Corporate governance and capital structure are two compelling factors that affect the performance... more Corporate governance and capital structure are two compelling factors that affect the performance and value of the firm. The two concepts are important areas in financial management for firms to achieve high value and growth rate. This paper examines the impact of ownership and board structures on the capital structure of firms listed on the stock exchanges of selected sub-Saharan African countries for the period 2010 to 20019. The study analyses whether ownership and board structure plays any significant role in the capital structure of the firm. The result of the panel data regression analysis reveals that concentrated ownership structure negatively impacts on debt ratio in sub-Saharan African firms. The study shows that managerial ownership and board structure explains the capital structure of firms in sub-Saharan Africa. The study demonstrates evidence of a significant negative influence of managerial shareholding and CEO's tenure on the debt ratio of listed firms in sub-Sahara Africa. The result of the study suggests that the outside directors and board size positively influence the debt ratio of listed firms in sub-Sahara African countries. Given the results of this study, it is imperative for stakeholders in the region to continually improve the ownership and board structures of the firm to avoid the negative effect of debt on performance and the value of shareholders' wealth.
Foreign Direct Investment (FDI) is considered as an invaluable tool for achieving economic growth... more Foreign Direct Investment (FDI) is considered as an invaluable tool for achieving economic growth in developing countries. In order to achieve the objective of a higher rate of economic growth and the efficiency in the utilization of resources, developing countries the world over have embarked upon various policy measures at attracting FDI. The study is an empirical investigation (using a time series data between 1980 and 2015) into the factors that constrain the inflow of FDI into the Nigeria economy. The Phillip Perron (PP) unit root test was used to test stationarity of the variables, Johansen Co-integration approach was conducted to test for long run relationship between the variables used, Vector Error Correction Model was used to establish the short run dynamics and the long run relationship as well as ascertain the speed of systemic adjustment in the model. The study found that government external and domestic debts, inflation rate and exchange rate appreciation (in favour of...
The Journal of Internet Banking and Commerce, 2017
Following the consolidation of the Nigerian banking sector in 2005, to among other things, develo... more Following the consolidation of the Nigerian banking sector in 2005, to among other things, develop a strong and reliable banking sector capable of supporting the development of the domestic economy, this paper examines the performance of the programme by comparing the pre- and post-consolidation performance of the sector. Two independent samples representing the 9-year period preceding the 2005 banking consolidation exercise and the corresponding 9-year post consolidation period were analyzed. Performance assessment indicators analyzed in the study are non-performing loans ratio (asset quality), return on assets (earnings/profitability), capital adequacy ratio (long-term liquidity) liquidity ratio (short-term liquidity), bank loans and advances ratio (credit delivery) and bank assets ratio (bank size). Levene's independent sample t-test was used to determine evidence of significant difference in banking sector performance between the pre- and post-consolidation periods. At 5 per...
This study examines the possible effects of dividend policy on firm value. The study covers 10 qu... more This study examines the possible effects of dividend policy on firm value. The study covers 10 quoted companies studied for the period of 1995 - 2015. In so doing, the methodology adopted is the ordinary least square regression analysis for primary data analyses and multiple regression analysis for the secondary data analyses with models MPS (Market Price per Share) as dependent variable, EPS (Earnings per Share) and DPS (Dividend Per Share) as independent variables. The study shows the relevance of dividend as a signaling model and proves that firm value is greatly influenced by dividend policy as far as public limited companies are concerned.
This paper investigates the relationship between capital market development and economic growth u... more This paper investigates the relationship between capital market development and economic growth using data on GDP (proxy for economic growth), market capitalization ratio, value traded ratio and stock market turnover ratio (proxies for capital market development) over the period 1981-2014. Employing the econometric methodology of the vector error correction model, the study shows that in the short-run, market capitalization ratio and turnover ratio have significant negative effect on aggregate national output (GDP). The study also shows positive effect of value traded ratio as well as negative effect of inflation rate on GDP though not significant. The long-run estimate shows that all the exogenous variables have significant negative impact on GDP and that changes in market capitalization ratio, value traded ratio and turnover ratio produce more than proportionate changes in GDP. With an adjustment speed of about 91.12 per cent, the model presents an inherent capacity to overcome sh...
