Papers by Tunji Babatunde
Journal of International & Global Economic Studies …, 2009
This study examines the response of merchandise export to real exchange rate-based trade liberali... more This study examines the response of merchandise export to real exchange rate-based trade liberalization in Sub-Saharan Africa between 1980 and 2005. This is because the last two decades have witnessed a significant fall in trade barriers across many SSA countries in an attempt to boost exports and foster economic growth. The panel least squares estimation technique was adopted for the study. In addition, heterogeneous panels for the four sub-regions (West, East, Central and Southern Africa) of SSA are estimated using time/series cross-section technique. The main findings are that trade liberalization can stimulate export performance albeit marginally and indirectly. Trade liberalization stimulates export performance through increased access to imported inputs. In addition, evidence revealed that a more competitive and stable real effective exchange rate can stimulate export performance. The impact of trade and exchange rate policy reforms also vary across the four sub-regions of SSA.
Asian Journal of Humanities and Social Studies, 2018
This study investigated the propensity to consume higher education abroad by Nigerian students wi... more This study investigated the propensity to consume higher education abroad by Nigerian students within the context of the General Agreement on Trade and Services. This was carried out to understand the extent to which different factors under certain rationale influence the decision of students to study abroad. Employing the factor analysis technique, the empirical analysis revealed that the underlying factors that drives the consumption of higher education abroad cut across personal, price, domestic educational issues, parental influence and academic reasons. Prospective candidates mostly decided to study abroad because of the available opportunities that enhance their career prospects through acquiring high quality education with qualifications that are globally recognized given the current challenges being witnessed in the Nigerian educational sector.
Journal of economics and sustainable development, 2017
This study investigated the relationship between trade openness and inflation in Nigeria between ... more This study investigated the relationship between trade openness and inflation in Nigeria between 1980 and 2015. It employed the nonlinear auto-regressive distributed lag (NARDL) modelling approach to co-integration based on the standard theoretical and empirical literature on trade openness-inflation relationship. Our approach allows us to simultaneously test the short- and long-run nonlinearities through positive and negative partial sum decompositions of the predetermined explanatory variables. Empirical evidence revealed that the direction of the relationship between openness and inflation is time specific. While there is a significant positive long-run relationship between inflation and trade openness, the analysis in contrast found a strong and robust negative link between openness and inflation in the short run. In addition, the obtained results indicate that trade openness affect inflation in an asymmetric and nonlinear manner. The results were found to be robust to different...
The study examined the long-run equilibrium relationship between inflation, money supply on econo... more The study examined the long-run equilibrium relationship between inflation, money supply on economic growth in Nigeria. The ECM model and Co- integration test were used and five variables such as of economic growth, broad money supply, inflation, real exchange rate and real interest rate were used for the study. The variables were tested for unit root using the Augmented Dickey-Fuller approach and were found to be stationary at levels and first difference. The co-integration and error correction mechanism were carried and the findings were: Broad money supply has positive and significant impact on economic growth. This implies that when central bank increases money supply with inflation checking, it will in turn lead to increase in economic growth in Nigeria. Inflation has a negative impact on economic growth in Nigeria. This implies that an increase in inflation will lead to a decrease in economic growth and also the result shows that it is statistically significant. Real exchange ...
China’s investment activities in Africa have attracted significant interest in academic, policy a... more China’s investment activities in Africa have attracted significant interest in academic, policy and media circles in the last one decade. Adopting country case studies analysis, findings indicated that Chinese investment relations with Africa have its good, bad and ugly sides. On the good side, China has established special economic zones which have the potential to build economic linkages with the local economy. However, the linkages are mainly forward, involving logistics, forwarding, and insurance and financial services. Backward linkages are fostered to the extent that the Chinese firms contract out transportation and catering services for their employees and sub-contract with local firms. The bad side includes the limited employment quota for local citizens, poor labour standard, limited technology transfer, and the quality of Chinese construction. The ugly side includes tax evasion and support to dictatorial regimes in Africa. Chinese companies should be well controlled and th...
