Department of Economics

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Browsing Department of Economics by Author "Adekoya, K.I."

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    Open Access
    A comparative analysis of the impact of current account balances on economic growth of sane countries
    (International Journal of Development and Sustainability, 2018) Ogunniyi, M.B.; Iwegbu, O.; Adekoya, K.I.
    This study investigates the impact of current account balance on economic growth in SANE countries which comprises of South Africa, Algeria, Nigeria and Egypt. A comparative study is conducted on the impact which current account balance has on each country’s economic growth. Various theoretical expositions have led to contradictory conclusions on the impact which current account balance has on economic growth. To achieve the objective of this study, ARDL estimation technique is employed to investigate the comparative analysis and fully modified panel OLS (FMOLS) is employed to investigate the overall impact of current account balance on economic growth. It was discovered from the study that current account balance has a significant negative impact on economic growth for Algeria, Egypt and Nigeria while it has a significant positive impact on economic growth for South Africa. The implication of this finding is that the structure of an economy with respect to her main source of foreign exchange earnings determines the impact of such activities reflected by her current account balance on the country’s economic growth. It is therefore recommended that special attention should be paid to the diversification of the export base. This can principally be through technological innovations, agriculture and so on. Therefore, the mitigation or neutralization of the effect of any short fall or negative shock in the oil sectors can only be achieved by the implementation of reforms and policies that will reduce dependence on oil and promote dependence on the non oil sectors.