Investment Management and Financial Innovations, 2019
Inflation is an important macroeconomic issue that has continued to dominate discussions at major... more Inflation is an important macroeconomic issue that has continued to dominate discussions at major economic fora over time. Governments all over the world are concerned about its rising trend because of its pervasive effect on economic performance. One intriguing fact about inflation is that it is both the cause and effect of certain policy actions of government. Several studies have been conducted on the effect of inflation on economic activities in developing and developed nations, but studies on its cause, particularly in developing nations, are scant. This paper aims at identifying major factors that cause inflation in Nigeria. Based on the autoregressive distributed lag (ARDL) estimation method, the study shows empirical support for significant impact of external debt, exchange rate, fiscal deficits, money supply and economic growth on inflation. It further shows previous period or lagged inflation rate as a significant determinant of current inflation rate. However, the study p...
Oman Chapter of Arabian Journal of Business and Management Review, 2017
This study seeks to identify the effect of economic liberalization policy of the government (intr... more This study seeks to identify the effect of economic liberalization policy of the government (introduced in 1986 under the structural adjustment programme) on the performance of the industrial sector in Nigeria. Specifically, the study examines the extent to which changes in some key economic indicators like exchange rate, financial depth, trade openness and inflation rate account for the trend in output performance of Nigeria's industrial sector. Annual data on the variables, sourced from the publications of the Central Bank of Nigeria, were analyzed using the technique of the Vector Error Correction Model. The study shows that exchange rate volatility and trade openness exert significant positive impact on industrial output performance. The study however shows that financial depth and inflation exert negative but not significant impact on industrial output growth. To enhance the performance of the sector, government should seek to diversify sources of foreign exchange inflow to support her import-dependent industrial sector as well as develop the infrastructure base of the economy. Properly functioning infrastructure will, among other things, greatly enhance the realization of low price levels and hence low level of inflation required to boost domestic production capacity.
During the first two and half decades of political independence, Nigeria adopted a regulated econ... more During the first two and half decades of political independence, Nigeria adopted a regulated economic policy, ostensibly to promote rapid development of her nascent economy. Of strategic importance was the real sector which, in line with government economic objectives at the time, was classified as a preferred sector. The major policy thrust of the regime was maintenance of low interest rates, fixed exchange rate, administratively controlled credit allocation, protection of domestic industries from foreign competition, etc. However, the sub-optimal performance of the Nigerian economy during the regulated regime, as shown by declining levels of domestic production capacity, rising level of inflation, high rate of illegal importation, often, of substandard products, low rate of domestic savings, etc., is testament to inability of the regime to drive rapid economic growth, hence the adoption of a deregulated regime in July 1986. Deregulation aimed at restructuring and redirecting the Nigerian economy, promoting competition and raising productivity of the real sector. Against this background, the study therefore examines the extent to which the economic deregulation policy (embodied in government's structural adjustment programme) impacted on the performance of the real sector in Nigeria. Specifically, it examines the extent to which changes in key indicators of economic performance like exchange rate, private sector credit, trade openness and inflation rate explain industrial output performance in Nigeria. Annual data on the variables, sourced from the publications of the Central Bank of Nigeria, were analyzed using the econometric technique of the Vector Error Correction Model. Evidence from the study indicates that exchange rate and trade openness exert significant positive impact on industrial output in Nigeria. The study also shows non-significant negative impact of financial deepening and inflation on Nigeria's industrial output. Government should stabilize the foreign exchange earning capacity of the economy through effective diversification of its revenue sources in order to enhance the performance of the sector.