The Indian Economic Journal, 2011
This paper estimates an inflation model for Nigeria by examining the existence of a significant l... more This paper estimates an inflation model for Nigeria by examining the existence of a significant long-run relationship between inflation and bank lending and to identify the main economic fundamentals that influence the relationship as well as other variables that determined inflation between 1980 and 2008. We make use of the bounds testing approach to cointegration within an autoregressive distributed framework, suggested by Pesaran et al., (2001). In the long run, we find that bank lending and real income emerge as the main determinants of inflation in Nigeria, while fiscal deficits and exchange rates are insignificant. The relationships among the variables are stable and significant.
Journal of Sustainable Development in …, 2009
... transmission channel and the likely impact that the financial crisis and recession will have ... more ... transmission channel and the likely impact that the financial crisis and recession will have on a ... exchange inflows and external financing), likely trade deficit, exchange rate pressure (currencyvolatility), limited trade ... and capital flight in Kenya, Tanzania and Nigeria (IMF, 2009). ...
Applied Economics Letters, 2005
The question of whether exports and imports are cointegrated has been investigated for a number o... more The question of whether exports and imports are cointegrated has been investigated for a number of countries. Husted (1992) and Fountas and Wu (1999) used quarterly data for the periods 19671989 and 19671994 to investigate whether exports and imports are cointegrated ...
Journal of Economics and Development, 2018
Against the background of rising tradability and the productive nature of services as a result of... more Against the background of rising tradability and the productive nature of services as a result of the revolution in information and communication technology (ICT), this study examined the impact of services exports on economic growth in Nigeria. Time series estimations established a positive relationship between services export and economic growth after controlling for a number of variables. In addition, causality was found to run from export of services to economic growth. This is an indication that services exports offered a new channel for growth that may be of significance for Nigeria, especially when it is trying to get out of the slump in crude oil price and diversify her economy.
Tourism Analysis, 2010
... vate investment in the sector, better education for Page 8. 496 BANKOLE AND BABATUNDE cation ... more ... vate investment in the sector, better education for Page 8. 496 BANKOLE AND BABATUNDE cation to the demand for money. Oxford Bulletin of ... Modelling Tourism 26th Annual Review Seminar Research Department Central Bank of Barbados, July 2629. Demand in Fiji. ...
Journal of International Trade Law and Policy, 2012
Energy Economics, 2010
This paper formulates and estimates petroleum products demand functions in Nigeria at both aggreg... more This paper formulates and estimates petroleum products demand functions in Nigeria at both aggregative and product level for the period 1977 to 2006 using multivariate cointegration approach. The estimated short and long-run price and income elasticities confirm conventional wisdom that energy consumption responds positively to changes in GDP and negatively to changes in energy price. However, the price and income elasticities of demand varied according to product type. Kerosene and gasoline have relatively high short-run income and price elasticities compared to diesel. Overall, the results show petroleum products to be price and income inelastic.
International Journal of Social Economics, 2012
ABSTRACT Purpose – Poverty reduction remains one of the main goals of development efforts, as evi... more ABSTRACT Purpose – Poverty reduction remains one of the main goals of development efforts, as evidenced by the adoption of the Millennium Development Goals by most developing countries and international agencies. The purpose of this paper is to explore the relationship between trade (exports) and employment and how the relationship reduces poverty through the instrumentality of employment, with a focus on Nigeria. Design/methodology/approach – The paper takes the form of descriptive analysis. Findings – Evaluating the case for Nigeria, the authors find that oil exports which drives economic growth do not provide the needed employment to reduce poverty, while agricultural trade, particularly exports, are capable of reducing poverty and inequality in Nigeria through the channel of employment and agricultural productivity growth. Originality/value – The paper makes a link between export trade, employment and poverty reduction in Nigeria.
This paper estimates a monetary growth model for Nigeria by examining the existence of a signific... more This paper estimates a monetary growth model for Nigeria by examining the existence of a significant long run relationship between money supply, capital stock, inflation and economic growth between 1975 and 2008. It makes use of error correction mechanism in the bounds testing approach to cointegration within an autoregressive distributed lag framework. The empirical estimates reveal a positive and significant relationship between money supply and capital stock while a negative relationship was found between inflation and growth.
