...Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.10, 2013 www.iiste.org An Evaluation and Forecast of the Impact of Foreign Direct Investment in Nigeria’s Agriculture Sector in A VAR Environment Ayodeji Adetunji Idowu* Liu Ying Huazhong Agricultural University, No.1, Shizishan Street, Hongshan District, Wuhan, Hubei Province · 430070 · P.R. China * E-mail of the corresponding author: ayodeji.idowu@hotmail.com The research is financed by project (NCET-12-0868) New Century Excellent Talents and Project (2013PY017). Abstract This study evaluated and forecasted the impact of FDI in the agricultural sector from 1980-2007, specifically its impact on agricultural output and labor in a Vector Auto Regression (VAR) environment. Data used in this study were sourced from Central Bank of Nigeria (CBN) statistical bulletin (2009). Results from the analysis revealed that FDI in the period under review had no significant impact on agricultural output. In addition, results of the forecast estimates showed that the current volume of FDI would not significantly affect agricultural output but will have significant positive impact on labor (employment generation). This study recommended for increase in the volume of FDI and advised government and other stakeholders to seek FDI that will improve existing or introduce new technology in the agricultural sector and enhance domestic capacity or domestic investment, even if the opportunity...
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...Difference between China and Sub-Saharan in economic growth and development This essay will try to analyse the difference between China and Sub- Saharan region countries on the economic growth and development issue from an overall view. In order to contrast the different development and growth methods between china and a whole Sub-Saharan region of countries, the essay will introduce the solow model in order to simplify the analysis, because in order to conduct a precise research, too many factors need to be controlled, so introducing a model which can simplify but not change the fact is appropriate. The basic assumptions of the solow model remain unchanged in this essay because the first assumption of constant returns will stand as both China and Sub- Saharan countries are economy which are large enough “that the gains from the specialization have been exhausted” (D. Romer (2011), "Advanced Macroeconomics", McGraw–Hill, New York, 1996.). The second assumption which neglects other impacts on the economy development will be discussed in the later paragraphs like policy, population, human capital and so on. Figure 1. China and Nigeria’s annual growth rate of GDP per capita (%). Data source: World Bank, World Development Indicators Figure 2. China and Nigeria’s broad money of GDP per capita (%). Data source: World Bank, World Development Indicators Figure 3. China and Nigeria’s labor force of total population (%). Data source: World Bank, World Development Indicators ...
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...ECONOMIC IMPLICATIONS OF CONSTANT POWER OUTAGES ON SMES IN NIGERIA International Centre for Basic Research, 20 Limpopo Street, FHA, Abuja College of Engineering and Engineering Technology, Department of Electrical and Electronic Engineering, Michael Okpara University of Agriculture, Umudike, Abia State been identified [2]. A particular finding revealed the high cost of providing back-up energy (partly infrastructural) for SMEs which sometimes is as critical as three times the cost of publicly supplied electricity [3], [4]. In Nigeria and perhaps generally, SMEs classification is done on the basis of capital investment and employed labour force while other criteria could be the annual turnover or gross output [5]. Until very recently, energy was rarely cited as one of the problems militating against the development of SMEs in Nigeria and elsewhere. This study is built on the argument that, unlike larger businesses, the establishment and operation of SMEs promotes economic development which by extension, boosts a country’s GDP number [6] (see Fig. 1). A separate study identifies this link (between SMEs and GDP) but could not establish if it is actually responsible for economic growth [7] while another study presents a decreasing link of 51%, 39% and 16% of GDP being produced by SMEs in high-income, medium income and low-income countries respectively [8]. Elsewhere, it has been confirmed that SMEs were responsible for pulling the US out of economic slump and can therefore, serve...
