This study was set out
to evaluate the impact of government revenue on the growth of the Nigerian
economy. Using time-series data covering the period 1981 to 2018 and adopting
the ARDL framework, the study tested for both short-run and long-run relationship
including adjustment profile. It was found that economic growth is a positive
and significant function of oil revenue in Nigeria within the studied period.
Nonoil revenue was found to positively but non-significantly affect the growth
of the Nigerian economy. A long run cointegrating relationship was found
amongst the studied variables with the error correction model showing an 11%
adjustment speed from short-run disequilibrium to long run equilibrium. Based
on the finding, it is recommended that government should diversify the economy
to allow for enhanced revenue and growth.
Showing posts with label ARDL. Show all posts
Showing posts with label ARDL. Show all posts
Thursday, December 26, 2019
RESPONSIVENESS OF THE GROWTH OF THE NIGERIA ECONOMY TO THE REVENUE PROFILE OF THE GOVERNMENT
Monday, September 9, 2019
DETERMINANTS OF CAPITAL FLOWS INTO NIGERIA: AN AUTOREGRESSIVE-DISTRIBUTED LAG (ARDL) APPROACH
The rate of capital
flows into the emerging markets is alarming and has become a subject of debate
in the literature. It is mostly believed that capital flows are beneficial to
the economies of the developing countries as it engenders the efficient
allocation of global resources thereby increasing the availability of capital
required for investment and economic growth. Despite the general belief, the
macroeconomic variables that determine capital flows remain controversial. In
the light of this, the study attempted to examine the long-run and short-run
determinants of capital flows into Nigeria. The study employed secondary data
sourced from the Central Bank of Nigeria (CBN), FRED Economic data, and World
Development Indicator between the periods of 1986-2014. Using the econometric
technique of Autoregressive Distributed Lag Model (ARDL), the study found that
exchange rate (LnEXR) and stock market prices (LnSP) are important determinants
of capital flows into Nigeria both in the short-run and long-run. It is,
therefore, recommended that the government, through its policies, should make
concerted effort in boosting the activities at the stock market in a bid to
attract capital flows into the country.
Subscribe to:
Posts (Atom)