EGBETUNDE TAJUDEEN
Publication
This study investigates the role of cashless policy in the demand for money in Nigeria using Vector Error Correction Model (VECM) technique. While both the long-run and short-run results converge, the trends and patterns of cashless policy instruments in Nigeria show that the Automated Teller Machine (ATM) remains attractive to Nigerian people while the use of internet banking transactions oscillates, perhaps, due to poor internet infrastructure and the problem of cyber insecurity. However, the findings suggested that the cashless policies of ATM and POS impact negatively on the demand for money in Nigeria. Also, the weighted average interest rate and the exchange rate aligns with the theoretical proposition of negative relationship with money demand while inflation, government expenditure, real GDP and web transfer impact positively on money demand in Nigeria in the long run. These findings also mirror the short-run situation. Consequently, it is recommended that an aggressive internet infrastructure, enactment of stringent cyber-crime laws and regulations and existing ones are being implemented while low lending rate should be promoted by the Central Bank of Nigeria.
This study examines the effect of population growth on unemployment persistence in Nigeria and the consequential impacts of both on development outcomes in Nigeria for the period 1970-2012. Beginning with the stationarity of the variables; we employ battery of test such as the granger causality test and various descriptive statistics were performed to investigate these relationships. The major technique of analysis is the AutoRegressive Distributed Lag (ARDL) Bound test for long-run impacts and equilibrium conditions while we re-parametised the model for short-run impact analyses. We found that there exists persistence unemployment (hysteresis) in Nigeria and that; due to the acceptance of the null hypothesis that population growth do not granger causes unemployment; we obtain an evidence that population growth does not play a role in the persistence of unemployment (hysteresis) in Nigeria. More so, our results show that age structure does not matter for development outcomes and that Nigeria is not yet undergoing demographic transition. Interestingly, the results further show that unemployment is a causal factor for population growth and the otherwise does not hold while population growth serves as a demographic gift for development outcomes in the short-run but negatively negligible in the long-run situation. We, therefore, recommended policies and programmes that will improve on the absorptive capacity, engender entrepreneurial abilities and promote prudent economic resources and sound fiscal policy management of Nigeria.
The paper investigates the investment – growth nexus in Nigeria, for the period 1981-2012. Using the Vector Error Correction Model (VECM), the study ï¬nds that investment is cointegrated with economic growth in the country; that is, there is a long run relationship between investment and economic growth in Nigeria. The results further show that investment Granger causes economic growth in Nigeria. The paper argues that there is need for the government to invest heavily through appropriate mechanism, strong institutions and macroeconomic policies in order to result to economic progress and sustainable development in the country.
The paper examines the impact of financial integration on economic growth in sub-Saharan Africa (SSA). Using a dynamic panel Generalised Method of Moment (GMM), the paper finds that financial integration had a negative and significant impact on economic growth in SSA. The results also reveal that institutional quality had a negative and significant impact on economic growth in SSA. The results of the paper further show that financial development had negative impact on economic growth in the region. The paper concludes that the economies did not reap the benefits of financial integration. The government in the region needs to put in place appropriate macroeconomic policies and institutions that will drive the benefits of financial integration in order to sustain economic development.
This study investigates hysteresis in unemployment in Nigeria andexamines the role that monetary policy plays in the persistence level ofunemployment in the country. The technique of analysis is the structuralvector autoregression (SVAR), and the annual time series data set usedspans 1970-2013. Monetary policy is accommodated within thebackward-looking Phillip curve proposed by Friedman (1968) to relatethe new forward-looking Phillip curve advanced by Ball (1999, 2009).Series of descriptive statistics are used coupled with unit-root andstationarity tests that suggest the persistence level of unemployment inNigeria. The unemployment hysteresis is also confirmed within the SVARframework, going by the effect that the actual unemployment rate has onits equilibrium level. The results from the SVAR models further show thatbetter compensation packages will reduce the spate of unemployment inNigeria, and thus a need for labour market reform. Also, it was observedthat the inflation-targeting objectives of the Central Bank of Nigeria forthe period under review have not hampered sustainable employmentgeneration but that the spate of money supply, and consequently theaggregate demand have reduced the level of unemployment, albeitinsignificantly. Hence, monetary policy is found to play a non-neutral butinsignificant role in the long-run situation. This submission of money.
The study examines the long run and causal relationship between both stock market development and economic growth in Nigeria using annual data from 1980-2010. Vector Error Correction Model (VECM) and Cointegration technique of analysis were employed to analyze the data and draw policy inferences. The study found that stock market development as well as banking activity was cointegrated with economic growth in Nigeria. That is, there is a long run relationship among these variables in Nigeria. The result from VECM showed that economic growth granger causes both stock market development and banking activity in Nigeria. The study therefore, strongly recommends that policy makers should lay emphasis on the economic growth through the appropriate regulatory and macroeconomic policies to remove all constraints to the acceleration of the sustainability of economic growth and development in Nigeria.
This paper analyses the impact of public expenditure on economic growth in Nigeria during the period 1970 to 2010 making use of annual time series data. The study employs the bounds testing (ARDL) approach to examine the long run and short run relationships between public expenditure and economic growth in Nigeria. The bounds test suggested that the variables of interest put in the framework are bound together in the long-run. The associated equilibrium correction was also significant confirming the existence of long-run relationships. Our findings indicate the impact of total public spending on growth to be negative which is consistent with other past studies. Recurrent expenditure however was found to have little significant positive impact on growth. Therefore, government should increase its spending on infrastructure, social and economic activities.