Over the years, governments have been confronted with the implementation of a growth-oriented eco... more Over the years, governments have been confronted with the implementation of a growth-oriented economic policy. The policy challenge has often been a decision between protectionist and liberalized policies. Nigeria adopted the former up to 1986. Inability of the protectionist policy to drive sustainable growth led to a policy change, in July 1986, to economic openness or liberalization. Following the adoption of policy in 1986 under the structural adjustment programme, there have been conflicting opinions on whether or not it has supported the growth of the Nigerian economy. Against this background, this study seeks to examine the effect of the economic liberalization policy on the performance of the industrial sector in Nigeria. Specifically, the study examines the extent to which changes in some key economic indicators like exchange rate, financial deepening, trade openness and lending rate account for the trend in output performance of Nigeria's industrial sector in the post reform period. Choice of the exogenous variables was based on developments in commercial and financial sectors following the adoption of the policy. Dataover the period 1986-2014 were analyzed using econometric technique based on the Vector Error Correction Model. The study shows that rate of change in exchange rate, trade openness and lending rate exert significant negative impact on industrial output. There is also evidence of significant positive impact of financial deepening on industrial output. The Granger causality estimate shows weak causal impact of financial deepening on industrial output as well as bi-directional causation between trade openness and industrial output. There is also evidence of causal impact of industrial output on lending rate, an indication that industrial development generates demand for financial resources. The study recommends that government seeks to achieve an investment-friendly climate as well as monitor real sector operators to ensure that foreign exchange allocations are not diverted.
In Financial Systems, the impact of Free Cash Flow (FCF) on the performance of a company has been... more In Financial Systems, the impact of Free Cash Flow (FCF) on the performance of a company has been in the center of academic discourse in recent years. Several studies have tried to ascertain the nature and magnitude of the relationship between free cash flow and firm profitability with conflicting results coming from different scholars. The main objective of this research work was to examine the impact of FCF on the profitability of quoted manufacturing firms in the Nigerian and Ghana stock exchanges. Data were pooled from twenty (20) different companies (ten each from Nigeria and Ghana) for a period of six years (2012 – 2017). A panel data estimation model was used to measure the impact of FCF and other performance metrics on the Return on Assets (ROA), which is our chosen profitability measure. The results show a positive but insignificant relationship between FCF and ROA both for Ghana and Nigerian manufacturing firms. Also, sales growth showed a positive impact on profitability ...
The development of the industrial sector remains a contentious issue in Nigeria’s economy.This re... more The development of the industrial sector remains a contentious issue in Nigeria’s economy.This research examines the impact of Government expenditure on sustainable industrial developmentin Nigeria. The research adopted Johansen co-integration and vector error correction analysis via EViews statistical software (version 10.0) for period between 1981 and 2018, to determine long-runimpact of public finance on industrial growth in Nigeria. It used time series data extracted from CBNstatistical bulletin (2018) and WDI (2018). This research adopts Wagner’s Law named after the Germanpolitical economist Adolph Wagner (1835-1917), which best explains government expenditure andindustrialization. This research study found out that government revenue is statistically insignificantbut has a positive effect on industrial development; Manufacturing Value added as a proxy (MVA), a100% change in GREV will bring about 28% changes in manufacturing output, capital expenditure ishowever statistically s...
The study seeks to determine the effect of external debt on economic growth in Nigeria. Specifica... more The study seeks to determine the effect of external debt on economic growth in Nigeria. Specifically, the study examines whether external borrowings and its major determinants like exchange rate, gross fixed capital formation and inflation rate have supported the growth of the Nigerian economy. The parameters of the model were estimated using the ordinary least squares method. The robustness of the result was enhanced using the generalized least squares technique. The result shows evidence of significant positive correlation between economic growth and the explanatory variables namely external debt, exchange rate and inflation rate. A negative correlation was however observed between economic growth and gross fixed capital formation. The regression estimates for both the ordinary and generalized least squares tests show significant positive impact of external debt, exchange rate and inflation rate on economic growth. The results also show non-significant negative effect of gross fix...
A major policy cha//enge f or open developing economies is determination of an optimal exchange r... more A major policy cha//enge f or open developing economies is determination of an optimal exchange rate consistent with their economic development objectives. These economies are characterized by heavy dependence on commodity exports while relying extensively on consumer and industrial goods imports. This translates to massive outflow of fore ign exchange from developing economies to industrialized nations thereby impeding the capacity of developing nations to build a robust domestic production base. This study examines the channel of transmission of impact between manufacturing capacity utilization, exchange rate and trade openness using the Granger causality estimation technique. Interest rate and inflation rate were introduced as control variables. The study covers the period 1986-2013. The study did not produce evidence of causal relationship between exchange rate andmanufacturing capacity utilization and between trade openness and manufac turing capacity utilization. However, ther...
