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
Valuing the Joint Effect of Adult Literacy and Economic Growth on Renewable Energy Consumption in African Zone (Published)
Renewable energy has been considered as the optimistic sources generating from natural resources, able to restock easily and without harming environmental damages, ensures enviornemntal sustainability. In the developing and underdeveloped economies, renewable energy accelerates the wheel of economic growth and development with enhancing the new innovation and enhancing the life-standard of people. The paper aims to investigate the effect of independent variables (General and Socio-economic basis) on consuming renewable energy in zonal-wise. Moreover, the author wants to investigate the joint effect of economic growth (EG) and average literacy rate (ALR) on consuming renewable energy on time-series database from World Bank (WB). Lastly, after measuring joint hypothesis, it is investigated that EG*ALR has joint effect on model in North African Zone (NAZ), Eastern African Zone (EAZ) and Western African Zone (WAZ).
Citation: Tanbir Hossain (2022) Valuing the Joint Effect of Adult Literacy and Economic Growth on Renewable Energy Consumption in African Zone, International Journal of Development and Economic Sustainability, Vol.10, No.4, pp.52-73
Keywords: Renewable Energy, Sustainability, average literacy rate, economic growth
Rising Youth Unemployment and The Socio-Economic Realities in Nigeria: The Akwa Ibom State Experience (Published)
This paper was undertaken to establish the interplay between youth unemployment and resultant negative socio-economic realities in Nigeria as evident in Akwa Ibom State. Nigeria’s population and that of Akwa Ibom State is currently (July, 2022) estimated at about 206 and 7 million respectively with a progressive average growth rate of 3.5 percent per annum. Out of this number, while more than 35 percent at the national level, over 52 percent of the youth in Akwa Ibom State are unemployed. This situation, as the paper observed, is occasioned by crucial factors ranging from the poor state of the economy and educational standard, poor attitude to agriculture, poor enabling and secured environment, scarcity of data on informal employment and entrepreneurship, poor economic growth rate and wrong impression about technical and vocational education. Furthermore, the paper noted that the prevailing unemployment among youth in Akwa Ibom State has engendered high rate of social vices such as prostitution, armed robbery, oil bunkering, internet fraud, drug trafficking and addiction, rape, kidnapping, political thuggery, assassination and other acts of criminalities. For the way forward, the paper proffered, among others, that the Akwa Ibom State government should redesigned the education sector to become technology-based in order to enhance skill acquisition for self-employment as well as encourage the youth to embrace agriculture as a profitable business venture. Moreover, honest effort should be made towards revitalizing the moribund and ailing industries in the state.
Victor E. Ita and John E. Bassey (2022) Rising Youth Unemployment and The Socio-Economic Realities in Nigeria: The Akwa Ibom State Experience, International Journal of Development and Economic Sustainability, Vol.10, No.4, pp.1-14
Keywords: Entrepreneurship, Self-employment, Unemployment, Youth, economic growth, social vices
Assessing The Socio-Economic Impact of Coronavrius in Africa (Published)
The looming health shock of coronavirus could have disastrous impacts on the continent’s already strained health systems, and could quickly turn into a social and economic emergency. This paper, therefore, intends to assess the effects of coronavirus on Africa economies. (using its growth implication) 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 with 32 selected Africa countries. Findings showed that coronavirus exhibited negative and substantial impact on socio-economic situation and macroeconomic variables in Africa such as inflation, unemployment, poverty rate and economic growth, amongst others. The result ascertained that the government expenditure significantly increased during the period in a bid to curb the pandemic, but household welfare degenerated and was negatively affected with high poverty rate, this paper recommended that the government of the Africa 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, support in the implementation of structural reforms to enable them to build capacity and generate sufficient domestic resources or fiscal buffers to effectively manage pandemics.
