Olarinde Muftau O.

Purpose. Industrial development is crucial in converting all resources to humanity’s use and benefits. Economists observe that the development and utilisation of the industrial sector are essential in a country’s economic growth. Disaggregating the industrial sector into various components, this paper empirically analyses the performance of the industrial sector on economic growth in Nigeria over the 1970-2015 period. Hence, to evaluate the relationship between industrial development and economic growth in Nigeria. Design/Methodology. The paper adopted autoregressive distributed lag (ARDL) as the technique of data analysis. Findings and implications. The results further revealed that the coefficients of all industrial subsectors, such as manufacturing, solid minerals and crude petroleum and gas, have positive and statistically significant influences on economic growth in both the short and long run. Among the industrial subsectors, the crude petroleum and gas sector appears to be th...

This paper is a survey of literature on the distinction between the Dividends Preference theory and the Dividend irrelevance paradigm concerning the welfare of shareholders of firms in Nigeria. In order to achieve the objective of the paper, it delves into the works of three among the numerous theorists of the dividend preference school namely, (Litner, 1956, 1959, and 1962), (Gordon, 1959, 1962) and (Walter, 1963). The Dividend Irrelevance paradigm, on the other hand, centers on the joint works of (Modigliani and Miller hypothesis, 1961) with intents to establishing a theoretical basis for the study. The pertinent question is whether, full payments of dividend to shareholders with no tax burden would not affect the value of the firm? (Siddiqi, 1998) quoting (Modigliani,1982) argued that “In the absence of dividend, a higher effective tax rate on dividends than on capital gains leads to a price drop on the ex-dividend day that is less than the amount of the dividend. The paper views...

This paper investigates the impacts of institutions and trade policies on Global Value Chains (GVCs) participation in ECOWAS. Leveraging on the New Trade Theory as a theoretical framework, the study estimates a gravity model consisting of 15 ECOWAS members’ countries for the period 2000–2018. The paper control for the possible endogeneity and other econometrics issues like heteroskedasticity and autocorrelation by adopting Poisson Pseudo-Maximum Likelihood estimation method. The results revealed that institutions significantly enhance GVCs participation, this positive impact was maintained even when it was disaggregated into various subcomponents. The result, however, revealed that tariffs on intermediates, infrastructures, and technology are harmful to GVCs participation in the West African region, while the impact of RTAs on GVC participation has been mixed. This implicates the objective of improving GVCs among West African States through the formation of RTAs is dependent on the ...

The paper examines Corruption and Challenges of Sustainable Inclusive Growth in Nigeria. The paper adopts the theory of two publics as its framework of analysis. The theory explains the prevalence of corruption between and among public servants in Nigeria, which affects the attainment of sustainable inclusive growth. Corruption in Nigeria is caused by lack of accountability, transparency and good governance; poor leadership; monopolization of power by government officials; the utilization of discretionary powers by politicians and bureaucrats over the formulation and implementation of the rules and regulations and allocations of projects. Using system equation ordered by variables the paper revealed an indirect link between corruption and poverty and a significant negative impact on the attainment of inclusive growth in Nigeria. The test of causality using Wald test also revealed that there is a unidirectional causality running from corruption to inclusive growth. The paper therefor...

This study empirically analyses the impact of corruption on economic growth in Nigeria, using time series data for the period 1980-2015 analyzed through the ARDL technique.  The result of the Bound test confirmed the existence of Cointegration among the variables. The ARDL results revealed that corruption has a significant negative influence on economic growth both in the short run and long run. It was further confirmed that external debt, agricultural output, and human capital development positively impact growth while FDI and inflation rate endanger growth, in both the short and long run. The result of the interacting term revealed the damaging influence of corruption on the positive impact of human capital expenditure and external debt on economic growth. Based on the findings of the study, it is obvious that achievement of growth that is sustainable will remain elusive in a corrupt environment. The study, therefore recommends that government should strengthen the activities of t...

COVID-19 pandemic infests every sphere of life, including the economy, thereby accounting for tremendous economic calamities on a global scale. Some of such calamities are still evolving. This paper examines the economic impact of COVID-19 with particular emphasis on Nigeria within the early days of the pandemic. The article established its theoretical foundation through a marriage of both AK-type of endogenous growth theory and endogenous growth model with an assumption of increasing returns to scale. Using a simple descriptive technique, the article identified the devastating economic impacts of the pandemic on the oil-dependent economy in the short run. The paper identifies four fundamental COVID-19 economic shocks; the declined price of oil; unplanned increase in health spending, temporary shutdown of the local economy; and unanticipated palliative needs. Some of these impacts also include loss in income and output, increasing rate of unemployment, and poverty contributing to th...

This study investigates the effects of institution and macroeconomic policy on economic growth in Africa, using panel Cointegration technique to analysed data obtained from a panel  of 50 African Countries covering a period of 25years (1990-2014). The results confirm that declining growth rate in Africa is due to poor management of macroeconomic policies. A weak turning point is also confirmed to exist for government size in the short run; in the long run it becomes more pronounce. The Wald restrictions tests of causality ascertain that institutions lead economic growth performance in the short run, while poor economic growth performance impaired the capacity required in building strong institutions which in turn stunts growth in the long run. Therefore, African leaders should tilt their expenditure in favour of human capital development and strong institution, ensure intra-regional trade and adopt private sector led – economic growth strategy.

Purpose The purpose of this study is to examine the role of institutions and policies on growth convergence in Africa. Design/methodology/approach This study uses different methods of panel modelling on a panel of 50 African Countries covering a period of 1990-2014. Findings The results confirmed the presence of conditional convergence among countries in the region. On the average, technology accumulation and fiscal policies indicators are positive function of growth, while human resources, monetary policies indicators and ineffective institutions partly necessitated by poor level of development negatively impact growth. The study concludes, though traditional growth variables and policies are imperative in achieving growth in income, they remain insufficient in an environment characterize by extractive and absolutist institutions. Therefore, institution remains the link that bridges the gap in between proper mix of resources and policies. Research limitations/implications Based on ...

The paper assesses human capital development in Nigeria through the lens of education. The study used education as proxy to capture human capital, while utilizing secondary sources of data. There is evidence that human capital development in Nigeria is inadequate and unable to galvanise the economy towards long-term stable growth. Emphasis should be placed on deliberately developing the country’s vast human resources, with particular reference to the country’s educational spectrum, if the goal of poverty alleviation, employment generation and wealth creation, all encapsulated in various policy documents over the years, are to be achieved.