Department of Economics

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Browsing Department of Economics by Author "Adegboye, A.C."

Now showing 1 - 6 of 6
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    Open Access
    Does Access to Finance Enhance SME Innovation and Productivity in Nigeria? Evidence from the World Bank Enterprise Survey
    (African Development Review, 2018) Adegboye, A.C.; Iweriebor, S.
    The primary link between financial institutions and economic performance is the provision of resources by these institutions to businesses in order to drive enterprise development. In this study, the role of access to finance in enhancing innovation and productivity among Nigerian small and medium-sized enterprises (SMEs) is investigated using the World Bank Enterprise Survey (ES) dataset. Access to finance is categorized as external and internal to the firm. Using the logit estimation technique, the study finds that ease of accessing bank credit is the strongest positive force in driving all types of innovation among SMEs in Nigeria. In the same vein, the source of investment financing matters in terms of how it affects innovation: both internal and external sources improve investment in product, process, and organizational innovation, but only external financing has a significant effect on R&D spending and use of foreign licensed technology. Overall spending on R&D is only driven by access to external finance by the SMEs. The study also shows that increased access to finance may actually lead to productivity decline among SMEs in Nigeria.
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    Open Access
    Financial market environment and efficiency of microfinance banks in Nigeria
    (Ilorin Journal of Economic Policy, 2023-02-10) Adegboye, A.C.
    This study examines the efficiency of microfinance banks (MFBs) in Nigeria based on the financial market environment. The efficiency of MFBs is estimated using the DEA framework, while the market environment is considered with competition within the MFB sector and the entire financial system. The Tobit regression technique is used to estimate the impacts of a competitive financial environment on the efficiency of MFBs. The data used cover the period of 2010 to 2019 for 49 Nigerian Microfinance Banks. The study reveals a clear upward trend in the efficiency scores of the MFBs, although the gap between efficient and inefficient MFBs is found to be widening. Commercial-oriented MFBs are also found to be more efficient than socialoriented MFBs. Macroeconomic instability, external competition, and structural change in the economy are found to weaken the efficiency of MFBs, while the intra-sectoral competition, technology infrastructure, skills, and effective regulation boost efficiency. Also, factors that drive the efficiency of commercialoriented MFBs are different from those that drive social-oriented MFBS. Policies that help to refocus MFBs towards the core social operations and improve their efficiency are recommended.
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    Open Access
    Foreign Aid and Educational Development, in Sub-Saharan Africa: Does Domestic Institutional Capacity Matter?
    (West African Institute for Financial and Economic Management (WAIFEM)., 2021) Adegboye, A.C.; Alao-Owuna,; Osobase, A.O
    In this study, the effect of foreign aid on educational development is examined for countries in the sub-Saharan Africa region while taking into consideration the effects of policy capacity as intervening in the connection between aid and the education sector. Using data for 34 countries and for the period 1998 to 2017, the Fully Modified OLS technique is applied for the empirical analysis. The direct and indirect effects of both aid to education and educational expenditure are considered in terms of policy dimensions. It is found that aid to education directly improves educational access and efficiency but does not have a direct impact on either educational quality or share of budgets devoted to education by the countries in SSA. On the other hand, educational expenditure significantly improves both access and quality in the educational sector, but not efficiency. We also found that better policy capacity of SSA governments tends to improve the extent of aid effect on educational development (in terms of access, quality, efficiency or budgetary allocation). The major policy implication of the results is that the establishment and sustenance of quality institutions that support policy making and implementation in SSA is a veritable means of attaining effective linkages between educational resource use and outcomes in the region.
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    Open Access
    Long run analysis of tourism and economic growth in Nigeria
    (International Journal of Economic Policy in Emerging Economies, 2021) Ighodaro, C.A.; Adegboye, A.C.
    In this paper, the impact of tourism on economic growth in Nigeria is examined using a dynamic framework and data covering the 1983–2017 period. Tourism impacts are measured in terms of capital investment in the sector and contribution to total export revenues, while growth is considered in terms of growth in GDP per capita, services sector growth and aggregate employment. Using the autoregressive distributed lags (ARDL) approach to cointegration analysis, the study finds a unidirectional long run relationship running from tourism to economic growth in Nigeria. Moreover, it is found that the direct effect of tourism on growth is weak, rather a strong channeled impact of tourism sector development on economic growth in Nigeria is established. In the long run, tourism promotes services sector expansion and contributes significantly to overall employment growth in Nigeria
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    Open Access
    Structural Changes and Employment Growth in Sub-Saharan Africa: Does Demographic Structure Matter?
    (Economic Research Institute, Chung-Ang University, South Korea, 2023-06-12) Adegboye, A.C.; Arodoye, N.L.
    This study examines the effects of structural changes on employment growth in the sub-Saharan African (SSA) region using demographic structure as an intermediary factor. Data used covers 37 SSA countries for the period 2000 to 2018 and the Generalised Method of Moments (GMM) and decomposition techniques are employed to show the indirect and direct relationships respectively. Economic structure in the region is found to mainly promote total employment with services sector having a larger capacity for absorbing labour, especially in low-productivity activities. There is also evidence that demographic changes in SSA region, while acting as a strong base for drawing employment, has led to significant losses in productive employment yields. Countries with large labour force tend to produce highly vulnerable and less productive employment, especially for the youths. Demographic change, rather than economic structure, have more long run implications for employment in the SSA region.
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    Open Access
    Technology adoption, skill development and employment by SMEs in Sub-Saharan African Countries
    (2021) Adegboye, A.C.; Osobase, A.O.
    In general, technology adoption has been shown to matter for productivity growth, income expansion, and the overall welfare of societies. However, technology adoption by firms in recent times has evolved into a series of automation processes, artificial intelligence (AI), and robotics, with divergent implications for employment, especially for developing countries. While there are arguments that technology tends to reduce workspaces thereby making workers redundant, there are other views that consider modern technology as capable of creating better job opportunities, especially from smaller businesses. One clear issue is that investment in technology by SMEs can be associated with employment reallocation and substitution outcomes often involving difficult adjustments for firms and individuals. This is because technological change may be skill biased, requiring workers to develop new skills in order to fit into modern workspaces. Thus, widespread technology adoption by businesses may lead to high levels of displacement and unemployment. In this study, the effect of technology adoption by small and medium enterprises in sub-Saharan African (SSA) countries on employment are examined. The role of skills development in either aggravating or mitigating the technology-employment nexus is also investigated. For the analysis, the type of new technology adopted by businesses is considered in terms of product-oriented technology and process-oriented technology. The effects of both forms of technology adoption on employment are assumed to differ, especially with regard to skill-mitigating relationships. Data for selected African countries was obtained from the World Bank Enterprise Surveys. The study finds that SMEs with focus on technology acquisition tend to place less importance on employment. For those that have increased employment, skilled workers are the main target. It was also found that technology has improved entrepreneurial employment but has also led to less employment within smaller firms among SSA countries. In general, adoption of technology was found to be creating a demand-side barrier to the employment of low-skilled youth among SSA countries. The study therefore recommends a retooling scheme (in terms of technology-related skills) among young people that are transiting from education into the labour force in order for the job-seekers to be more relevant for employment. Programmes that support employers to expand quality apprenticeship and internship should also be encouraged in order for the youth to develop soft skills and skills that complement automation in the workplace should also be pursued by government.