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...The Monetary & Fiscal Policies in Support of Economic Transformation and Inclusive Growth in Nigeria Abubakar M. G 1. Department of Economics, Umaru Musa Yar’adua University, Katsina 2. Central Bank of Nigeria, Katsina. Phone: 08032838408 and 08023563415 Central BanEmail: gazayks@yahoo.com and magarzali@cenbank.org 1.1 Abstract There is a plethora of literature on Monetary/Fiscal Policies - economic development nexus. This has prompted renewed interest in inclusive Growth. This probably explains why governments and policy makers are now tinkering with ways to situate and develop a permanent solution to the widened gap in broad range of financial services which of course are necessary for inclusive growth. Financial inclusion otherwise known as “inclusive growth” can be seen as the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. Due to incessant desire to incorporate disadvantaged segment of the society into financial net, both monetary and fiscal authorities have embarked upon a robust strategy toward addressing the gap. The former (monetary authority) had set out a visible road map necessary for direct effect on savings, investment, rate of interest, pension and general form of financial services. While the later (fiscal authority) have been making a remarkable effort toward achieving sustained economic growth especially in rural areas, this would translate accelerated and friendly society necessary...
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...INTERNATIONAL ECONOMICS THEMES AND ISSUES MMN222154-13- AB THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA BY AZUMONYE M. CHUKWUEMEKE S1344407 INTRODUCTION Over the years, the debate on the role of foreign direct investment (FDI) as a factor that induces economic growth has received the attention of policy makers, researchers and international organizations (Tumala et al, 2011). There is no denying that most countries strive to attract foreign direct investment (FD1) because of its putative advantages as a tool of economic development. Therefore, this essay seeks to ascertain the extent at which growth in foreign direct investments (FDIs) influences economic growth in Nigeria in the long-run and investigated the empirical relationship between FDI and privatization. Nigeria, after independence began with an economy that was mostly driven by the public sector. According to Tumala et al (2007), Nigerian Enterprises Promotion Decree (NEPD) of 1972 imposed several restrictions on FDI entry, thereby earning the tag „the indigenization policy‟. It reserved 22 business activities exclusively for Nigerians, including advertising, gaming, electronics manufacturing, basic manufacturing, road transport, bus and taxi services, the media and retailing and personal services. Foreign investment was permitted up to 60 per cent ownership and provided that the proposed enterprise had, based on 1972 data, share capital of N200, 000 ($300,000) or turnover...
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...tribe, a caste, a racial category or minority language group. In Nigeria a high level of discrimination exist which has hindered Nigeria’s development. These include: I) RELIGION: in Nigeria a major religious discrimination is that between the Christians and Muslims. Every day crises in different parts of the country most especially in the north, Christians are killed every day, bombs are planted in places of worship which destroys structures, leads to land, air, and water pollution; all these are as a result of difference in belief and doctrines. All these hinder the development of Nigeria as a country. II) ETHNIC GROUPS: Nigeria as a country is blessed with different ethnic groups which incorporates different cultures. The difference in language, cultures and beliefs leads to discrimination. III) SOCIAL STATUS: in Nigeria the discrimination between the rich and the poor ones has been one of the major cause of discrimination, the rich don’t always want to associate with the poor talk less of helping the poor, therefore the rich will remain richer while the poor will continue to be poor when this happens there would be an extreme case of continuous poverty which will hinder development in the country. 2. Population: Closely linked to this is the population issue. If women see staying at home and bringing up children as their chief role, they will have more children than those who work. There is nothing wrong with having lots of children, as long as you can provide...
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...sustained economic growth and development, a society where opportunities for good health, nutrition and increase in wealth, national security and religious tolerant, adequate and improved infrastructure among others abound. However, it is disheartening to note that what are experienced today are increase in crime rates, political and religious uprising, corruption and other social vices. The situation is further worsened by the level youth unemployment in the country. Looking closely at the scenario, it is obvious that the ‘youths’ are the ones mostly involved. This group (youths), is supposed to be looked upon as the engine room of development in any country. Japan, China, India, USA, Great Britain and other advanced countries in the world made technological breakthrough because of the involvement of the youths. However, the Nigerian youths are yet to be recognized and their impact is yet to be felt. It is in view of this that this paper is structured to explain the need for reintegrating the youth as a panacea for the security challenges in Nigeria. Operational Definition of Terms In order to make this article explicit, the following definitions of terms are given as used in the text. Youths – These are part of the population who are active and their ages fall range between 18 – 45 years. Reintegration – A process of educating, rehabilitating, accepting and engaging the youths to be productive and useful in a society. Panacea – Solution to problem to socio-economic challenges...
