Department of Economics

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Browsing Department of Economics by Author "Abdulkareem Abdulhafis Olagunju"

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    Effect of Ethnic Fractionalisation on Informality in Sub-Saharan Africa.
    (Al-Hikmah Journal of Economics, 2024) Abdulkareem Abdulhafis Olagunju
    This study examined the effect of ethnic fractionalisation on informality in Sub-Saharan Africa, utilising two measures of informality (viz: Dynamic General Equilibrium (DGE) and Multiple Indicator Multiple Cause (MIMIC)) and employing a theoretical proposition on ethnic fractionalisation and economic dualism theory as the theoretical framework. Conducting a unit root test and then using the Kao panel test for the cointegration of data from 1993 to 2021, the paper aimed to establish a long-run relationship among the variables. Panel ARDL estimation technique was then utilised to analyse the data. Findings revealed a positive effect of ethnic fractionalisation on the informal sector, in line with the proposition advanced in the paper. Also, the control variables, comprising economic development, unemployment, educational attainment, and World governance combined indicators, were all found to have the expected effects on informality. The study concluded with recommendations for policymakers to formulate and implement policies aimed at reducing the rather undesirable effect of ethnic fractionalisation on the size of the informal economy and to also check the extent of informality effectively through other targeted interventions.
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    Effect of Unemployment on Output Growth in Nigeria: Evidence from Okun’s Law.
    (Al-Hikmah Journal of Economics, 2024) Abdulkareem Abdulhafis Olagunju
    Abstract The study investigated the effects of unemployment on economic growth and the agricultural, industrial and services sectoral output growth. To achieve this, economy wide output growth and sectoral output growth models were specified, using the neoclassical theory-based economy-wide and sectoral growth accounting equations as the main theoretical framework. In addition to the unemployment rate, 5 control variables (viz: labour force growth, private capital stock growth, foreign direct investment, government expenditure and literacy rate) were also included in all equations while the 3 sectoral output growth variables for the agricultural, industrial and services sector were the dependent variables. The OLS estimation method was employed, appropriate diagnostic tests were carried out, and remedial econometric measures were adopted to ensure the validity of the model estimates. Annual data covering the period of 1999 to 2022, sourced from the CBN, the World Bank and the IMF databases were employed in the analysis. It was found from the study that unemployment has a negative effect on economic growth as well as output growth in each of three sectors (viz: agricultural, industrial and services). Based on this finding, it is recommended that the authorities formulate and implement policies that will reduce the unemployment rate.