This is a conceptual review (content analysis) of the effect of foreign direct investment as a ca... more This is a conceptual review (content analysis) of the effect of foreign direct investment as a catalyst for sustainable economic development in Nigeria. The major objective is a comparative analysis of 87 developing countries with the capacity to attract FDI and proffer possible solutions that will catapult Nigeria as a globally acceptable haven for foreign investment. The secondary data were sourced from Investing Across Borders (IAB) 2010 report where 87 developing countries across the globe were assessed using the IAB indicators. The major conclusion drawn from the survey is that Nigeria as a country is yet to maximize its potentials (given available resources and market size) at attracting foreign investment. It also concludes that the process of foreign business establishment/ownership in Nigeria need to be improved upon to encourage high patronage of foreigners in economic activities. This study therefore recommends that Government should make policies that will encourage equi...
The major objective of this paper was to determine the effect of financial inclusion on economic ... more The major objective of this paper was to determine the effect of financial inclusion on economic growth and development in Nigeria using historical data on selected variables over the period 1986- 2015. Ordinary Least Squares regression technique was adopted. Financial inclusion was measured inthe study using loan to deposit ratio (LDR), financial deepening indicators (FDI), loan to rural areas (LRA), and branch network (Bbranch). Measures of financial deepening adopted in the study are ratios of private sector credit to GDP and broad money supply to GDP. Economic growth wasproxied as growth in gross domestic product (GDP) over successive periods while per capita income (PCI) was adopted as a measure of poverty and hence an index of development. The main findings are (i) credit delivery to the private sector (an index of financial inclusion) has not significantly supported economic growth in Nigeria (ii) financial inclusion has promoted poverty alleviation in Nigeria through rural c...
Corporate governance and capital structure are two compelling factors that affect the performance... more Corporate governance and capital structure are two compelling factors that affect the performance and value of the firm. The two concepts are important areas in financial management for firms to achieve high value and growth rate. This paper examines the impact of ownership and board structures on the capital structure of firms listed on the stock exchanges of selected sub-Saharan African countries for the period 2010 to 20019. The study analyses whether ownership and board structure plays any significant role in the capital structure of the firm. The result of the panel data regression analysis reveals that concentrated ownership structure negatively impacts on debt ratio in sub-Saharan African firms. The study shows that managerial ownership and board structure explains the capital structure of firms in sub-Saharan Africa. The study demonstrates evidence of a significant negative influence of managerial shareholding and CEO's tenure on the debt ratio of listed firms in sub-Sahara Africa. The result of the study suggests that the outside directors and board size positively influence the debt ratio of listed firms in sub-Sahara African countries. Given the results of this study, it is imperative for stakeholders in the region to continually improve the ownership and board structures of the firm to avoid the negative effect of debt on performance and the value of shareholders' wealth.
Foreign Direct Investment (FDI) is considered as an invaluable tool for achieving economic growth... more Foreign Direct Investment (FDI) is considered as an invaluable tool for achieving economic growth in developing countries. In order to achieve the objective of a higher rate of economic growth and the efficiency in the utilization of resources, developing countries the world over have embarked upon various policy measures at attracting FDI. The study is an empirical investigation (using a time series data between 1980 and 2015) into the factors that constrain the inflow of FDI into the Nigeria economy. The Phillip Perron (PP) unit root test was used to test stationarity of the variables, Johansen Co-integration approach was conducted to test for long run relationship between the variables used, Vector Error Correction Model was used to establish the short run dynamics and the long run relationship as well as ascertain the speed of systemic adjustment in the model. The study found that government external and domestic debts, inflation rate and exchange rate appreciation (in favour of...
