth and Development (Published)
This paper examines insecurity challenges and implications on business activities, economic growth and economic development of Nigeria. The study was designed as ex-post factor research, with time series data sourced from official and government publications; spanning from 2009 to 2022. The variables used for the study were sourced after adequate considerations of extant literature and objectives of the study. In meeting with the objectives of the study, we logically break-up the data into pre-high insecurity period (2009- 2015) and high insecurity period (2016- 2022). Four hypotheses were formulated and tested using t-test, f-test; and Cho-test was used to test the variance between the two time periods under study. The study found that insecurity hampers Business Activities (BA) but does not have significant influence on Economic Growth (EG) and Economic Development (ED) of Nigeria; and concluded that national insecurity must be of high consideration as business activities blossom in a secure environment, which ultimately ensures sustainable economic growth and development. We therefore recommend a synthesis of composite security management approach model and two-way approach model in addressing the ills of insecurity in ensuring Nigeria economic sustainability.
Citation: Agogbua, Stanley Ndubisi; Mgbatogu, Chukwudi D. and Nzewi, Ugochukwu C. (2022) Impact of Insecurity on Nigerian Economic Growth and Development, International Journal of Development and Economic Sustainability, Vol.10, No.5, pp.1-13
Keywords: Economic Development, Foreign Direct Investment, Gross Domestic Product, Insecurity, Per Capita Income, business activities, economic growth
The Effect of Fiscal Policy on Economic Development: A Comparative Study on Gross Domestic Product and Human Development Index in Nigeria 1990-2017 (Published)
This study sought to provide more insights on the topic “fiscal policy and economic development” by extending its focus to examining the relationship between fiscal policy and economic development using human development index (HDI) as a more comprehensive representation of human and economic progress than the gross domestic product (GDP). The study adopts an ex-post facto research design to enable the use of Nigerian time series data from 1990 to 2017in an Ordinary Least Square (OLS) regression technique for analyses. Findings reveal that fiscal policy variables such as government revenue and expenditure have negative effect on the gross domestic product but positive and significant on human development index of Nigeria, while government debt has positive effect on GDP and significantly negative effect on HDI. Results further reveal interesting outcomes on the effect of fiscal policy on Nigeria’s economic development such trade depicting a negative and significant effect on HDI but positive and insignificant for GDP. The study, therefore recommends that using HDI to measure the effect of fiscal policy may be a better approach to measuring economic development. Also, that the government of Nigeria should engage in more productive and try to improve on the mechanisms to grow its revenue to enhance economic development in Nigeria.
Keywords: Economic Development, Fiscal Policy, Gross Domestic Product, Human Development Index
The Effect of Fiscal Policy on Economic Development:A Comparative Study on Gross Domestic Product and Human Development Index in Nigeria 1990-2017 (Published)
This study sought to provide more insights on the topic “fiscal policy and economic development” by extending its focus to examining the relationship between fiscal policy and economic development using human development index (HDI) as a more comprehensive representation of human and economic progress than the gross domestic product (GDP). The study adopts an ex-post facto research design to enable the use of Nigerian time series data from 1990 to 2017in an Ordinary Least Square (OLS) regression technique for analyses. Findings reveal that fiscal policy variables such as government revenue and expenditure have negative effect on the gross domestic product but positive and significant on human development index of Nigeria, while government debt has positive effect on GDP and significantly negative effect on HDI. Results further reveal interesting outcomes on the effect of fiscal policy on Nigeria’s economic development such trade depicting a negative and significant effect on HDI but positive and insignificant for GDP. The study, therefore recommends that using HDI to measure the effect of fiscal policy may be a better approach to measuring economic development. Also, that the government of Nigeria should engage in more productive and try to improve on the mechanisms to grow its revenue to enhance economic development in Nigeria.
Keywords: Economic Development, Fiscal Policy, Gross Domestic Product, Human Development Index
The Role of Small Medium Enterprises in Reducing the Problem of Unemployment in Jordan (Published)
The Jordanian economy is mainly considered a SMEs based economy where small and medium enterprises (SMEs) contribute 98% of Jordanian enterprises and their Employees represent around 60% of the labor force with a total product counts around 50% of the GDP. SMEs sector has been faced with many challenges that have started with development happening in Jordan into a highly freed and open market economy. The whole thing was quickly moving and upgrading, which resulted in a biased and a long-lasting effect on SMEs. Jordan started its open market policy and deregulation in 2000 and then Nine years later the SMEs sector was affected again with the economic disaster. SME plays an essential role in improving Jordanian employment section. This research shows the impact of SMEs in reducing the problem of Unemployment in Jordon. It highlights the main factors affecting the improvement and job opportunities creation. There is increasing evidence that SMEs play an essential role in the economic development in Jordan. SME’s provide the majority of new jobs opportunities and produce much of the creativity that leads economic progress. SMEs is the only solution to open new job opportunities to a huge number of Jordanians. This paper highlights this to measure how SMEs can reduce unemployment problem in any country and considering Jordan as case study.
