Economics
Permanent URI for this communityhttps://repository.ibadanedu.com/handle/123456789/293
Browse
9 results
Search Results
Item Financial System Development and Economic Growth in Sub-Saharan Africa(West African Institue of Financial Economic Managemnt, 2016) Egwaikhide, F. O.; Oyinlola, M. A.; Omisakin, O.; Adeniyi, O. A.This paper contributes to the age-old debate on the link between financial development and economic growth by examining the role of monetary policy. There is a possibility that monetary policy enhances financial system performance with attendant impact on growth. To unveil this influence, this paper employs fixed effects and System GMM on data from 28 sub-Saharan African countries over the period 1996 to 2014. Results from the baseline estimation using fixed effects indicate that financial development indicators are negatively and significantly associated with growth for two of the three measures used (LGDP and PGDP), while money growth is positively related albeit insignificantly. The results largely remain the same on interaction with money growth. The coefficients of the interactive terms though largely negative are, however, not significant. The results from System GMM presents a different outcome. First, all measures of financial development turn out positive (except BBD) and insignificant. Financial development equally turns negative but insignificant after interacting with money growth. Overall, monetary policy measures, together with their interactions with financial development indicators, show up as weak growth predictors if not dampening, suggestive of the plausible independence of the nexus on the actions of monetary authorities in these countries.Item Financial System Development and Economic Growth in Sub-Saharan Africa(West African Institue of Financial Economic Managemnt, 2016) Egwaikhide, F. O.; Oyinlola, M. A.; Omisakin, O.; Adeniyi, O. AThis paper contributes to the age-old debate on the link between financial development and economic growth by examining the role of monetary policy. There is a possibility that monetary policy enhances financial system performance with attendant impact on growth. To unveil this influence, this paper employs fixed effects and System GMM on data from 28 sub-Saharan African countries over the period 1996 to 2014. Results from the baseline estimation using fixed effects indicate that financial development indicators are negatively and significantly associated with growth for two of the three measures used (LGDP and PGDP), while money growth is positively related albeit insignificantly. The results largely remain the same on interaction with money growth. The coefficients of the interactive terms though largely negative are, however, not significant. The results from System GMM presents a different outcome. First, all measures of financial development turn out positive (except BBD) and insignificant. Financial development equally turns negative but insignificant after interacting with money growth. Overall, monetary policy measures, together with their interactions with financial development indicators, show up as weak growth predictors if not dampening, suggestive of the plausible independence of the nexus on the actions of monetary authorities in these countries.Item Structural Breaks and the Finance-Growth Hypothesis in ECOWAS: Further Empirical Evidence(Eastern Macedonia and Thrace Institute of Technology, 2014) Omisakin, O.; Adeniyi, O. A.This study makes a cross sectional case in investigating the validity, or otherwise, of the finance driven growth hypothesis in the ECOWAS countries using annual data from 1970 to 2008 for seven countries namely: Burkina Faso, Cote d’Ivoire, The Gambia, Ghana, Nigeria, Senegal and Togo. In contrast to earlier studies on developing countries, this study specifically tests for the possibility of structural breaks/regime shifts in the finance-growth long run relationship by employing the Gregory and Hansen (1996) residual based test which accounts for endogenous structural break. While the Gregory-Hansen structural break cointegration result confirms the existence of cointegration relationships among the selected countries despite the breakpoints, the Granger-causality test result indicates a general pattern of causality running from financial development to economic growth in most of the countries. Also, the striking feature of the result of our estimated growth model generally lends credent to the importance of financial development in explaining growth dynamics among the selected countries, thus reinforcing the finance-driven growth hypothesis.Item Does Governance Impact on the Foreign Direct Investment-Growth Nexus in Sub-Saharan Africa?(Economics Faculty Zagreb, 2014) Ajide, K.; Adeniyi, O. A.; Raheem, I. D.The central question this paper sought to tackle was “does the quality of institutions matter for the relationship between Foreign Direct Investment (FDI) and economic growth?” Using macroeconomic data on 27 Sub Saharan African (SSA) economies and six distinct measures of governance the findings showed that control of corruption, political stability and government effectiveness matter for the influence of FDI on economic growth in SSA. This key finding was found to be robust even in models where these three governance indicators were interacted with FDI. Furthermore, the results from threshold-type sample splitting showed that in the sample containing countries with a higher level of governance, the positive impact of FDI on growth has larger magnitude vis-à-vis the comparator group with poorer governance indicators. This significant threshold effects remained robust across specificationsItem Deforestation and economic growth in Nigeria: empirical analysis(2022) Oyeranti, O. A.; Taiwo, O. F.This study investigates the economic growth-deforestation nexus with a view to ascertaining the existence of the environmental Kuznets curve (EKC) in Nigeria. The study deployed the Autoregressive Distributed Lag (ARDL) model and the Nonlinear Autoregressive Distributed Lag (NARDL) model. The variables used are net forest depletion (dependent) against real gross domestic product per capita, energy use per capita, agricultural raw materials export and agricultural land (independent). All data used were sourced from the World Development Indicators Data Bank (2019). Findings from the ARDL invalidated an inverted U-shaped EKC both in the short and long run estimations. However, when the analysis was carried out at the level of the NARDL model, the results indicated an inverted U-shaped EKC, suggesting that a nonlinear relationship should be acknowledged between deforestation and economic growth in Nigeria. The key recommendation of this study is that exploitation of forest resources must be consciously managed.Item Economic growth and carbon dioxide emission in Nigeria(Academic Staff Union of Universities (ASUU), Nigeria, 2021-12) Oyeranti, O. A.Environmental degradation