Papers by Dr. Moshood Kolawole Alabi
Research Papers in Economics, 2020
The Economic Community of West African States has come up with a new single currency to be used f... more The Economic Community of West African States has come up with a new single currency to be used for its proposed West African monetary union. It is called eco. Among the West African states are a group of countries collectively referred to as the West African Monetary Zone. For the smooth running of a monetary union, fiscal policy should be sustainable and countercyclical. Main objectives of this study are to assess the relationship between fiscal policy and the business cycle and the role of institutions. Panel data of six countries for the period 2001-2018 were used. A fiscal reaction model was estimated. The cyclical component of real general government expenditure was used to represent fiscal policy while the cyclical component of real Gross Domestic Product (GDP) was used as a proxy for the business cycle. Results showed that West African Monetary Zone member countries exhibit pro-cyclical fiscal policy and weak fiscal sustainability. Also, the quality of institutions has the capability of making fiscal policy less procyclical. The policy implication of this study's finding is that these countries may not perform well if they go ahead with the single currency union. These countries must make concerted efforts to improve the quality of institutions and implement countercyclical fiscal policies. Meanwhile the proposed monetary union should be suspended.
Research Papers in Economics, 2020
Currency devaluation is an important topic in the history of international economics and finance.... more Currency devaluation is an important topic in the history of international economics and finance. It has proved to impact positively on some economies' growth and negatively on others. This study focuses on the real effects of devaluing the currency in short and long run using panel data analysis. Seven countries were examined, these are; Ghana, Mexico, Malaysia, Pakistan, Philippines, Singapore and South Africa. These countries devalued their currencies within the same period under consideration. The long run effects and relationships were determined by testing for co-integration using different co-integration methods, and the short run effect was determined using the Fully Modified OLS (FMOLS) and the Error Correction Model. A panel data covering the period between 1981-2010, was used in the analysis.The empirical results show the existence of no significant relationship between currency devaluation and output growth in the short run and a negative relationship between currency devaluation and economic growth in the long run.
Sri Lankan Journal of Business Economics, 2020
The Economic Community of West African States has come up with a new single currency to be used f... more The Economic Community of West African States has come up with a new single currency to be used for its proposed West African monetary union. It is called eco. Among the West African states are a group of countries collectively referred to as the West African Monetary Zone. For the smooth running of a monetary union, fiscal policy should be sustainable and countercyclical. Main objectives of this study are to assess the relationship between fiscal policy and the business cycle and the role of institutions. Panel data of six countries for the period 2001-2018 were used. A fiscal reaction model was estimated. The cyclical component of real general government expenditure was used to represent fiscal policy while the cyclical component of real Gross Domestic Product (GDP) was used as a proxy for the business cycle. Results showed that West African Monetary Zone member countries exhibit pro-cyclical fiscal policy and weak fiscal sustainability. Also, the quality of institutions has the capability of making fiscal policy less procyclical. The policy implication of this study's finding is that these countries may not perform well if they go ahead with the single currency union. These countries must make concerted efforts to improve the quality of institutions and implement countercyclical fiscal policies. Meanwhile the proposed monetary union should be suspended.
This paper sought to find out if accumulating foreign reserve has an impact on economic growth in... more This paper sought to find out if accumulating foreign reserve has an impact on economic growth in Nigeria and equally investigated causality between the two. Engle Granger causality test and Cointegrating regression (Fully Modified Ordinary Least Squares method) analysis were used. Our findings revealed that indeed accumulating external reserves does affect growth positively and that there is a long run equilibrium relationship between both variables. It also showed that there is a unidirectional causality running from economic growth to external reserves but not vice versa. We recommend that government should further strengthen its drive towards diversifying the monocultural oil based economy to other sectors like Mining, Agriculture and Manufacturing. This would help to boost local production and even lead to export, eventually earning foreign income for the nation and boosting its reserves.