The Journal of Internet Banking and Commerce, 2017
Following the consolidation of the Nigerian banking sector in 2005, to among other things, develo... more Following the consolidation of the Nigerian banking sector in 2005, to among other things, develop a strong and reliable banking sector capable of supporting the development of the domestic economy, this paper examines the performance of the programme by comparing the pre- and post-consolidation performance of the sector. Two independent samples representing the 9-year period preceding the 2005 banking consolidation exercise and the corresponding 9-year post consolidation period were analyzed. Performance assessment indicators analyzed in the study are non-performing loans ratio (asset quality), return on assets (earnings/profitability), capital adequacy ratio (long-term liquidity) liquidity ratio (short-term liquidity), bank loans and advances ratio (credit delivery) and bank assets ratio (bank size). Levene's independent sample t-test was used to determine evidence of significant difference in banking sector performance between the pre- and post-consolidation periods. At 5 per...
This study examines the possible effects of dividend policy on firm value. The study covers 10 qu... more This study examines the possible effects of dividend policy on firm value. The study covers 10 quoted companies studied for the period of 1995 - 2015. In so doing, the methodology adopted is the ordinary least square regression analysis for primary data analyses and multiple regression analysis for the secondary data analyses with models MPS (Market Price per Share) as dependent variable, EPS (Earnings per Share) and DPS (Dividend Per Share) as independent variables. The study shows the relevance of dividend as a signaling model and proves that firm value is greatly influenced by dividend policy as far as public limited companies are concerned.
This paper investigates the relationship between capital market development and economic growth u... more This paper investigates the relationship between capital market development and economic growth using data on GDP (proxy for economic growth), market capitalization ratio, value traded ratio and stock market turnover ratio (proxies for capital market development) over the period 1981-2014. Employing the econometric methodology of the vector error correction model, the study shows that in the short-run, market capitalization ratio and turnover ratio have significant negative effect on aggregate national output (GDP). The study also shows positive effect of value traded ratio as well as negative effect of inflation rate on GDP though not significant. The long-run estimate shows that all the exogenous variables have significant negative impact on GDP and that changes in market capitalization ratio, value traded ratio and turnover ratio produce more than proportionate changes in GDP. With an adjustment speed of about 91.12 per cent, the model presents an inherent capacity to overcome sh...
Investment Management and Financial Innovations, 2019
Inflation is an important macroeconomic issue that has continued to dominate discussions at major... more Inflation is an important macroeconomic issue that has continued to dominate discussions at major economic fora over time. Governments all over the world are concerned about its rising trend because of its pervasive effect on economic performance. One intriguing fact about inflation is that it is both the cause and effect of certain policy actions of government. Several studies have been conducted on the effect of inflation on economic activities in developing and developed nations, but studies on its cause, particularly in developing nations, are scant. This paper aims at identifying major factors that cause inflation in Nigeria. Based on the autoregressive distributed lag (ARDL) estimation method, the study shows empirical support for significant impact of external debt, exchange rate, fiscal deficits, money supply and economic growth on inflation. It further shows previous period or lagged inflation rate as a significant determinant of current inflation rate. However, the study p...
Oman Chapter of Arabian Journal of Business and Management Review, 2017
This study seeks to identify the effect of economic liberalization policy of the government (intr... more This study seeks to identify the effect of economic liberalization policy of the government (introduced in 1986 under the structural adjustment programme) on the performance of the industrial sector in Nigeria. Specifically, the study examines the extent to which changes in some key economic indicators like exchange rate, financial depth, trade openness and inflation rate account for the trend in output performance of Nigeria's industrial sector. Annual data on the variables, sourced from the publications of the Central Bank of Nigeria, were analyzed using the technique of the Vector Error Correction Model. The study shows that exchange rate volatility and trade openness exert significant positive impact on industrial output performance. The study however shows that financial depth and inflation exert negative but not significant impact on industrial output growth. To enhance the performance of the sector, government should seek to diversify sources of foreign exchange inflow to support her import-dependent industrial sector as well as develop the infrastructure base of the economy. Properly functioning infrastructure will, among other things, greatly enhance the realization of low price levels and hence low level of inflation required to boost domestic production capacity.
