Now showing 1 - 5 of 14
- 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 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 AccessExternal shocks and macroeconomic responses in Nigeria: A global VAR approach(Taylor and Francis, 2016-09-12) Oyelami, L.O; Olomola, P.A.This study investigates the macroeconomic responses of the Nigerian economy to external shock between 1986 and 2014. Specifically, we examine the effect of oil price shocks and macroeconomic shocks from developed trading partners on Nigerian macroeconomic performances in order to establish a pattern of reactions to these shocks in the country. We employ global vector autoregression (GVAR) comprising of the US, EU, China, Japan and Nigeria as the reference country. The adoption as of this method of estimation is necessitated by its capability to effectively model complex high-dimensional system and also offers adequate tools to deal with the curse of dimensionality that can arise from a study of this nature. Having critically examined the econometric properties of our GVAR model, the results from our estimation based on impulse response function show that oil price shocks have a direct effect on real gross domestic product and exchange rate in Nigeria but variables like inflation and short-term interest rate do not show immediate response to the shocks. The results also indicate that macroeconomic variables such as short-term interest and inflation show immediate responses to shocks to counterpart variables in developed countries. Based on this, the study concludes that the Nigerian economy is vulnerable to external shocks and such shocks are not limited to oil price shocks. Other forms of shocks such as growth spillover and financial shocks from developed countries are also relevant in shaping macroeconomic performances in Nigeria.
- ItemOpen AccessDeterminants of Financial Inclusion in Sub-Sahara African Countries(Covenant Journal of Business & Social Sciences, 2017-12-16) Oyelami, L.O; Saibu, O.M; Adekunle, B.SAs the exclusion of large percentage of the population has been identified as a major obstacle to inclusive growth and development in developing countries of the world it is against this background this study investigates the determinants of financial inclusion in Sub-Saharan Africa using Panel Autoregressive Distributed Lag (ARDL). The results from the study reveal that financial inclusion in the region is meaningfully influenced by both demand side factors (level of income and literacy) and Supply-side factors (Interest rate and bank innovation proxy by ATM usage). The government in the sub-region should put a policy in place to promote financial literacy and other forms of innovative banking in their respective country as this will go a long way in promoting financial inclusion in the region.