Abstract
This study examined the impact of human capital development on economic growth in Nigeri... more Abstract
This study examined the impact of human capital development on economic growth in Nigeria. The period covered in the study is between 1980 and 2008 using time series data obtained from the Central Bank of Nigerian Statistical Bulletin. A Bivarate Regression Model using econometric analysis of OLS was deployed for the data analysis and the findings revealed a positive relationship between human capital development (proxy by education and healthcare expenditure) and economic growth (proxy by real GDP). The results showed that expenditure on health and education individually had significant impact on economic growth. In view of the findings, the study strongly recommended, among others issues that the Federal Government should play primary role of co-ordination of planning and provision of organizational guidelines in these two sectors for achieving efficiency. The study recommended further that the Federal, State and Local Governments should increase their educational funding base on the recommendation of the United Nations Educational, Scientific and Cultural Organization (UNESCO) that at least 26% of the annual budget should be allocated to the education sector, and that education curriculum should be restructured so as to focus on job creation and not job seekers. Lastly, the government should exercise the political will to determine how education in Nigeria should be funded.
This paper sought to find out if accumulating foreign reserve has an impact on economic growth in... more This paper sought to find out if accumulating foreign reserve has an impact on economic growth in Nigeria and equally investigated causality between the two. Engle Granger causality test and Cointegrating regression (Fully Modified Ordinary Least Squares method) analysis were used. Our findings revealed that indeed accumulating external reserves does affect growth positively and that there is a long run equilibrium relationship between both variables. It also showed that there is a unidirectional causality running from economic growth to external reserves but not vice versa. We recommend that government should further strengthen its drive towards diversifying the monocultural oil based economy to other sectors like Mining, Agriculture and Manufacturing. This would help to boost local production and even lead to export, eventually earning foreign income for the nation and boosting its reserves.
Currency devaluation is an important topic in the history of international economics and finance.... more Currency devaluation is an important topic in the history of international economics and finance. It has proved to impact positively on some economies' growth and negatively on others. This study focuses on the real effects of devaluing the currency in short and long run using panel data analysis. Seven countries were examined, these are; Ghana, Mexico, Malaysia, Pakistan, Philippines, Singapore and South Africa. These countries devalued their currencies within the same period under consideration. The long run effects and relationships were determined by testing for co-integration using different co-integration methods, and the short run effect was determined using the Fully Modified OLS (FMOLS) and the Error Correction Model. A panel data covering the period between 1981-2010, was used in the analysis.The empirical results show the existence of no significant relationship between currency devaluation and output growth in the short run and a negative relationship between currency devaluation and economic growth in the long run.
Abstract
This paper examined the impact of the Global System for Mobile Communication (GSM) on em... more Abstract
This paper examined the impact of the Global System for Mobile Communication (GSM) on employment generation. The study made use of primary data obtained from 345 respondents from selected communities in Ilorin East, West and South Local Governments respectively in Kwara State through the copies of questionnaire administered. The data collected was analysed using descriptive statistics and a linear regression model. The outcome of the empirical investigations showed that the Global System for Mobile Communication indeed contributed immensely in providing several jobs, especially in the informal sector, and income for the individual household members who were either unemployed or underpaid in their former jobs. The findings of this study suggests that if Government could replicate the deregulation policy of the telecommunication sector in other sectors of the economy, it would go a long way in providing more employment opportunities.
Keywords: GSM, Employment, Income, Mincer earnings model
This paper examined the Prospects and Challenges of operating an Islamic (Non-Interest) Banking S... more This paper examined the Prospects and Challenges of operating an Islamic (Non-Interest) Banking System in Nigeria. In June, 2011, the Central Bank of Nigeria (CBN) issued a new framework for the regulation and supervision of non‐interest financial institutions alongside the fact that it had licensed JAIZ Bank, the first full-fledge Islamic Bank to operate Interest-free banking in Nigeria. However, this announcement was met with mixed reactions. While a few supported the introduction, majority kicked against it. Little thought was given by the different parties over the basic idea behind its introduction and the gains the country could derive from it. A look at the performance of these banks across the globe revealed that it has the potential of guaranteeing financial inclusion for more Nigerians, providing alternative financial products and services which are ethical, ensuring stability in the Financial Sector and attracting huge Foreign Direct Investments. Even though the Islamic banks are going to be faced with stiff competition and several challenges like dearth of Manpower, Inadequate Shari’ah-compliant liquidity management instruments and a lack of knowledge of Islamic Finance, Accounting and Auditing standards, these challenges are however surmountable. The CBN and Islamic Bank Promoters must embark upon massive public awareness, encourage Human Capital Development in Islamic finance and chart ways of fully integrating and accommodating the Islamic Banks and their products into the Nigerian Financial Market.