During the first two and half decades of political independence, Nigeria adopted a regulated econ... more During the first two and half decades of political independence, Nigeria adopted a regulated economic policy, ostensibly to promote rapid development of her nascent economy. Of strategic importance was the real sector which, in line with government economic objectives at the time, was classified as a preferred sector. The major policy thrust of the regime was maintenance of low interest rates, fixed exchange rate, administratively controlled credit allocation, protection of domestic industries from foreign competition, etc. However, the sub-optimal performance of the Nigerian economy during the regulated regime, as shown by declining levels of domestic production capacity, rising level of inflation, high rate of illegal importation, often, of substandard products, low rate of domestic savings, etc., is testament to inability of the regime to drive rapid economic growth, hence the adoption of a deregulated regime in July 1986. Deregulation aimed at restructuring and redirecting the Nigerian economy, promoting competition and raising productivity of the real sector. Against this background, the study therefore examines the extent to which the economic deregulation policy (embodied in government's structural adjustment programme) impacted on the performance of the real sector in Nigeria. Specifically, it examines the extent to which changes in key indicators of economic performance like exchange rate, private sector credit, trade openness and inflation rate explain industrial output performance in Nigeria. Annual data on the variables, sourced from the publications of the Central Bank of Nigeria, were analyzed using the econometric technique of the Vector Error Correction Model. Evidence from the study indicates that exchange rate and trade openness exert significant positive impact on industrial output in Nigeria. The study also shows non-significant negative impact of financial deepening and inflation on Nigeria's industrial output. Government should stabilize the foreign exchange earning capacity of the economy through effective diversification of its revenue sources in order to enhance the performance of the sector.
Over the years, governments have been confronted with the implementation of a growth-oriented eco... more Over the years, governments have been confronted with the implementation of a growth-oriented economic policy. The policy challenge has often been a decision between protectionist and liberalized policies. Nigeria adopted the former up to 1986. Inability of the protectionist policy to drive sustainable growth led to a policy change, in July 1986, to economic openness or liberalization. Following the adoption of policy in 1986 under the structural adjustment programme, there have been conflicting opinions on whether or not it has supported the growth of the Nigerian economy. Against this background, this study seeks to examine the effect of the economic liberalization policy on the performance of the industrial sector in Nigeria. Specifically, the study examines the extent to which changes in some key economic indicators like exchange rate, financial deepening, trade openness and lending rate account for the trend in output performance of Nigeria's industrial sector in the post reform period. Choice of the exogenous variables was based on developments in commercial and financial sectors following the adoption of the policy. Dataover the period 1986-2014 were analyzed using econometric technique based on the Vector Error Correction Model. The study shows that rate of change in exchange rate, trade openness and lending rate exert significant negative impact on industrial output. There is also evidence of significant positive impact of financial deepening on industrial output. The Granger causality estimate shows weak causal impact of financial deepening on industrial output as well as bi-directional causation between trade openness and industrial output. There is also evidence of causal impact of industrial output on lending rate, an indication that industrial development generates demand for financial resources. The study recommends that government seeks to achieve an investment-friendly climate as well as monitor real sector operators to ensure that foreign exchange allocations are not diverted.
In Financial Systems, the impact of Free Cash Flow (FCF) on the performance of a company has been... more In Financial Systems, the impact of Free Cash Flow (FCF) on the performance of a company has been in the center of academic discourse in recent years. Several studies have tried to ascertain the nature and magnitude of the relationship between free cash flow and firm profitability with conflicting results coming from different scholars. The main objective of this research work was to examine the impact of FCF on the profitability of quoted manufacturing firms in the Nigerian and Ghana stock exchanges. Data were pooled from twenty (20) different companies (ten each from Nigeria and Ghana) for a period of six years (2012 – 2017). A panel data estimation model was used to measure the impact of FCF and other performance metrics on the Return on Assets (ROA), which is our chosen profitability measure. The results show a positive but insignificant relationship between FCF and ROA both for Ghana and Nigerian manufacturing firms. Also, sales growth showed a positive impact on profitability ...
