Ilorin Journal of Economic Policy

Ilorin Journal of Economic Policy

Basic info

  • Publisher: University of Ilorin, Nigeria
  • Country of publisher: nigeria
  • Date added to EuroPub: 2020/Jun/25

Subject and more

  • LCC Subject Category: Economics
  • Publisher's keywords: Economic
  • Language of fulltext: english
  • Time from submission to publication: weeks

Publication charges

  • Article Processing Charges (APCs): No
  • Submission charges: No
  • Waiver policy for charges? No

Open access & licensing

  • Type of License:
  • License terms
  • Open Access Statement: No
  • Year open access content began: 2014
  • Does the author retain unrestricted copyright? False
  • Does the author retain publishing rights? False

Best practice polices

  • Permanent article identifier:
  • Content digitally archived in:
  • Deposit policy registered in:

This journal has '8' articles

SUSTAINABLE LEVEL OF PARALLEL CURRENCY MARKET PREMIUM FOR SELECTED MACROECONOMIC INDICATORS IN NIGERIA

SUSTAINABLE LEVEL OF PARALLEL CURRENCY MARKET PREMIUM FOR SELECTED MACROECONOMIC INDICATORS IN NIGERIA

Authors: Musbau Olaniyan Fatai
Year: 2020, Volume: 7, Number: 2
(0 downloads)
Abstract

Unlike previous studies, this study concentrates on the level effects of the Parallel Currency Market Premium (PCMP) for macroeconomic variables which has largely been neglected in the empirical literature in Nigeria. It investigates the sustainable level of PCMP and macroeconomic variables in Nigeria. Annual secondary data covering the period 1986-2015 were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletins and World Bank Development Indicators (WDI). Data collected were analysed using the Threshold Model taking after the work of Hansen (1999) with modification in relating PCMP and macroeconomic variables implicitly. Results, based on the threshold regression of sustainable levels of the PCMP for Inflation and interest rate variables in Nigeria indicated that PCMP has a threshold value of 35% for inflation rate and 23% for interest rate in Nigeria respectively. That is, any threshold level above this sustainable level, inflation and interest rate will be affected negatively in Nigeria. The results also indicated that no PCMP threshold level were established for the growth rate of GDP in Nigeria. This implies that there is no direct relationship between PCMP and growth rate of GDP in Nigeria. The paper concludes that, the best approach to constraints to the effective performance of the macroeconomic fundamentals and ensure crucial attainment of sustainable growth in Nigeria need to be eliminated through further easing of foreign exchange rationing gradually in the official market and consequently reducing/eliminating the PCMP.

Keywords: PCMP, Macroeconomic fundamentals, sustainable level, Threshold.
ANALYSIS OF POLITICAL INSTITUTIONS AND CENTRAL BANK TRANSPARENCY IN SELECTED AFRICAN COUNTRIES

ANALYSIS OF POLITICAL INSTITUTIONS AND CENTRAL BANK TRANSPARENCY IN SELECTED AFRICAN COUNTRIES

Authors: Abdulhakeem A. Kilishi & Muktar S. Adamu
Year: 2020, Volume: 7, Number: 2
(0 downloads)
Abstract

Studies on central bank transparency focus on effect of central bank transparency rather than causes or determinants of central bank transparency. This paper empirically examined the impact of different measures of political institutions on central bank transparency. A panel data of twenty-two African countries was gathered over a period 2006 to 2018. Driscoll and Kraay method was used to gauged the model. The findings revealed that central bank transparency increases as quality of political institutions improve. The paper recommended that political institutions should be reformed to allow: (i) citizens participation in public decision making, (ii) equal opportunity for all including minority and women in political participation, (iii) restriction on exercise of executive powers, and (iv) adherent to the basic component of rule of law, principle of checks and balances, as well as true separation of power among the arms of government.

Keywords: Central Bank, Transparency, Political Institutions,
ACCESS TO FINANCE AND RATE OF POVERTY IN SUB-SAHARAN AFRICA

ACCESS TO FINANCE AND RATE OF POVERTY IN SUB-SAHARAN AFRICA

Authors: Taiwo Wakilat Bello & Opeyeni Nathaniel Oladunjoye
Year: 2020, Volume: 7, Number: 1
(0 downloads)
Abstract