Keywords: Socio-Economic, and coronavirus, economic growth
Exchange Rate Fluctuations and Economic Growth in Nigeria (1981 – 2020) (Published)
This study examined the relationship between exchange rate and economic growth in Nigeria between 1981 and 2020. The specific objectives are to determine the effects of exchange rate, inflation and interest rate on gross domestic product (GDP). The data on the variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators, and analyzed using descriptive statistics, unit root as well as bounds cointegration tests and ARDL model. The unit root test results showed that the variables are mixed integrated. While inflation is stationary at levels, the other variables in the model were stationary at first difference. The bounds cointegration test showed that long run relationship exists between GDP growth and the underlying explanatory variables. The findings showed that exchange rate and inflation negatively impacted on economic growth. This finding indicates that increase in exchange rate and price level is detrimental to the growth of the Nigerian economy. There is evidence of a significant positive effect of interest rate on GDP growth. This finding explains the reality in Nigeria, where businesses and households tend to borrow even as interest rate increases, but tend to cut corners by reducing the quality of their products and services or pass-on the increased costs of borrowing to consumers by increasing prices. Given the findings, this study recommends amongst others that the federal government through the CBN should ensure that exchange rate policy should is consistent to provide opportunity for a realistic and stable exchange rate capable of driving economic growth in Nigeria.
Keywords: Exchange Rate, Inflation Rate, Interest Rate, economic growth
Public Expenditure, Official Development Assistant and Economic Growth: A Time Series Analysis for Nigeria (1981 – 2018) (Published)
In addition to divergent views of economists on the effect of public expenditure on economic growth, results of existing empirical studies in developed and developing economies has remained inconclusive and tends to depend on the period of study, econometric method, nature of data and the composition of government expenditure. In this study, public expenditure in Nigeria is decomposed into domestic and the foreign receipts components. The domestic component comprises capital expenditure (GCE) and recurrent expenditure (GRE) while the foreign receipts component captures foreign inflow of official development assistance (ODA). Employing extended aggregate production function framework and bound test approach (ARDL model), this study examined the impact of each of these three components of public expenditure (GCE, GRE and ODA) on economic growth in Nigeria for the period (1981- 2018). The findings of this study indicate the existence of a long run relationship between the macroeconomic variables estimated in the model. The recurrent expenditure (GRE) has positive impact on economic growth both in the short-run and in the long-run, countering the widely held view that government consumption spending is growth-reducing. The capital expenditure (GCE) and official development assistance (ODA) have negative impact on economic growth in Nigeria both in the short-run and long-run. The granger causality test result shows no causal relationship between GDP and GCE and between GDP and ODA, but a bi-directional causal relationship exists between GDP and GRE. It is recommended that greater percentage of public fund should be expended as capital expenditure and such fund should be properly utilized on acquisition of physical capital and social overhead capital like transportation, electricity, communication, irrigation, flood control, research and human capital development, capital formation in agricultural and industrial sectors to enhance the productive capacity of the economy. ODA in recent times has been unreliable source of finance in Less Developed countries, hence Nigeria should not heavily depend on it. However, whatever ODA is received should be properly utilized and channel into productive projects which have significant positive impact on economic activities and wellbeing of the populace. The fight against corruption in the country should be frontally confronted to free more public fund for collective development purposes in the country.
Keywords: Capital Expenditure, Nigeria, Official Development Assistance, Public expenditure, Recurrent Expenditure, economic growth
Trade Openness, Human Capital Investment and Economic Growth in Nigeria (Published)
The study examined the impact of trade openness and human capital investment on economic growth in Nigeria from 1981 to 2020 and employed error correction mechanism for the analysis. Economic growth was proxied by nominal gross domestic product. Human capital investment was decomposed into government capital expenditure on education, government recurrent expenditure on education, government capital expenditure on health and government recurrent expenditure on health while trade openness was measured by trade openness index. Exchange rate was used as check variable. The study carried out descriptive statistics test, Augmented Dickey-Fuller unit root test, Johansen co-integration test and Error Correction Mechanism (ECM) technique for the analysis. The result revealed that capital component of government expenditure on health and education were negatively related to national output during the period of investigation. However, the recurrent component of government on both health and education as well as trade openness were positively related to economic growth for the period. The study recommended among others that Government should increase funding in education and health sectors to meet the 20% to 15% benchmark recommended by UNESCO and WHO respectively and adopt the private sector model of payment that is based on milestone achieved in capital projects in both sectors.
