Foreign Direct Investment, Portfolio Flows and Economic Growth in Nigeria (Published)
This research focuses on the impact of Foreign Direct Investment and Portfolio Flows on Economic growth in Nigeria. The research covers the period between 1980 and 2018. Secondary data were collected from the Central Bank of Nigeria statistical bulletin and various issues of World Bank Publications as well as Nigerian Bureau of Statistics (NBS) The period being understudied encompasses the period of massive government efforts to attract foreign investors into the country as well as period of turbulent macroeconomic indicators such as high unemployment and low level of per capita income in Nigeria. The parsimonious Error Correction Modelling (ECM) result shows that Foreign Direct Investment, Foreign Portfolio Investment, Labour force and Gross Fixed Capital Formation have a positive and significant impact on the level of Economic Growth in Nigeria. The Johanson cointegration test result shows a long-run relationship among Foreign Direct Investment, Foreign Portfolio Investment, Labour Force, Gross Fixed Capital Formation in Nigeria. The result from the variance decomposition reveals that shocks to Foreign Direct Investment, Foreign Portfolio Investment, and Labour Force and Gross Fixed Capital formation did not explain a significant proportion of the changes in economic growth in Nigeria within the period of the study. It was recommended that government should put in place policies to encourage foreign investors to go into the agricultural and manufacturing sectors which are key to job creation and for sustainable economic growth.
Keywords: Capital Flight, co-integrating relationship, economic growth, non-stationary variables, parsimonious model.
Effect of External Debt on Nigerian Economy, 1994-2015 (Published)
The study set out to investigate the effect of external debt on Nigerian economy. Time series data for twenty-two years that span from 1994 to 2015 were obtained and subjected to test using Ordinary least square regression (OLS) for the hypotheses formulated for the study. The study revealed some forms of long run relationship between Gross domestic product, on the one part and external debt, external debt service and export, on the other part but of particular importance is the long run marginal negative relationship between external debt and Gross domestic product. The study further confirmed causality, from predictors to dependent variable and recommended that there should be a ban on external debt in Nigeria, for some time. However, where external debt is unavoidably necessary for productive venture/investment that can boost export, it should be for such specific venture/investment and should be well managed to pay back the external debt and its associated service cost, thereby justifying the decision for such external debt without further stress on the economy.
Keywords: External Debt, economic growth, external debt service, value of export
Education and Economic Growth in South Asia (Published)
Interconnection between education and economic growth is a subject of great interest in most developing nations in the world today. This is because economic growth is one of the key indicators of the level of national development. In this study, regression analysis is applied to look into the genuine effects and the relationship between education and economic growth of the Southern Asian Countries such as Bangladesh, India, Nepal, Pakistan, Maldives, Bhutan and Sri Lanka. The methodology consists of the means of estimation and econometric analysis which help to determine the actual quantitative effects of education in economic growth especially in South Asian nations. By this, an affirmation of the relationship between the two variables can be made due to enough evidence obtained in this study.
Keywords: Education, GDP, Regression, South Asia, economic growth
Tertiary School Enrolment in Nigeria: Implication for National Development (Published)
The paper evaluates tertiary school enrolment in Nigeria: Implication for national development. The main aim of the paper is to assess the effect of tertiary school enrolment on economic growth in Nigeria. It is equally discovered that while tertiary enrolment is nominally increasing, in real terms, it is abysmally nose-diving. The analyses used for the study include the Ordinary Least Square estimation techniques, unit root test, co-integration test and the variance decomposition test to analyze the empirical model of the study. The findings of the empirical investigation confirm that tertiary enrolment is veritable tools through which appreciable economic growth can be enhanced in Nigeria. The study equally observed that tertiary school enrolment and government recurrent expenditures are statistically significant in explaining growth in the Nigerian economy. The paper therefore recommends among others that government should as a matter of urgency give immediate employment to all NCE graduate, this will encourage and increase the number of people seeking enrolment in the colleges
Keywords: Government Expenditure, National Development, capital expenditures, economic growth, recurrent expenditures, tertiary enrolment
Higher Institutions Funding and the Nigerian Economy (Published)
This study examines funding tertiary institutions and Nigerian growth perspective. The specific objective of the study is to evaluate the effect of tertiary institutions funding on national development in Nigeria. An ordinary least squares estimation technique was used in the study to evaluate the effect of the independent variables on the dependent variable. The result of experiment indicates that funding is a veritable tool for tertiary institutions growth in Nigeria. The result also shows that government capital expenditure funding is not statistically significant in the growth process. It was recommends that the government has to invest more on the education sector as well as ensuring that the resources are properly managed and used for the development of education services. The study concludes that funding of higher education in Nigeria needs to be improved upon especially in the area of capital expenditures funding. This is as a result of the increasing need and demand for specialized services in different sectors within the academic institutions.