measured by CO2 emissions is a significant challenge to sustainable economic development. Owing to the significant impact of the empirical relationship between economic growth and CO2 emissions, this study examined the relationship between economic growth and carbon dioxide emission with a view to testing the validity or otherwise of the Environmental Kuznets Curve (EKC) in Nigeria. Using Autoregressive Distributed Lags (ARDL) approach, the study employed data on trade openness, electricity consumption, population and the square of GDP as control variables in the analysis for the period 1970 to 2018. The result showed that electricity consumption and trade openness have a negative and significant relationship with CO2 emission, while population growth has a positive but insignificant impact on CO2 emission. This insignificant impact of population growth can be linked to the lower income of the populace. However, the estimated coefficient of the square of income is negative, while that of its level is positive and thus supports the existence of EKC in Nigeria. Increasing the degree of openness to international trade along with appropriate trade policies will contribute to the Nigerian economy as openness leads to the reduction of pollutants in the environment. Adoption of mixed energy consumption, especially through hydroelectricity and solar system, will drastically reduce the rate of carbon emission in Nigeria regarding the fact that Nigeria is well endowed with these resources.Item External debt accumulation and economic growth: evidence from West African countries(Faculty of The Social Sciences, University of Ibadan, Ibadan, 2015-03) Lawanson, A. O.This paper investigates how indebtedness has affected the growth of 14 West African countries directly, and via investment and fiscal balance mechanisms, using data from 1970 to 2012. This task was approached through a standard growth framework through which debt indicators were incorporated. Two econometric specifications (linear and non-linear.) were used, and evaluated with the fixed effects and GMM estimation techniques on the relationship between debt and growth. The hypothesis that external debt affects growth is well-supported by the results. All debt variables have the expected signs and were statistically significant. The results reveal that debt appears to have a non-linear effect on growth. The debt overhang hypothesis is affirmed, given the existence of a threshold beyond which debt negatively contributed to growth. The average impact of debt on per capita growth becomes negative for debt levels above 60% to 74% of GDP. Thus, increasing debt beyond this threshold yields a negative marginal contribution to growth. There is a pressing need to take measures to not only stabilize external debts, but to place them on a downward trajectory in the future.Item Economic growth experience of West African region: does human capital matter?(Center for Promoting Ideas (CPI), USA, 2015-12) Lawanson, A. O.This paper empirically investigates the relevance of educational and health components of human capital to economic growth, using a panel data from sixteen West African countries over the period 1980 to 2013. GDP per capita is linked to health and education capital while accounting for population growth, physical capital, trade openness, and other growth control variables. To correct for endogeneity and other estimation problems this paper employs Diff-GMM dynamic panel technique. Empirical findings indicate that coefficients of both education and health have positive statistically significant effects on GDP per capita. The paper affirms the strong relevance of human capital to economic growth of West Africa. It is recommended that increased resources and policy initiatives to motivate and enhance access to both health and education by the population should be pursued by policy makers.Item ANALYSIS OF THE IMPACT OF ECONOMIC AND POLITICAL INSTITUTIONS ON ECONOMIC GROWTH IN AFRICA(2012-10) KILISHI, A. A.The importance of economic and political institutions to economic growth has been demonstrated in the literature. However, little is known on how such institutions impact on growth and what determine the quality of economic institutions in Africa. Therefore, this study was aimed at examining the impact of economic and political institutions on growth as well as the impact of political transition on the quality of economic institutions. Game theory was used to develop a political economy model that incorporated institutional variables into the neoclassical Solow growth model. This model described the interactions among political power (de-jure and de-facto powers), institutions and economic growth. The model was empirically tested using data drawn from 29 African countries covering the period 1996 to 2009. The selection of countries was guided by availability of data and they spread across the continent. Indexes of economic and political institutions were computed from the World Bank’s governance indicators and the Polity IV database. The Ordinary Least Squares (OLS), fixed effect and Generalized Methods of Moments (GMM) techniques were used to test the impact of economic and political institutions on economic growth. A treatment analysis was also employed to test the impact of political transition on the quality of economic institutions and growth. Strong economic and political institutions had significant and positive impacts on economic growth. Countries with higher institutional qualities are found to be growing faster while those with lower quality grow slower. Generally, a 1.00% increase in the indexes of economic and political institutions led to 0.44% and 0.55% increase in economic growth respectively. However, the impacts of the two indexes differed across different sub-regions. The impact of economic institutions on growth was highest in the Southern African countries with a coefficient of 0.78% and lowest in West Africa with a coefficient of 0.20%. An increase in the index of political institution had the highest impact in the Central African countries and lowest in North Africa. Specifically, political institution was found to aid growth in Central Africa by 1.19% while it slowed down growth in North Africa by 0.49%. Countries that transited to democracy recorded 1.28% improvement in their quality of economic institutions and they grew about 0.51% faster than their pre-transition era. However, for countries where political elites persisted in power after the transition, the quality of economic institutions declined by 1.10% and they experienced a lower growth rate of 0.16%. Improvement in the quality economic institutions promote growth. Competitiveness of political system improved the quality of economic institutions and growth, while elites’ persistence in power reduced the two. Economic growth in Africa can be improved by building and strengthening institutions as well as promoting competitive democracy.