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- ItemTHE EFFECT OF FOREIGN DIRECT INVESTMENT AND MULTINATIONAL CORPORATIONS ON SUSTAINABLE DEVELOPMENT IN NIGERIA: HALO OR HAVEN? EMPHASIS ON CO2 ANTHROPOGENIC EMISSION(Universiti Kebangsaan Malaysia, 2010-10-15) Adam, Shehu Usman; Turkahan, Ali Abdul ManapAlthough data on single-country environmental indicators exist in short-span leading to the use of cross-section or panel data by most related studies, there has been attempts to understand country-specific analysis of FDI-Environment nexus. This study explores the relationship between FDI and the operations of Multinational Corporations (MNCs) on sustainable development in Nigeria- the major destination for FDI inflow to West Africa. Using CO2 emission as the measure of environmental degradation, we employ annual data spanning from 1970 through 2005 to investigate whether the “pollution haven” or “pollution halo” scenario holds in Nigeria. By applying the Autoregressive Distributed Lag (ARDL) approach to cointegration to examine the nature of the relationship, we found that FDI is negatively related to CO2 emission. This suggests a scenario of “pollution halo”; implying that if CO2 is considered a measure of environmental degradation, more FDI inflow is beneficial and compatible with sustainable development since we found no evidence for “pollution haven” for the aggregate FDI inflows to all sectors. We suggest future research in this area to employ sector-specific data on FDI inflow so that a direct delineation could be made between the environment-degenerating and environment-benign destinations of FDI inflows to Nigeria. Besides, other measures of environmental quality such as water pollution and the destruction to aquatic habitat, most especially in the South-South region of Nigeria, could also be explored since the result from this study may not be generalized for other measures of environmental quality (Deacon and Norman, 2006). The unique contribution of this study lies in the fact that, it is the first single-country focused study to examine FDI-Environment nexus for the case of Nigeria.
- ItemFinancial Inclusion, Institutional Quality, and Poverty Reduction in Nigeria.(Kwasu, 2024-12) Akande, Rashidat Sumbola; Abdulkareem, Hauwah K. K.; Olohunlan, AminaPoverty alleviation remains a global challenge and at the fore front of the economic development of developing economies like Nigeria. Although it has been established in literature that financial inclusion is crucial for poverty reduction, few studies have examined the role of institutional quality as an important determinant of poverty reduction. Hence, this study examines institutional quality and financial inclusion on poverty reduction in Nigeria. The paper is anchored on the Capability Approach and adopts the Human Development Index (HDI) as a proxy for poverty reduction as it measures basic human capabilities. With time series data from 1987 to 2022 the VECM is employed as the estimation technique given the established long-run relationship obtained from the ARDL bounds test cointegration technique. Findings reveal that in the short run, financial inclusion and institutional quality are statistically significant and positive for poverty reduction. In the long run, however, these relationships become insignificant. This study, therefore, elucidates on the opposing directions of financial inclusion and poverty alleviation in the country with institutional quality also shown to be vital. Consequently, financial inclusion and institutional quality are found to be necessary, but insufficient conditions for poverty reduction. Hence, while financial inclusion and good institutions are important in the short run, long-term poverty alleviation strategies must be comprehensive and multi-sectoral in approach to complement, consolidate, and sustain the poverty reduction potentials of financial inclusion and high-quality institutions.
- ItemEffect of Ethnic Fractionalisation on Informality in Sub-Saharan Africa.(Al-Hikmah Journal of Economics, 2024) Abdulkareem Abdulhafis OlagunjuThis 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.
- ItemEffect of Unemployment on Output Growth in Nigeria: Evidence from Okun’s Law.(Al-Hikmah Journal of Economics, 2024) Abdulkareem Abdulhafis OlagunjuAbstract 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.
- ItemEconomic Diversification in Recession: A Case of Nigerian Agriculture as a Sign Post for National Development and Sustainable Growth.(IJASEPSM International Journal of Advanced Studies in Economics and Public Sector Management., 2017-01-15) Shitu, Abdul MuftahNigerian economy after 56 years of independence, has witnessed once again a downward trajectory in her efforts to achieve sustainable development. The current world statistics in African economy in the mid-year of 2016 has rated Nigerian economy as second largest economy next to South Africa with Gross Domestic product (GDP) of $296 billion U.S. dollars. South Africa economy was considered as the largest economy in African continent with GDP of $301 billion U.S. dollars during the second and third quarter of 2016.This is a reversed trend. In 2014 Nigerian economy was rated as the largest and leading economy using 2014 rebase figures. Recently, International Monetary Fund (IMF) observed that by the end of the year (2016) Nigerian economy would be the largest economy in Africa with GDP of $415 billion U.S. dollars. The present recession faced by the economy has led to a negative growth of 2.06% on the first and second quarters of the year (2016). Economic diversification discourse in recent times in the country with regard to policy of 'BUHARINOMICS' (i.e. change Agenda) as an attempt to re-engineering the economy is focused and dominated on development of agriculture and other non-oil exports. Agriculture has become an arrow head and engine for economic recovery, growth and diversification. This study therefore examines the significant role and obvious comparative advantage of agricultural production as an intervention variable to solving poverty and economic recession. To this end, the paper adopts historical, evaluative and current issues or perspectives to analyze the importance of the sector to Nigerian economy. Neoclassical model and Agricultural Development Strategy were incorporated into the study to investigate and analyze constraints and challenges in Nigerian agriculture which has been abandoned for decades because of wealth of oil and gas production (Dutch Disease).In order to make the sector a sign post for accelerated growth and development, the paper concluded that increased expenditures (i.e. spending), savings and capital investments by government and private initiatives must be sustained in the sector. This would quicken recovery and induce increased agricultural productivity in the economy thereby leading to forward and backward integration in the economy.