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Papers by Dr. Moshood Kolawole Alabi
This study examined the impact of human capital development on economic growth in Nigeria. The period covered in the study is between 1980 and 2008 using time series data obtained from the Central Bank of Nigerian Statistical Bulletin. A Bivarate Regression Model using econometric analysis of OLS was deployed for the data analysis and the findings revealed a positive relationship between human capital development (proxy by education and healthcare expenditure) and economic growth (proxy by real GDP). The results showed that expenditure on health and education individually had significant impact on economic growth. In view of the findings, the study strongly recommended, among others issues that the Federal Government should play primary role of co-ordination of planning and provision of organizational guidelines in these two sectors for achieving efficiency. The study recommended further that the Federal, State and Local Governments should increase their educational funding base on the recommendation of the United Nations Educational, Scientific and Cultural Organization (UNESCO) that at least 26% of the annual budget should be allocated to the education sector, and that education curriculum should be restructured so as to focus on job creation and not job seekers. Lastly, the government should exercise the political will to determine how education in Nigeria should be funded.
This paper examined the impact of the Global System for Mobile Communication (GSM) on employment generation. The study made use of primary data obtained from 345 respondents from selected communities in Ilorin East, West and South Local Governments respectively in Kwara State through the copies of questionnaire administered. The data collected was analysed using descriptive statistics and a linear regression model. The outcome of the empirical investigations showed that the Global System for Mobile Communication indeed contributed immensely in providing several jobs, especially in the informal sector, and income for the individual household members who were either unemployed or underpaid in their former jobs. The findings of this study suggests that if Government could replicate the deregulation policy of the telecommunication sector in other sectors of the economy, it would go a long way in providing more employment opportunities.
Keywords: GSM, Employment, Income, Mincer earnings model
This study examined the impact of human capital development on economic growth in Nigeria. The period covered in the study is between 1980 and 2008 using time series data obtained from the Central Bank of Nigerian Statistical Bulletin. A Bivarate Regression Model using econometric analysis of OLS was deployed for the data analysis and the findings revealed a positive relationship between human capital development (proxy by education and healthcare expenditure) and economic growth (proxy by real GDP). The results showed that expenditure on health and education individually had significant impact on economic growth. In view of the findings, the study strongly recommended, among others issues that the Federal Government should play primary role of co-ordination of planning and provision of organizational guidelines in these two sectors for achieving efficiency. The study recommended further that the Federal, State and Local Governments should increase their educational funding base on the recommendation of the United Nations Educational, Scientific and Cultural Organization (UNESCO) that at least 26% of the annual budget should be allocated to the education sector, and that education curriculum should be restructured so as to focus on job creation and not job seekers. Lastly, the government should exercise the political will to determine how education in Nigeria should be funded.
This paper examined the impact of the Global System for Mobile Communication (GSM) on employment generation. The study made use of primary data obtained from 345 respondents from selected communities in Ilorin East, West and South Local Governments respectively in Kwara State through the copies of questionnaire administered. The data collected was analysed using descriptive statistics and a linear regression model. The outcome of the empirical investigations showed that the Global System for Mobile Communication indeed contributed immensely in providing several jobs, especially in the informal sector, and income for the individual household members who were either unemployed or underpaid in their former jobs. The findings of this study suggests that if Government could replicate the deregulation policy of the telecommunication sector in other sectors of the economy, it would go a long way in providing more employment opportunities.
Keywords: GSM, Employment, Income, Mincer earnings model