Department of Economics

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    AGRICULTURAL PRICE DISTORTIONS AND THEIR EFFECTS ON THE NIGERIAN ECONOMY
    (Progressive Academic Publishing UK, 2015-02-02) Benedict Akanegbu, N
    This research examines the effects of agricultural Price Distortions on output in the agricultural sector of Nigeria. Specifically, the study tests the hypotheses that agricultural price distortions are inversely related to output growth in the same sector. The conclusiveness of all previous studies on this problem has not been without doubt largely because their analyses were based on multi-country cross-section data and aggregate price distortion indices. The present study seeks to overcome this failing by disaggregating the price distortions sector-wise for a single country, namely, Nigeria. The study adopts a model based on a modified neoclassical production function where agricultural exports are taken as inputs. Agricultural price distortions cause a wedge between the domestic and foreign price of agricultural exports and thereby reduce the volume of trade and, in consequence, the real GNP as well. And to derive consistent, unbiased, and efficient estimators of the structural equations, the model so developed was estimated by ordinary least square (OLS) method. The analysis confirms the view that agricultural price distortions have a significant and negative influence on agricultural output. An important implication of the study is that reforms of agricultural pricing policies should constitute a major component of any remedial program designed to accelerate economic growth in a country like Nigeria. If her agricultural sector is to become modern and efficient, they should be given the opportunity and the motivation to reduce costs. Indiscriminate reduction of the rate of protection and the reduction of the implicit taxes on exports alone are not the correct or adequate solution. Better physical infrastructure, better education and training, and more modernized agricultural experience can contribute to the ability to reduce costs and raise productivity.
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    Does Financial Integration Exist in ECOWAS?
    (Core, 2017-02-02) Matthew Oladapo Gidigbi; Benedict Akanegbu N; Modibbo Adama
    Free movement of goods, capital, and persons have been the long-term strategic goals of the Economic Community of West Africa States (ECOWAS) since its establishment. Notwithstanding, financial integration has become more important in deepening political integration in the region than ever. Assessing how far the Regional Economic Community (REC) has achieved her objective of free movement of capital among the member states. Therefore, this study investigated the existence of financial integration in ECOWAS by employing savings-investment equality, popularly known as Feldstein-Horioka Criterion; a panel data for all the 15 member states was fitted into the specified model. The study found that there is the existence of financial integration in the REC, and that language inhibits financial integration and that the coefficient of language dummy stands at -4.8 percent. However, it found that language inhibition of the financial integration in the REC will gradually disappear over time, as the interactive coefficient of language and time stands at - 0.12 percent. This study concludes that a level of financial integration is in existence in the REC. Therefore, the REC is prepared for monetary unification assuming that there will be more substantial trade among the member states.
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    Effects of Economic Growth on Poverty Reduction In Nigeria
    (IOSR Journal of Economics and Finance (IOSR-JEF), 2018-02-02) Oyegoke Ebunoluwa; Wasiu Yusuf
    This paper explored the effect of economic growth on poverty reduction in Nigeria using a time series data spanning from 1980-2016. Unit Root and Johansen Cointegration tests were carried out to determine stationarity and long-run relationship among the variables respectively, while the VAR was carried out to determine the effect of Government expenditure, unemployment growth rate and Real GDP on poverty incidence. The result shows that Government expenditure is positively related to poverty incidence. This suggests that the poor are not benefitting from the economy at large, especially from total government expenditure. The GDP coefficient (a proxy for economic growth) conforms to the a-priori expectation, which depicts a negative relationship between economic growth and poverty incidence, while unemployment relates positively to poverty reduction. Therefore, the government should work more on job creations by focusing more on the labour -intensive sectors, basically, Agricultural and Industrial sectors. Also, economic growth and government spending should be directed at the pro-poor projects, mostly the Bottom-40 percent by providing the essential amenities, especially good infrastructures, financial benefits and aids to families with dependant children, and old people, also, medical aids should be available for the poor
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    Informal Financial Institutions (IFIs) and Investment in Nigeria
    (Published by Department of Economics, IBB University Lapai, Niger State, Nigeria, 2018-02-02) Mohammed Yelwa; Awe Emmanuel; Umar Musa
    Small and Medium Enterprises (SMEs) occupy a central place in the economic growth of nations. SMEs have a fundamental role to play in the development of an economy and this cannot be over emphasized. SMEs serve as training arena for local skills and entrepreneurs, and could become channels for mobilizing local savings, ensuring a more equitable distribution of income and reducing the migration of manpower from the rural to urban areas. On this note, ggovernment has identified the need for the development of SMEs. One of such Sectorial strategies is the introduction and pursuit of policies such as concessionary financing to encourage and strengthen the growth of SMEs in Nigeria. However, a well-functioning and regulated informal economy will be a critical prerequisite to sustainable growth. This is because the link between, informality and Investment in Nigeria is not fully understood. This study seeks to investigate the nexus between Informal Financial Institutions and Investment in Nigeria. A binomial Logit Linear Regression approach was employed with data from structured questionnaires having Investment and repayment plan as variables. The finding revealed that the odd ratio of investment against the IFIs chance of alleviating poverty in north central-states-Nigeria is 2.21. The study therefore concluded that there exists a significant relationship between IFIs and Investment in north central Nigeria. The study recommends among others that there is the need for the government to utilize Informal Financial Institutions in its poverty reduction programmes, since about 75 percent of the Small and Medium scale Enterprises (SMEs) could assess credit for investment through them. This will go a long way in promoting inclusive growth in the country
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    INFORMAL FINANCIAL INSTITUTIONS' CREDIT AND POVERTY ALLEVIATION IN NORTH CENTRAL-NIGERIA
    (Lafia Journal of Economics and Management Sciences, 2018-02-02) Mohammed Yelwa (PhD); Obansa S.A.J (PhD); Awe Emmanuel Omoniyi
    This study seeks to investigate the link between Informal Financial Institutions' Credit and Poverty Alleviation in North Central States Nigeria. A Binomial Logit Regression approach was employed with data from structured questionnaires having IFIs credit and SMEDEV as variables. The finding revealed that there is a significant impact of Informal Financial Institutions' Credit and poverty alleviation in north central-states-Nigeria. The study therefore concluded that there exists a significant relationship between IFIs credit and poverty alleviation in north central-Nigeria.The study recommends among others that education of the rural poor to embark on viable projects, disbursement of fund through Informal Financial Institutions (IFIs) and favorable government policiesso asto make the sector becomesrelevant.