The challenge of high rate of poverty and how to address it continues to be the most persistent discuss in international development debates. In the heart of most academic researchers and policy makers are question on what makes sub-Saharan Africa (SSA) the poorest region in the world and what can be done to rescue the populace from the vicious cycle of poverty. This study examined the effect of access to finance and poverty level in SSA. Secondary data on household per capita consumption, number of commercial bank branches per one hundred thousand adults, number of automated teller machines (ATMs) per one hundred thousand adults, number of depositors per one thousand adults, number of borrowers from commercial banks per one thousand adults, per capita income, percentage of dependants over the active working population, trade openness, real interest rate, government expenditure as well as GINI index covering 2004-2018 were sourced from the World Development Indicators (WDI) of the World Bank (2019) and Global Financial Development (2019). Data collected were analysed using econometric method of Panel Ordinary Least Squares. The study found that number of commercial bank branches per 100,000 adults, number of ATMs per 100,000 adults and the number of depositors account per 1000 adults had positive and significant impact on poverty level (household final per capita consumption-expenditure). Whereas, borrowers from banks per 1000 adults had positive but insignificant impact on poverty level. The study concluded that overall access to finance positively impacted the level of poverty in SSA. Hence, access to finance can be used as tool for improving the welfare of the people and in turn reduce the rate of poverty in SSA.

Keywords: Access to Finance, Poverty, Panel Ordinary Least Squares, sub-Saharan Africa
POLLUTANT EMISSIONS, INSTITUTIONS AND ECONOMIC GROWTH IN NIGERIA

POLLUTANT EMISSIONS, INSTITUTIONS AND ECONOMIC GROWTH IN NIGERIA

Authors: I.O. Bankefa, P. A. Olomola, O. P. Olofin3 & M.O. Fatai
Year: 2020, Volume: 7, Number: 1
(0 downloads)
Abstract

The literature shows that to minimize the adverse effects of pollution on economic growth, the appropriate institutions must be put in place. While this is a plausible explanation, there are few evidences to confirm this assertion. This paper examined the dynamic effect of pollutant emissions and institutions on economic growth in Nigeria. Secondary data for the period of 1980-2015 were used and the data were sourced from the World Bank Development Indicators (WDI) and the Central Bank of Nigeria (CBN) Statistical Bulletins. VECM based impulse response and variance decomposition were used to analyze the data and estimate the model built for the paper. The results showed that democratic accountability (DA) has a positive (but not statistically significant) impact on economic growth while CO2 emissions have a negative and statistically significant impact on economic growth in Nigeria. The results also showed that institutions (although not statistically significant) cannot be overlooked in the growth process as far as Nigeria is concerned. Similarly, the impulse response function showed that a shock to CO2 emission would produce no immediate effect on economic growth but its effect in the medium term was negative before responding positively in the long run. In the same way, a shock to DA produced no immediate effect on economic growth but its effect in the medium term was negative with a significant negative response in the long run. The study concluded that a strong and efficient institution is needed to reduce the negative effect of CO2 emission on economic growth in Nigeria.

Keywords: VECM, institutions, Nigeria, growth, pollutions
TWIN DEFICIT HYPOTHESIS IN THE PRESENCE OF STRUCTURAL BREAKS IN NIGERIA

TWIN DEFICIT HYPOTHESIS IN THE PRESENCE OF STRUCTURAL BREAKS IN NIGERIA

Authors: Ismaila Akolapo Samotu & Monica Adele Orisadare
Year: 2020, Volume: 7, Number: 1
(0 downloads)
Abstract

Empirical studies on twin deficit debate have focused on how current account imbalances are related to budget imbalance without considering underlying structural forces associated with domestic economy. The main objective of this paper is to examine the effect of structural break on the validity of twin deficit hypothesis in Nigeria and to examine the dynamic interaction among the variables. The study employs the ARDL approach, variance decomposition, VAR-impulse response and Granger causality test to show dynamics between budget deficit and the current account deficit in Nigeria. The empirical results from ARDL indicate that budget deficit exerts a positive effect on the current account deficit both in the long run and short run implying the validity of twin deficit hypothesis in Nigeria. Granger causality test confirms no causality between the twin deficits. The impulse response result also reveals negative effect of shock in fiscal deficit on current account deficit while variance decomposition result shows that current account deficit substantially influences fiscal deficit variance. However, from all the methodologies adopted, structural break does not significantly affect the relationship between the deficits. The policy implication is that persistent increase in budget deficit tends to deteriorate current account balance. Therefore, government of Nigeria should exercise caution in using budget deficit to influence current account deficit even when structural break effect is considered.