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...Entrepreneurship in Nigeria Okezie A. Ihugba Alex Odii Asoluka C. Njoku Department of Economics, Alvan Ikoku Federal College of Education, Owerri-Imo State, Nigeria Doi:10.5901/ajis.2012.v2n5p25 Abtsract The success of generating income for majority of rural and urban dwellers with no formal paid employment highly depends on Entrepreneurship. They are the backbone of economic development all over the world and play important role for employment, income and societal changes, particularly in transition economies like Nigeria. This paper is concerned with the nature and the extent to which entrepreneurship in Nigeria has been developed so far, and outlines the initiative by government and also the main current and future challenges and perspectives for the development of entrepreneurship. The study revealed that such initiatives by government failed abysmally due to over bearing bureaucracies, corruption, inadequate and inefficient infrastructural facilities and maladministration. The paper concludes that entrepreneurship miracle in other country is an engine for job creation; innovation and diversity and Nigeria’s entrepreneurs have a long way to go before they can effectively drive changes in the economy and recommends that Government (policy makers) should genuine recognize the essence of entrepreneurship to economic development by providing the enabling environment for private sector led investment for economic development and also provide adequate infra-structural facilities (water, electricity...
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...PERSONALITY FACTOR IN THE CONDUCT OF NIGERIA’S DIPLOMACY: A COMPARATIVE STUDY OF THE OLUSEGUN OBASANJO AND MUSA YAR’ADUA ADMINISTRATIONS, 1999-2000 Proposal submitted by Oluwatoyin Alabi to DR. David Aworawo, of the Post Graduate School, University of Lagos. In partial fulfillment of the Requirements for the award of the Degree: Masters of International Relations and Strategic Studies. (MISS) AUGUST 2012 PROPOSAL This work, adopting a multidisciplinary approach, seeks to analyse aspects of Nigeria’s diplomacy, specifically the effect of the leader’s personality on the conduct of Nigeria’s external relations. To effectively do this, the work shall comparatively assess Nigeria’s diplomacy under Presidents Obasanjo and Yar'Adua from 1999-2010. Seeking to see the effect their personality type had on the manner, trends and approach to Nigeria’s diplomacy during the period. On record President Obasanjo undertook a shuttle diplomatic effort across the globe especially between 1999 and 2002, this is said to have reintegrated Nigeria into the comity of Nations, where she was previously a pariah. How did his personality affect these efforts? Was his personality added value or reduced value? At the point of his death President Yar’Adua was ECOWAS chairman, previously in 2009 he attended the G20 meeting in Germany, visited President George Bush at the start of his term and other diplomatic engagements. How did his personality affect all these? On the whole how did the respective...
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...Poultry includes chickens, turkeys, ducks, geese, guinea fowl, pheasants, quail and pigeons. Chickens by are far the most popular poultry raised today. More than 50 billion chickens are reared annually as a source of food, for both their meat and their eggs (Onwukwe, 2012). However, poultry Industry, being an important sector of Nigerian livestock production is expected to play a vital role in national development through generation of revenue. About 85% and 5% of Nigeria’s poultry population estimated at 190 million were reared extensively in rural and urban areas, respectively, while 10 % were managed intensively...
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...Entrepreneurship. They are the backbone of economic development all over the world and play important role for employment, Income and societal changes, particularly in transition economies like Nigeria. This paper is concerned with the nature and the extent to which entrepreneurship in Nigeria has been developed so far, and outlines the initiative by government and also the main current and future challenges and perspectives for the development of entrepreneurship. The study revealed that such initiatives by government failed abysmally due to over bearing bureaucracies, corruption, inadequate and inefficient infrastructural facilities and maladministration. The paper concludes that entrepreneurship miracle in other country is an engine for job creation; innovation and diversity and Nigeria’s entrepreneurs have a long way to go before they can effectively drive changes in the economy and recommends that Government (policy makers) should genuine recognize the essence of entrepreneurship to economic development by providing the enabling environment for private sector led investment for economic development and also provide adequate infra-structural facilities (water, electricity, road network, communications etc.) Introduction A nation's ability to generate a steady stream of business opportunities can only come about when its people take to entrepreneurial activities. Good Entrepreneur can create a strong economy. They are an important Facet of industrial growth and development of a nation....
