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OPENNESS AND TOTAL FACTOR PRODUCTIVITY GROWTH DYNAMICS: Evidence from Nigeria
Adeolu O. Adewuyi
Economic Development Department, NISER, Ibadan
&
Trade Policy Research and Training Programme (TPRTP)
Department of Economics, University of Ibadan.
E-mail:aoadewuyi@yahoo.co.uk
ABSTRACT
This paper quantifies the contribution of total factor productivity (TFP) to real output growth in Nigeria between 1970 and 2000. It examines the impact of trade openness on total factor productivity growth (TFPG) of the economy. Data Envelopment Analysis (DEA), which is a non-parametric approach to productivity measurement, is adopted to quantify the contribution of TFP to real output growth. Dynamic error correction models are estimated to capture the impact of trade openness (and some other related factors) on TFP growth.
Empirical results show that the Nigerian economy witnessed poor total factor productivity growth performance during the period 1971 to 1985. Nevertheless, there was a rise in TFP during the structural adjustment programme (SAP) period. It was found that the favourable performance recorded during the SAP period could not be sustained in the post-SAP period (1994-2000), as the economy experienced a fall in TFP. Empirical findings on the impact of openness (trade policy) on total factor productivity growth in Nigeria show that foreign direct investment, increased import penetration, non-oil export production activities and black market premium promote total factor productivity growth. Further, empirical results indicate that oil export and inflation produce negative and significant impacts on TFPG. This implies that the elimination of distortions in the foreign exchange market as a result of deregulation policy would promote efficiency, which in turn would foster TFPG. The results suggest that a higher BMP enables government to allocate scarce foreign exchange to the most productive activities in the economy. Based on these findings, some recommendations are offered to aid policy design to promote TFP growth in Nigeria.
GLOBALIZATION AND ECONOMIC DEVELOPMENT:
Evidence from the Nigerian Financial Sector
Olayinka O. Adenikinju
Department of Economics
Bowen University, Iwo
Osun State, Nigeria
and
Edwin E. Enofe
Department of Economic Management
Centre for Management Development
Shangisha, Lagos, Nigeria
ABSTRACT
This paper examines the extent to which the Nigerian financial sector has performed in international financial integration (IFI) within the context of globalization. This was done in relation to the extent that IFI has contributed to the economic development of Nigeria. Globalization, as a concept, is predicated on a doctrine of openness; hence an econometric model that serves as an impetus to IFI was developed and applied to this study. The a priori expectations were largely not satisfied in the Nigerian case, indicating that the financial sector of the economy has not been appropriately integrated into the global economy, and hence is not maximally contributing to Nigerian economic development. The paper recommends that sound economic and financial policies and their appropriate measures be pursued in Nigeria, and that all strategies to drive exports and reduce imports for a better real exchange rate should be adopted.
DETERMINANTS OF FEMALE LABOUR
SUPPLY IN NIGERIA
M. O. Olusoji
Centre for Management Development (CMD)
Lagos
email : olusojincema@yahoo.com
ABSTRACT
This paper focuses on the factors influencing the hours of labour put in by women with respect to formal and informal sector employment in the Nigerian economy. A regression analysis was carried out to investigate the differences in hours put in by women in both sectors and in each of the sectors separately. It was discovered that the hours worked were determined by the respondents' income, family size, relationship with household head, sector of participation, education, and location. It was observed that younger and single women work longer hours than older and married women. In addition, women with tertiary education work less hours than women with less education. The hours of work in formal employment is determined by the respondents' income, marriage type, education, husbands' education (tertiary), religion (Christianity), relationship with household head, ethnic origin, location and unemployment.
PUBLIC EXTERNAL DEBT SERVICING AND GOVERNMENT SPENDING ON HEALTH CARE SERVICES IN NIGERIA:
A Calibration Analysis
M. A. Ijaiya
Department of Accounting and Finance
University of Ilorin
Ilorin, Nigeria
ABSTRACT
The persistent decrease in government spending on health care services can be linked to the increases in external debt servicing that Nigeria has experienced over the years. Using a simple linear regression and calibration analysis, this paper aims therefore, to examine the influence of external debt service on government spending on health care services. The result obtained shows that government would require a significant reduction in it's external debt servicing, to the tune of ?108.38 million, for it to spend as much as ?163.34 million on health care services annually.
OUTPUT GROWTH AND STOCK MARKET DEVELOPMENT
NEXUS IN NIGERIA: An Empirical Analysis
Ndubisi I. Nwokoma
Department of Economics
University of Lagos
email: ndugoodman@yahoo.com
ABSTRACT
Over the years, governments in Nigeria have instituted various economic reform programmes which have severally impacted on the various sectors of the economy. In the stock market, these reforms, coupled with the introduction of central securities clearing and market automation among others, there have resulted in significant increases in market capitalization and other performance indicators, particularly in the post-1999 democratic era. These developments have enhanced market liquidity as well as investor returns. This study evaluates the extent to which this stock market boom has impacted on the growth of the macro economy through investment and output growth as well as socioeconomic welfare enhancement. By the use of vector autoregressive models representing possible channels through which stock market development affects the economy, the study utilizes impulse response analyses to investigate whether any positive impact of this stock market growth exists and, if it does, its significance in enhancing productivity and socioeconomic welfare in Nigeria.
THE EFFECT OF DIVIDEND POLICY
ON MARKET PRICE PER SHARE
Akintoye Ishola Rufus
Department of Accounting
Olabisi Onabanjo University
Ago-Iwoye, Ogun State
ABSTRACT
This is an empirical analysis of the dividend practices in some selected Nigerian quoted companies. The analysis, which was based on data collected through the administration of a structured questionnaire on staff of the selected companies, interviews with some shareholders, and some (secondary) data, explained the dividend behaviour of Nigerian quoted companies and the effect of their policies on share market prices. The study revealed that a majority of Nigerian quoted companies strived hard to pay the 60 per cent of total profit as dividends, as recommended by the guidelines of the Productivity, Price and Income Board (PPIB); but this is subject to 12.5 per cent withholding tax (ie, before this Tax Act was repealed in the late 1993). The findings also revealed that dividends paid over the years as a result of stable dividend policy influenced the market prices of various companies shares. And this supports the dividend supremacy school of thought, which holds that dividend is a relevant variable in a firm's valuation.
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