Keywords: ARDL, budget deficit, current account deficit, Nigeria, structural break, twin deficit
ECONOMIC GROWTH, MOTORISATION AND ROAD TRAFFIC SAFETY IN NIGERIA

ECONOMIC GROWTH, MOTORISATION AND ROAD TRAFFIC SAFETY IN NIGERIA

Authors: 1Oluwayemi A. Ayodeji , Yinusa O. Dauda & Lukman O. Oyelami
Year: 2020, Volume: 7, Number: 1
(0 downloads)
Abstract

The yearning for increasing economic growth has been the focus of many policy makers in the country. This noble objective has come with an increasing level of household wealth which is displayed in form of increasing motorization and may as well compromise the traffic safety in the country. In this connection, this study examines the dynamic causal relationship among economic growth, motorisation and road traffic safety in Nigeria. This is with a view to determining the nexus of economic growth, motorisation and road traffic safety in the country for the period of 1970-2016. To achieve this, secondary data on Gross Domestic Product, Gross Domestic Product Per Capita, Population, nominal exchange rate and the general level of education in the country were sourced from World Development Indicator, Central Bank of Nigeria and Federal Road Safety. The data were analyzed and estimated using the Autoregressive Distributed Lag (ARDL). This was necessary to address the expected endogenity problem and non-uniform stationarity level in our variables. The results from the study demonstrate a unidirectional causal relationship flowing from motorisation to road traffic crash. Similarly, there is unidirectional causal relationship flowing from economic growth to motorisation in Nigeria. In addition, increasing road traffic crash can hamper economic growth. The study concludes that economic growth contributes to road traffic crash through increasing motorisation in Nigeria. However, an improved level of drivers’ education and regulatory effectiveness are required to stem the ugly trend.

Keywords: Macroeconomics; Safety; ARDL; Nigeria.
ECONOMIC GROWTH AND POVERTY REDUCTION IN NIGERIA: THE ROLE OF INSTITUTIONS

ECONOMIC GROWTH AND POVERTY REDUCTION IN NIGERIA: THE ROLE OF INSTITUTIONS

Authors: James Temitope DADA*& Oyinkansola FANOWOPO
Year: 2020, Volume: 7, Number: 1
(0 downloads)
Abstract

It is worthy of note that the link between economic growth and poverty can be altered in the presence of institutions. The role quality institutions play in economic growth and poverty cannot be overemphasized as it has continued to receive attention from academia and policymakers. Institutions can serve as substitutes or complements in affecting poverty when interacted with economic growth. This study examined the role of institutions in the nexus between economic growth and poverty reduction in Nigeria over the period 1984-2018, using the Autoregressive Distributed Lag cointegration technique. Two institutional quality variables were employed, namely; corruption control and political stability. Poverty was measured using per household consumption, while economic growth was proxied by per capita income. The study found that economic growth and institutions had positive effects on per household consumption in both the short and long run. This implied that as institutions and economic growth increased, per household consumption also increased, while poverty reduced. Furthermore, in the short run, the interactive effect of institutions and economic growth on per household consumption was negative, suggesting that the interaction of institutions and economic growth had a positive effect on poverty. This showed that institutions and economic growth played substitutive roles in poverty reduction in the short run. The interactive effect of institutions and economic growth in the long run was however positive on per household consumption, causing an increase in household consumption and a decrease in household poverty. This showed that institutions and economic growth played complementary roles in reducing poverty in Nigeria in the long run. The study concluded that strong institutions and sound economic growth are important in combating poverty.

Keywords: Economic Growth, Poverty Reduction, Institutions, Corruption Control, Political Stability, Nigeria
ASYMMETRIC INFLUENCE OF FINANCIAL DEVELOPMENT ON UNEMPLOYMENT IN NIGERIA

ASYMMETRIC INFLUENCE OF FINANCIAL DEVELOPMENT ON UNEMPLOYMENT IN NIGERIA

Authors: Folorunsho M. Ajide
Year: 2020, Volume: 7, Number: 2
(0 downloads)
Abstract

The existing studies show conflicting results in the interaction between unemployment and financial development. In this study, we examine the asymmetric effect of financial development on unemployment in Nigeria. Using Nonlinear Autoregressive Distributed Lag (NARDL) technique to analyse data spanning for a period of 1980-2017, the results show the existence of long run equilibrium among the variables. The Wald test confirms that there is asymmetric linkage between financial development and unemployment in the long run and short run. The findings confirm that the positive components’ effects are more when compared with the negative components’ effect of financial development on unemployment. There is need to have a policy in place to boost job creation and employment opportunities via conducive financial market development conditions which can be sustained even in the long run. Overall, the study shows that financial sector development is an essential component of the economy that influences job creation and unemployment asymmetrically.

Keywords: Finance, Unemployment, Asymmetries, Nigeria

About Europub

EuroPub is a comprehensive, multipurpose database covering scholarly literature, with indexed records from active, authoritative journals, and indexes articles from journals all over the world. The result is an exhaustive database that assists research in every field. Easy access to a vast database at one place, reduces searching and data reviewing time considerably and helps authors in preparing new articles to a great extent. EuroPub aims at increasing the visibility of open access scholarly journals, thereby promoting their increased usage and impact.