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    Labour Force Participation and Economic Growth in Nigeria
    (Scientific Press International Limited, 2020-02-02) Muhammad M. Yakubu; Benedict Akanegbu N; Jelilov G
    This paper has examined empirically the effect of labour force participation on economic growth in Nigeria. Time series data for both the dependent and independent variables were sourced from World Bank Development Indicators 2018 database for the period 1990-2017. Johannsen’s Cointegration, and Vector Error Correction model (VECM) econometric tools were used. Finding shows that the variables have long-run relationship and also long-run causality was found running from LFPR and GFCF to RGDP. The study recommends that it is necessary for policy makers to address the problems of unemployment and gender inequality in employment.
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    Oil price volatility and economic growth in Nigeria
    (Scientific Press International Limited, 2019-02-02) Muhammad M. Yakubu; Benedict Akanegbu N
    One of the main causes of economic crisis in the world is Oil Price Volatility (OPV). This makes it necessary to examine the effect of oil price volatility on economic growth in an oil exporting country like Nigeria and this has a special significance. Therefore, this paper has examined empirically the effect of oil price volatility on economic growth in Nigeria using annual time series data from 1985 – 2016. The findings revealed that OPV has a negative and insignificant effect on economic growth in Nigeria. It was also found that the variables used in the study have a long-run relationship and finally no evidence of causality was found between oil price volatility and economic growth in Nigeria. The study recommends that exploring other alternatives has the potential to make the Nigerian economy stronger to face volatility crisis.
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    Public debt and economic growth in the West African monetary zone (WAMZ)
    (Elsevier, 2024-02-02) Dinci Jessica Penzin; Benedict Akanegbu N
    In this paper, we revisit the relationship between public debt and economic growth with a spotlight on the West African Monetary Zone (WAMZ). In the re-examination, we pursue three undertakings using both panel data and time series modelling techniques. First, we examine the linear relationship using the Autoregressive Distributed Lag (ARDL) model for time-series data and the fixed (or random) effect model for the panel data counterpart. Second, we assess the nonlinear relationship by incorporating the squared term of the debt variable as an additional explanatory variable in the models. Third, we identify the level of public debt/GDP ratio beyond which public debt becomes unsustainable using threshold regression techniques. The findings show a negative relationship across the linear models. We also establish that the debt-economic growth relationship is non-linear, and we obtain the points of inflection for the WAMZ countries. These levels are 71.9 % for Gambia, 55.8 % for Ghana, 91.5 % for Guinea, 83.7 % for Liberia, 38.45 % for Nigeria and 38.6 % for Sierra Leone. We make suggestions for the WAMZ countries to expand their economic bases by channelling funds to infrastructure development and the development of human capital in order to optimize the benefits of debt accumulation in the long run.
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    THE IMPACT OF INTERNATIONAL TRADE ON ECONOMIC GROWTH IN NIGERIA
    (Progressive Academic Publishing, UK, 2015-02-02) Muhammad M. Yakubu; Benedict Akanegbu N
    There has been a long held belief that there is a positive relationship between economic growth and increased levels of international trade. Therefore, this paper has empirically examined the impact of international trade on economic growth in Nigeria for the period 1981 to 2012. Using degree of openness to proxy international trade, the ordinary least squares technique was employed to estimate the impact of international trade on Gross Domestic Product. The broad objective of this paper is to analyze the impact of international trade on economic growth in Nigeria based on time series data on variables considered relevant indicators of economic growth and international trade. The analysis was based on data extracted from World Bank data and Central Bank of Nigeria Statistical Bulletin. The result of the analysis shows that all the variables except interest rate were statistically significant. Therefore, the study recommends that policy makers should adopt policies on trade liberalization such as reduction of non-tariff barriers, reducing tariffs, reducing or eliminating quotas that will enable the economy to grow at spectacular rates. And thus this study supports the proposition that degree of openness has direct robust relationship with economic growth since the proxy variable is positive and statistically significant in the model.