Keywords: Budget, Education, Funding, Government Expenditure, Higher Institutions, economic growth
Impact of Disaggregated Public Expenditure on Economic Growth of Selected African Countries: A Panel VECM (Published)
The study investigated the long-run and short-run equilibrium relationship between economic growth and disaggregated public expenditure in selected West African Countries with panel data spanning 1990-2017. The study employed panel co-integration based on Pedroni and Panel Vector Error Correction Model (PVECM) with Engle and Granger´s procedure for empirical analysis. The findings revealed that expenditure on infrastructure, health and education have positive impact on economic growth at about 2%, 6% and 2% respectively, but only expenditure on infrastructure is significant. Defence expenditures and education expenditures at both lags have indirect and insignificant influence on economic growth while health expenditure has direct and insignificant impact on economic growth at all lags. The study recommends policy makers to focus on developing health, infrastructure and education sectors which has not contributed significantly enough to economic growth in the selected African countries
Keywords: Defence, Education, Health, Infrastructure, PVECM, economic growth
Education and Economic Growth in South Asia (Published)
Interconnection between education and economic growth is a subject of great interest in most developing nations in the world today. This is because economic growth is one of the key indicators of the level of national development. In this study, regression analysis is applied to look into the genuine effects and the relationship between education and economic growth of the Southern Asian Countries such as Bangladesh, India, Nepal, Pakistan, Maldives, Bhutan and Sri Lanka. The methodology consists of the means of estimation and econometric analysis which help to determine the actual quantitative effects of education in economic growth especially in South Asian nations. By this, an affirmation of the relationship between the two variables can be made due to enough evidence obtained in this study.
Keywords: Education, GDP, Regression, South Asia, economic growth
The Effect of Natural Capital on Economic Growth in Botswana (Published)
This study empirically analyses the effects of natural capital on economic growth in Botswana using annual data from 1994 until 2016. In contrary to the existing literature, the study employed the mineral asset value as a proxy for natural capital deduced from the newly developed Mineral Accounts and Macroeconomic Indicators of Sustainable Development Frameworks. This proxy provides the inclusive wealth index of natural capital by taking into account the estimated economic value of minerals in the ground and their depletion overtime. The Autoregressive Lag Model (ARDL) employed indicates that mineral asset value used as a proxy for natural capital significantly and positively affect Botswana’s economic growth. Other determinants of growth used as regressors including human capital and foreign direct investment also have a similar effect on economic growth over the period under review. Despite government efforts to diversify the economy from minerals, the mining sector is still the backbone of the economy. The study, therefore recommends that the country should continue using its mineral revenues to diversify its assets portfolio to improve physical and human capital to achieve sustainable economic growth. The country should also adopt a new growth model where technology will be at the forefront of economic development.
Keywords: Autoregressive Distributive Lag model, Mineral Asset Value, Natural Capital, economic growth
The Role of Fiscal Policy in Achieving Economic Stability in Jordan (Published)
The present investigation inspected the effect of fiscal approach estimated by (Government use, Government incomes, inward open obligation, outside open obligation) notwithstanding fares and swelling factors on the Jordanian GDP development. Fiscal approach assumes a huge job in a monetary arrangement because of its capacity to acknowledge objectives went for by a national economy. Its instruments are viewed as one of the primary financial devices to accomplish monetary development and beat obstructions to monetary soundness. Notwithstanding its distributional and pro impacts, financial arrangement has steadiness initiating impacts, for example, government spending and expenses which impact total interest, along these lines influencing in general monetary factors and financial development. The significance of fiscal arrangement radiates from the way that open spending is viewed as the prime drive for financial movement of a nation by affecting the dimension of total interest and subsequently monetary development. Open incomes fill in as the principle wellspring of salary for a nation while open obligation is a piece of the administration’s spending, regardless of whether inside or outer. This paper introduces a utilization of a hypothetical model to survey the impacts of monetary arrangement on financial development.
Keywords: Economic Stability., Fiscal Policy, Gross Domestic Product, Jordanian economy., economic growth
Capital Flight and the Nigerian Economy (1986-2016) (Published)
This study examined the impact of capital flight on the Nigerian economy from 1986-2016 Real Gross Domestic Product and Capital Flight were used as the endogenous variables while Political instability, Amount of Looted funds, Interest Rate Differentials, Expenses on Foreign Medical Services and Education Abroad and Domestic Investment were the explanatory variables. Data for these variables were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, World Bank Development Index, Economic and Financial Crimes Commission Bulletins, Tertiary Education Trust Fund Publications and the Federal Ministry of Information Annual Briefings and Extracts (various editions). The variables were found to be integrated of mixed order hence we confirmed the long run relationship existing among the variables using the Bounds test. The simultaneous equation model shows a negative and significant relationship between capital flight and economic growth. Domestic Investment and Interest Rate Differential both have positive relationships with Real GDP while Political Instability, looted Funds, Expenses on Foreign Education and Medical Services were found to have positive and significant impact on Capital Flight. The implication of these findings is that Capital flight have negatively impacted on Economic growth of Nigeria with Foreign Education and Medical Expenses and Looted Funds being the major channels through which huge capital leave the country. It was recommended that our education and health infrastructures should be adequately funded and maintained. Also, the government should ensure good governance and prosecution of corrupt officials in order to discourage capital and encourage domestic investments.
Keywords: Capital Flight, Interest Rate Differentials, Looted Funds, economic growth