Department Of Social Sciences
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Browsing Department Of Social Sciences by Author "Oyelami, Lukman O"
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- ItemOpen AccessAlternative Payment Systems Implication for Currency Demand and Monetary Policy in Developing Economy: A Case Study of Nigeria(International Journal of Humanities and Social Science, 2013-05-16) Oyelami, Lukman O; Yinusa, Dauda OThis paper investigates the implication of the alternative payment systems on currency demand and monetary policy using monthly data between 2008 and 2010. Vector Error Correction Model (VECM) was used due to endogenous assumption that predicated our model and the co-integrating behavour of variables employed. Previous theoretical and empirical studies on this issue are scarce for developing economies and to best of our knowledge none exists for Nigeria. The empirical results from Impulse-Response reveal that internet payment and mobile money substitute currency while credit card (ATM) and Point of Sale (POS) compliment it. Similarly, Apart from debit card (ATM) and internet payment (WEB) all other payment channels respond negatively to innovation in interest rate throughout the periods including currency. This finding may have serious implication for the conduct of monetary policy especially in developing countries as it alternative payment systems seem to dampen the effectiveness of monetary policy
- ItemOpen AccessBank recapitalization and real sector performance: Empirical evidence from Nigeria(International journal of finance and banking studies, 2014-07-20) Akinkoye, Yemi E; Oyelami, Lukman OThis study investigates the impact of bank recapitalization on real sector performance in Nigeria. Specifically, the study examines the direct effect (bank investment) and indirect effect (loans and advances to real sector) on real sector output growth between the period 1986 and 2012.This study departs from previous studies because we aggregate the three leading sectors (agriculture, manufacturing and building and construction) of the Nigerian economy to arrive at our real sector index. Also, having carefully subjected our data to necessary econometric tests we employed chow test for structural break to test for the existence of policy shift between bank capital base and loan to the real sector of the Nigerian economy as a result of bank recapitalisation policy .Similarly, OLS estimates was used to determine the direct and indirect effect of bank capital base and real sector output growth. The results from structure break tests reveal that bank recapitalization policy causes policy shift in bank capital base and loan to real sector thus the policy is of significant impact to real sector performance .In corollary, the result from the OLS strongly indicates that bank capital base has significant effect on realsector output growth directly and indirectly. We then conclude that Nigerian banks should be adequately capitalised as to play active intermediateting roles expected of them in this modern and competitive global economy
- ItemOpen AccessEffects of Oil Price Movement on Nigerian Macroeconomic Variables: Evidence from Linear near and Nonlinear ARDL Modelling(University of Tehran, Faculty of Economics, 2018-11-20) Oyelami, Lukman OThe study seeks to investigate both linear and nonlinear effects of oil price movement on critical macroeconomic variables (output, price and exchange rate) in Nigeria using ARDL modelling approach. Previous studies substantially relied on linear methods using a VAR approach to unravel these links without a clear conclusion. In an attempt to seek better results in this study, we employ both linear and nonlinear ARDL modelling techniques that inherently allows for asymmetric effect. Based on the theoretical proposition of ARDL methods that do require that all data are either stationary at the level or at first difference or the combination of the two. We perform unit root tests and other required econometrics tests. Consequently, linear and nonlinear ARDL estimation techniques were carried out. The results from linear and non-linear estimations indicate that oil price movement has statistically significant effects on critical macroeconomic variables in Nigeria (output, price and exchange rate) both in the short-run and long-run but there is evidence of asymmetric effect for output and exchange rate only. Therefore the study concludes there is no asymmetric effect of oil price movement on general price level in Nigeria but there are statistically significant asymmetric effects of oil price movement on output and exchange rate in the country.
- ItemOpen AccessExchange rate volatility and sectoral analysis of foreign direct investment inflows in Nigeria (1970–2009)(Inderscience, 2014-09-20) Oyelami, Lukman O; Yinusa, Dauda OThis paper investigates the effect of exchange rate volatility on oil and non-oil FDI inflows in Nigeria using vector error correction model (VECM) for the period 1970–2009. Previous theoretical and empirical studies on this issue produced conflicting results. The empirical results from short run dynamics show that bi-directional causal relationship exists between exchange rate volatility and non-oil FDI and no causal relationship exists between exchange rate volatility and oil FDI. But the results from forecast error variance decomposition (FEVD) indicate that there is no significant differential effect of exchange rate volatility on oil and non-oil FDI in Nigeria. This might suggests that there are other variables that drive oil FDI inflows apart from macroeconomic condition in Nigeria
- ItemOpen AccessGlobal Commodity Prices and Stock Market Nexus: Sub-Sahara African Perspectives(Acta Universitatis Danubius. Œconomica, 2019-06-12) Oyelami, Lukman OMany SSA countries are exports dependent and rely heavily on the global price of their primary commodities to make rational economic decisions. It is against this background this study investigates the level of interdependence between global commodities prices and stock market returns in selected SSA countries. For the purpose of this empirical investigation, two largest stock markets were selected based on market capitalization namely Johannesburg Stock Exchange (JSE) and Nigerian Stock Exchange (NSE). Specifically; we examined the relationship between global commodities prices and Stock market returns and the direction of causality between the variables following Eagle Granger causality procedures. In addition, we determined the effect of global commodities’ prices movement on stock market returns using ARDL estimation technique. The results of our analyses show that there is a significant long-run relationship between global commodities prices and stock market returns. Also, there exists a bi-directional causal relationship between global commodities prices and Stock market returns in the two markets. Furthermore, the results of ARDL estimation reveal that global commodities prices have short-run and long-run effects on stock market returns in the two markets.
- ItemOpen AccessMacroeconomic implications of trade diversification in Nigeria(CBN Journal of Applied Statistics, 2018-06-12) Oyelami, Lukman O; Alege, Philips OThis study seeks to examine the effects of trade diversification on macroeconomic performance in Nigeria. To achieve this, the study employs bound test of ARDL to determine the existence of cointegration between trade diversification and key macroeconomic variables. We further estimate the short-run and long-run effects of Intensive and Extensive trade diversification on Economic growth and exchange rate movements. The results from bound tests confirm co-integration between trade diversification and economic growth on one hand and trade diversification and exchange rate movements on the other hand. Similarly, the results from our estimations show that trade diversification can propel economic growth in the country. Also, the trade diversification can reduce movements in exchange rate especially extensive diversification thus preventing it from a substantial movement that can derail this important variable from its long-run equilibrium. The study recommends that policymakers should pursue vigorously both intensive and extensive trade diversification to propel economic growth and guarantee a stable exchange rate for the Nigerian currency