The study employed disaggregated data at bilateral level between Nigeria and her 12 trading partn... more The study employed disaggregated data at bilateral level between Nigeria and her 12 trading partners and investigates the short-run and the long-run effects of real depreciation of Nigerian Naira on her trade balances. The bounds testing approach to cointegration and error-correction modeling was used in the estimation. Findings provided some evidence of short run effect of real exchange rate on trade balance for eight of the trading partners. However these short run dynamics were inconsistent with the J-curve hypothesis. Nevertheless, the long run results showed evidence of a positive and significant relationship between real exchange rate and trade balance in four of the Nigerian trading partners. The implication of our findings is that not all trading partners are affected by real depreciation of Nigerian naira.
The global events since 2008 seems to suggest that generating the required foreign exchange for s... more The global events since 2008 seems to suggest that generating the required foreign exchange for sustained growth in sub-Saharan Africa (SSA), which is important for meeting the MDGs, will be a mirage. These events include economic slowdown in major advanced countries, financial crisis in major global financial markets and institutions, and general global credit squeeze. A direct consequence of these events is the drastic fall in international prices of major primary commodities that are fuelling growth in Africa. This implies that many SSA countries might witness drastic swings from fiscal and external current account surpluses to prolong deficits, restricted access to international (trade) credit and massive reduction in foreign direct investment (FDI) inflows among other issues. Consequently, we examine the expected channels through which the global financial and economic crisis can impact on Africa economies, what lessons are (and can be) learnt and considers possible emergency/short-run policy response as well as desirable regulatory proposals and long-term responses which should be designed and implemented to ameliorate the impact of the crises and possibly insulate the sub-continent from future crises. The conclusion is that there is a strong need for a change in development strategies in SSA.
This study examined the long-run relationship between Nigerian exports and imports between 1960 a... more This study examined the long-run relationship between Nigerian exports and imports between 1960 and 2014. Exports and imports were disaggregated into oil and non-oil components. The application of the Johansen, Bound testing and the Hansen parameter instability test cointegration techniques revealed that Nigerian exports and imports at the aggregate and disaggregated level are cointegrated with the cointegrating coefficient very close to unity. This indicated that Nigeria's macroeconomic policies have been effective in the long run and suggested that Nigeria is not in violation of its international budget constraint. The result is however sensitive to the choice of the dependent variable between exports and imports. Utilizing the Toda and Yamamoto granger non-causality tests, we also report bi-directional causality between aggregate exports and imports, but uni-directional causality from oil exports to oil imports and from non-oil imports to non-oil exports.
This study made use of panel data regression analysis between 2002 and 2006 for a sample of 62 fi... more This study made use of panel data regression analysis between 2002 and 2006 for a sample of 62 firms listed on the Nigerian Stock Exchange to examine the relationship between internal governance mechanisms and firm financial performance. The results have the implication that regulatory agencies should encourage firms to achieve a reasonable board size since overly large boards may be detrimental to the firm.
The results of the study point to the need for a reasonable number of individuals and/or corporate bodies with more than a typical share of equity of the firm as this will encourage them to undertake the monitoring process.
The objective of the study is to analyse the interaction between financial constraints and firms'... more The objective of the study is to analyse the interaction between financial constraints and firms' exporting behaviour in Nigeria. The empirical framework is applied to the 2014 World Bank Enterprise Surveys Indicator Database for Nigeria. The findings revealed that the presence of financial constraints is detrimental to export activity which is measured by the decision to export and the share of exports in total sales. The findings in this research were robust to different measures of financial constraints in the presence of standard control variables predicted by previous empirical and theoretical approaches. The positive effect of better financial stance on the export activity was therefore established. Besides that, this study also identifies credit access as a major factor that contributes to the poor export behaviour of firms' in Nigeria.
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Papers by Tunji Babatunde
The results of the study point to the need for a reasonable number of individuals and/or corporate bodies with more than a typical share of equity of the firm as this will encourage them to undertake the monitoring process.
The results of the study point to the need for a reasonable number of individuals and/or corporate bodies with more than a typical share of equity of the firm as this will encourage them to undertake the monitoring process.