Economics-Scholarly Publications

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    Open Access
    Budget deficit on economic development in Nigeria
    (Modern Business Press, 2024-06) Nnoruga, O.M.; Olunkwa, N.C.; Iwegbu, O.; Nwokoma, N.I.
    This study investigates the effect of budget deficit on economic development, using time series data spanning from 1981 to 2023. To determine the effect of budget deficit on economic development, the study employs the Autoregressive Distributive lag and bound cointegration technique with the results indicating that a long-run equilibrium relationship exists between budget deficit and economic development in Nigeria over the period. The result further affirms that budget deficit has a negative and significant effect on per capita income and the human development index in the long run. It however, it does not have any effect on the human development index in the short run. Based on the findings, the study recommends that policy makers should prioritize strategies aimed at addressing budget deficits while simultaneously safeguarding investments in human capital and fostering inclusive economic growth. This necessitates implementing measures to enhance fiscal discipline, such as rationalizing government spending, improving tax administration, and exploring revenue diversification options.
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    Open Access
    Effectiveness of electronic banking on Nigeria’s industrial and service sector
    (Unilag Press, 2022) Iwegbu, O.; Nwokoma, N.I.
    Electronic banking has indeed transformed the operational system in the banking sector and has driven financial inclusion in Nigeria’s industrial and service sector. The main aim of this study is to examine the effectiveness of electronic banking on Nigeria’s industrial and service sector between the periods of first quarter 2012 to the fourth quarter, 2020. The study employed the Autoregressive Distributed Lag Model method to estimate the long-run relationship among the variables. The result shows that only electronic transactions via the mobile payment platforms have significant impact on industrial sector output in the long run while the electronic transactions via the mobile payment platforms and ATMs have positive impact on industrial sector output. In the long run, only electronic transactions via ATMs have positive impact on services sector contribution to GDP. The study recommends that, the government should set up effective and committed agencies and initiatives that would further help boost mobile banking operations in the services and industrial sector. It is expected that these agencies and initiatives would help to accelerate mobile financial services in Nigeria which would ultimately increase the people's financial access to a greater extent in the upcoming days. Also, some of the electronic banking channels have a negative impact on the services and industrial output, this id corroborated to the unwillingness using the electronic platforms due to e-banking frauds. Thus, conscious efforts must be made by the monetary authority to ensure that each deposit money banks have effective cyber security team which would help to monitor and prevent e-banking frauds that will likely arise due to the use of electronic channels in banking transactions.
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    Open Access
    Monetary policy, development finance institutions and agricultural sector performance in Nigeria
    (Fiscal and Financial Economists Society of Nigeria in conjuction with Fiscal and Monetary Economics Forum, Department of Economics, University of Lagos: Lagos, Nigeria., 2022) Iwegbu, O.; Nwaogwugwu, I.C.
    This study examines the relative impact of monetary policy stance and the activities of development finance institutions on agricultural sector performance. The study asserts that the relatively unchanged monetary policy stance of the Central Bank weakens its effectiveness on agricultural sector performance as empirically proven and thus, this study employs the Autoregressive Distributed Lag Model (ARDL) with data spanning through 1981 till 2019 to achieve its objective. The results from the study show that although the monetary policy is effective in stimulating the activities of the agricultural sector in the short run, it is not in ensuring long term improvements of the sector in the long run. However, the activities of the development finance institutions proved effective in enhancing the productivity of the sector by providing liquidities on a long-term basis. The policy implication of this study is that the conventional monetary policy does not stimulate long term improvements in the agricultural sector while activities of the development finance institutions such as the provision of loans are more effective in stimulating the performance of the sector. Monetary authority through regulations will need to devise more effective ways of empowering the ability of the development finance institutions to mobilize financial resources that are needed for the stimulation of the activities of the sector.
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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
    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.