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...the Nokia acquisition is worth it The news that Microsoft has acquired the Nokia’s handset business was received with mixed feelings. While some people believe that the acquisition will change the dynamics of the handset industry, others are of the opinion that the Microsoft's Nokia deal is actually smart but it has a very low chance of success. For these sets of people, even though Microsoft has been playing a role in the industry with their operating system, the software giant still doesn’t have what it takes to compete favorably in an industry seemingly dominated by Samsung, Apple and other emerging brands. No doubt, this is a strong argument by these sets of people, but what must not be taken away from the deal is that the $7.2 billion purchase of Nokia's devices business is probably the no-brainer acquisition of the year. In addition to shoring up Microsoft's most important smartphone partner, the buyout places into Microsoft's hands Nokia’s important technologies besides smartphones. Following the purchase, Microsoft has said that it aims to accelerate the growth of its share and profit in mobile devices through faster innovation, increased synergies, and unified branding and marketing. Hmm! This is surreal. Microsoft is not known for aggressive branding and advertising. Just maybe, this will help solves Microsoft's ultimate problem: making consumers and businesses want Windows Phones. Nokia is virtually the only smartphone vendor committed to Microsoft’s Windows Phone...
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...48 Years Of Nigeria’s Underdevelopment: A Fruit Of Failed And Recycled Policy! * By L.Chinedu Arizona-Ogwu * Published 09/27/2008 * Nigeria Matters * Rating: L.Chinedu Arizona-Ogwu Arizona-Ogwu writes from Oyigbo, Rivers State, Nigeria. View all articles by L.Chinedu Arizona-Ogwu All over the world, there has been progress in many areas over the last 48 years -- life-saving medicines, the Internet, oil boom and , under-water exploration, airbus, the advent of mobile phone and whatsoever -- yet the same poor way of doing things as seen within October 1960 looms even today in Nigeria. Instead of coming up with better innovations and development strategies, this government makes life miserable and put across one of the worst ideas ever: confused, drawing plans, postponing and re-introducing bills yet the years were exhausting. Even if our governments are not the only ones that are bad, they have ranked low for decades on most international comparisons of corruption, state failure, red tape, lawlessness and dictatorship. Our platform "nigeria4betterrule" does not recognize such lousy but tyrant government-- this would be an insult to the many of us who risk their lives to protest this government. Instead, corrupt and mismanaged governments inside this country reflect the unhappy way in which our colonial masters artificially created most nations, often combining antagonistic ethnicities. Anyway, the results of states economics by bad states was a near-zero rise in GDP...
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...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is requested...
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...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY For decades now, Nigeria has been experiencing disappointing performance in terms of growth in gross domestic product (GDP) and the general development of her economy. As a result, there’s no improvement in the level of poverty. In the 90s, came the era of globalization which connotes external opening and increased role of markets domestically (i.e. the market economy). To the developing world, market economy is a modern way of turning the economy around. The essence of globalization is to move the economy towards external liberation, focusing on market oriented economic system, export-led strategy and stabilization of the economy. In Nigeria, it was the era of structural adjustment programme in collaboration with the IMF and World Bank. The governments in the developing world, believes that it is more desirable to globalize which simply means to open up the economy and penetrate international markets. In time past, the world economy has undergone a fundamental shift towards an integrated and coordinated global division of labour in production and trade. In the 1950s and 1960s, productions were within national boundaries. The increase of oil prices in the late 1970s and the contractionary monetary policies of the United States during 1979 and 1982 period led to the increased interest rates and consequently indebted developing countries found they unable to service their debts. Continual refinancing was the only...
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