The development of the industrial sector remains a contentious issue in Nigeria’s economy.This re... more The development of the industrial sector remains a contentious issue in Nigeria’s economy.This research examines the impact of Government expenditure on sustainable industrial developmentin Nigeria. The research adopted Johansen co-integration and vector error correction analysis via EViews statistical software (version 10.0) for period between 1981 and 2018, to determine long-runimpact of public finance on industrial growth in Nigeria. It used time series data extracted from CBNstatistical bulletin (2018) and WDI (2018). This research adopts Wagner’s Law named after the Germanpolitical economist Adolph Wagner (1835-1917), which best explains government expenditure andindustrialization. This research study found out that government revenue is statistically insignificantbut has a positive effect on industrial development; Manufacturing Value added as a proxy (MVA), a100% change in GREV will bring about 28% changes in manufacturing output, capital expenditure ishowever statistically s...
The study seeks to determine the effect of external debt on economic growth in Nigeria. Specifica... more The study seeks to determine the effect of external debt on economic growth in Nigeria. Specifically, the study examines whether external borrowings and its major determinants like exchange rate, gross fixed capital formation and inflation rate have supported the growth of the Nigerian economy. The parameters of the model were estimated using the ordinary least squares method. The robustness of the result was enhanced using the generalized least squares technique. The result shows evidence of significant positive correlation between economic growth and the explanatory variables namely external debt, exchange rate and inflation rate. A negative correlation was however observed between economic growth and gross fixed capital formation. The regression estimates for both the ordinary and generalized least squares tests show significant positive impact of external debt, exchange rate and inflation rate on economic growth. The results also show non-significant negative effect of gross fix...
A major policy cha//enge f or open developing economies is determination of an optimal exchange r... more A major policy cha//enge f or open developing economies is determination of an optimal exchange rate consistent with their economic development objectives. These economies are characterized by heavy dependence on commodity exports while relying extensively on consumer and industrial goods imports. This translates to massive outflow of fore ign exchange from developing economies to industrialized nations thereby impeding the capacity of developing nations to build a robust domestic production base. This study examines the channel of transmission of impact between manufacturing capacity utilization, exchange rate and trade openness using the Granger causality estimation technique. Interest rate and inflation rate were introduced as control variables. The study covers the period 1986-2013. The study did not produce evidence of causal relationship between exchange rate andmanufacturing capacity utilization and between trade openness and manufac turing capacity utilization. However, ther...
This is a conceptual review (content analysis) of the effect of foreign direct investment as a ca... more This is a conceptual review (content analysis) of the effect of foreign direct investment as a catalyst for sustainable economic development in Nigeria. The major objective is a comparative analysis of 87 developing countries with the capacity to attract FDI and proffer possible solutions that will catapult Nigeria as a globally acceptable haven for foreign investment. The secondary data were sourced from Investing Across Borders (IAB) 2010 report where 87 developing countries across the globe were assessed using the IAB indicators. The major conclusion drawn from the survey is that Nigeria as a country is yet to maximize its potentials (given available resources and market size) at attracting foreign investment. It also concludes that the process of foreign business establishment/ownership in Nigeria need to be improved upon to encourage high patronage of foreigners in economic activities. This study therefore recommends that Government should make policies that will encourage equi...
The major objective of this paper was to determine the effect of financial inclusion on economic ... more The major objective of this paper was to determine the effect of financial inclusion on economic growth and development in Nigeria using historical data on selected variables over the period 1986- 2015. Ordinary Least Squares regression technique was adopted. Financial inclusion was measured inthe study using loan to deposit ratio (LDR), financial deepening indicators (FDI), loan to rural areas (LRA), and branch network (Bbranch). Measures of financial deepening adopted in the study are ratios of private sector credit to GDP and broad money supply to GDP. Economic growth wasproxied as growth in gross domestic product (GDP) over successive periods while per capita income (PCI) was adopted as a measure of poverty and hence an index of development. The main findings are (i) credit delivery to the private sector (an index of financial inclusion) has not significantly supported economic growth in Nigeria (ii) financial inclusion has promoted poverty alleviation in Nigeria through rural c...
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Papers by Lawrence Okoye