Keywords: Economic Development, Job opportunities creation., Small Medium Enterprises, Unemployment
The Impact of International Fund for Agricultural Development (IFAD) On Economic Development in Nigeria: 1985-2015 (Published)
IFAD intervention programmes are tailored towards the seeming problems of poverty through increased domestic savings and investments. There is no gainsaying the fact that the literature is complete on various policy mix that could usher in the much desired economic development especially in developing economies. Since the mid 80’s, IFAD has been involved directly in development programmes of LDCs, but to what extent have these programmes impacted on some of the major or key indicators of economic development such as literacy level, income generation, life expectancy, infant mortality amongst others, hence the need to examine the impact of IFAD programmes on these variables. The objectives of the study included to identify the key IFAD intervention programmes on incremental income, literacy rate, life expectancy and infant mortality. Secondary data were sourced and analyzed using the Ordinary Least Squares (OLS). The major findings of the study showed that the long-run determinants of economic development; measured by per capita income, are largely from IFAD funded project inputs in Nigeria (IFPN) and life expectancy in Nigeria (LERN). Literacy rate proxied by total enrolment in primary education regardless of age and expressed as a percentage of the population of official primary education age have negative coefficient and results in -0.382% change in economic development in the long run. Similarly, the coefficient of infant mortality rate in Nigeria measured by 1000 live births is indirectly related to economic development. It is against this background, that the study recommended increase funding of agricultural activities and rural savings mobilization, and by extension promotes development through increasing the volume and productivity of human capital as result improvement in life expectancy.
Keywords: Agricultural Development, Economic Development, International fund
Oil and Gas Sector Law Reform and Its Implications for Economic Development in Nigeria (Published)
This study focused primarily on oil and gas sector law reform and its implications for economic development in Nigeria. The objective is to review the reform in the oil and gas sector law since the adoption of democracy in 1999 and what implications it portends for economic development. The study adopted the political economy method to x-ray the issues that are germane to the study. Findings revealed that a consensus has not been reached on the proposed Petroleum Industry Bill as there are points and counterpoints for the passage of the Bill into law. Also, the enactment of the Nigerian Content Act is impacting positively on economic development. It is therefore recommended that political will be geared towards seeing the bill through and that the Nigerian Content Development and Monitoring Board be strengthened to carry out her oversight functions.
Keywords: Economic Development, Political Economy and Nigeria., Reform, oil and gas sector
Empirical Review of Government Expenditure on Education and Economic Development in Nigeria (2000 – 2015) (Published)
The study empirically reviewed government expenditure on education and economic development in Nigeria from 2000–2015. The specific objective is to examine the extent to which the Nigerian GDP affects the government expenditure on education, social and community services and the number of school enrolment within the period being reviewed. Secondary data employed were from the EFA 2015 report and CBN bulletin published in 2016. Multiple regression analysis and student t-test were the statistical tools applied, with the use of SPSS for both data analysis and to test the hypotheses formulated for the study at 5% level of significance. The result indicated that expenditure on education is significant and impacts on the economy. While the result on SCS and ENRL showed a significant relationship with the GDP but little or no impact. The conclusion is that, the anti-graft fight by the present government to encourage proper use of resource allocation has to be encouraged by all good citizens and lovers of education. If the resources allocated are efficiently utilized to equip Government owned schools, education will be affordable by all and number of school drop-outs will reduce significantly.
Keywords: Economic Development, Education, GDP, enrolment, social and community services.
Constraints to Agricultural Development in Nigeria (Published)
The role of agriculture in accelerating economic growth and development process of any nation cannot be overemphasized. However, in Nigeria, the sector has suffered severe neglect, due in part, from the windfall from the discovery of oil in the 1970s and other structural rigidities. The study investigated the constraints to agricultural development in Nigeria using time series data spanning the period 1970 – 2010 and contemporary econometric methods of unit root test, co-integration and error-correction mechanism. Empirical findings reveal that rainfall, exchange rate and food export (lag one) are the most significant positive determinants of agricultural output in Nigeria. However, food imports, diversion of funds meant for agricultural purposes and low technology diffusion in agriculture are among the factors identified as constraints to agricultural development in Nigeria. The study recommends among others, maintenance of stable and favourable exchange rate regime, and the pursuance of programmes that will bolster partnerships between research institutions and other stake holders in agriculture as a route to facilitating agricultural development and hence, economic development in Nigeria.
Keywords: Agricultural Constraints, Agricultural Development, Economic Development, Food Export