Citation: Timothy Kabari Kerebana and Itode James Krama (2021) Trade Openness, Human Capital Investment and Economic Growth in Nigeria, International Journal of Development and Economic Sustainability, Vol.9, No.3, pp.57-71
Keywords: Human Capital Investment, economic growth, trade openness
Fiscal Deficit and External Debt: The Nigerian Experience (Published)
This study seeks to ascertain the impact of fiscal deficit on external debt in Nigeria with a focus on determining the long run relationship between fiscal deficit and external debt, as well as to ascertain the direction of causality between fiscal deficit and external debt. The model employed in this study is the Error Correction Mechanism; Granger causality test was used to ascertain the direction of causality. The time frame for this study spanned between the years 1981-2019. This study found that fiscal deficit is not a significant determinant of external debt in Nigeria. Also, the variables of gross domestic product, degree of openness, exchange rate was found to be insignificant factors determining external debt except inflation which was significant in determining external debt in Nigeria. Furthermore, there was neither a uni-directional nor bi-directional causality between external debt and fiscal deficit. Although, there is causality flowing from budget deficit and degree of openness as well as budget deficit and gross domestic product. However, it was suggested that policies be implemented that will enhance the channeling of funds from the external sector to productive sectors of the economy in order to ensure diversification and revenue generation thereby ultimately lessening the external debt burden that Nigeria is faced with. Finally, there is need for fiscal discipline and fiscal prudence if fiscal deficits would be a true determinant of the size of external debt accumulated in the country.
Citation: Shofade Oladapo Daniel and Kazeem Adebola Ibrahim (2021) Fiscal Deficit and External Debt: The Nigerian Experience, International Journal of Development and Economic Sustainability, Vol.9, No.3, pp.1-18
Keywords: Budget, External Debt, Fiscal Policy, economic growth, fiscal deficit
Effect of Vegetable Exports on Nigeria’s Economy (Published)
Nigeria’s heavy dependence on crude oil has rendered its economy vulnerable to fluctuations in world crude prices hence the intense prospect for exportation of cultivable vegetables to the global market in pursuant to the compelling need for Nigeria to diversify its economy. This study investigates the effect of vegetable exports on Nigeria’s economy from 1988 to 2018 with the new growth theory as its theoretical framework. Time series data were sourced from World Integrated Trade Solution (WITS), World Development Indication (WDI) and Central Bank of Nigeria (CBN) Statistical bulletin. The autoregressive distributive lag (ARDL) bounds testing technique and the error correction model were adopted for the study. Our results show that although the coefficient for vegetable exports was negative, it significantly impacted on Nigeria’s economic growth. More so, total agricultural exports had positive impact on economic growth. On this basis, we recommend that Nigeria should revisit its exports composition and pattern regarding all vegetable products and provide quality inputs so as to improve the quality and consistency in supply of vegetable exportables to the world market.
Citation: Ebele S. Nwokoye, Ekwutosi V. Ojukwu, Christopher U. Kalu, Amaka G. Metu (2021) Effect of Vegetable Exports on Nigeria’s Economy, International Journal of Development and Economic Sustainability, Vol.9, No.2, pp.23-38,
Keywords: Agricultural Export, economic growth, vegetable exports
A Cointegration Analysis Of Economic Growth And Co2 Emissions: Case Study On Malaysia (Published)
The paper aims to establish a long-run and causal relationship between economic growth, CO2 emissions, international trade, energy consumption, and population density in Malaysia. The study will use annual data from 1970 to 2014. A unique cointegrating relationship between our variables was identified, and the Environmental Kuznets Curve (EKC) hypothesis was analyzed using the Auto Regressive Distributed Lag (ARDL) methodology. Our empirical results suggest the existence of a long-run relationship between per capita CO2 emissions and our explanatory variables. The Vector Error Correction Model (VECM) methodology was used to analyze the Granger Causality, and the results show the absence of causality between CO2 emissions and economic growth in the short-run while demonstrating uni-directional causality from economic growth to CO2 emissions in the long-run.
Keywords: CO2 emissions (dependent variable), Environmental Kuznets Curve (EKC) Auto-Regressive Distributed Lag (ARDL), economic growth