Determinants of economic growth in Nigeria

This paper investigates the role of Frazer Economic Freedom Index on FDI-growth relationship over the period spanning 1980 through 2010 using annual time series data. A Multivariate Regression approach was employed to estimate augmented growth models. Quite intriguingly, the impact of disaggregated economic freedom over aggregated composite index was found profoundly revealing. Emanated results show that the same set of variables like labour, life expectancy, degree of openness and economic freedom are factors affecting the level of economic growth in both but at different levels of significance. However, the estimates of disaggregated components of economic freedom data show that the size of government (negative effects) and freedom to trade internationally (positive effects) appears as significant out of five variables making the composite (aggregated) index. The following are therefore suggested for policy applications: curbing unfettered liberalization in the degree of openness, improving and strengthening of the components of economic freedom index, specifically, through reduction in excessive government intervention and that more budgetary allocations should be channeled towards health delivery schemes and education promoting activities since the likelihood of elongating life expectancy is in tandem with such exercises

Financial Innovation and Sustainable Development in Selected Countries in West Africa

Financial innovation has given a new trend to modern financial system and its importance has been widely recognized. This study investigated the effect of financial innovation augmented with bank competition on sustainable development in eight West African countries. Data were sourced from World Bank development indicators from years 2000-2013. We used two proxies of competitions, two proxies of financial innovations and regressed them on a growth indicator as well as development indicator with other control variables. Using panel data estimations, our results confirmed that an increase in banking efficiency driven by competition and financial innovation would improve economic growth and development. While the two proxies of competition were significant, the financial innovations were not significant; one displayed a negative, while the other exhibited a positive relationship with development. These results revealed the differential effects of different financial innovations adopted in the financial system. That is, the growth effect of financial innovation is sensitive to the choice of proxy. A reduction in demand for money caused by financial innovations could deter economic growth and development. This is because individuals would move away from more liquid assets to less liquid assets. On the other hand, financial innovations could potentially lead to an increase in money demand if payment systems improve and individual’s demand for more liquid assets is channeled to productive sectors. We therefore concluded that policies which would drive competition and efficiency in the banking industry as well as financial innovation should be introduced to ensure effective functioning of the financial system.Innowacje finansowe są nieodzownym elementem współczesnego systemu finansowego. Badania zaprezentowane w artykule dotyczą znaczenia innowacji finansowych dla konkurencji bankowej oraz ich wpływu na zrównoważony rozwój w ośmiu krajach Afryki Zachodniej i zostały oparte na wskaźnikach rozwoju opracowanych przez Bank Światowy z lat 2000-2013. W badaniach jako zmienne objaśniane wykorzystano wskaźnik wzrostu jak i rozwoju, a wśród zmiennych objaśniających znalazły się mię- dzy innymi dwie zmienne opisujące konkurencyjność, dwie zmiennie określające innowacje finansowe. Na podstawie analizy danych panelowych stwierdzono, że wzrost efektywności w systemie bankowym wywołany przez konkurencję i innowacje finansowe przyczynia się do wzrostu gospodarczego i rozwoju. W modelach dwie zmienne objaśniające w zakresie konkurencyjności okazały się statystycznie istotne, natomiast zmienne w zakresie innowacji finansowych nie były istotne – jedna wykazywała negatywny, podczas gdy druga pozytywny wpływ na wskaźniki rozwoju. Badania ujawniły zróżnicowane efekty innowacji finansowych zaadaptowanych w systemach finansowych, co oznacza, że efekt wzrostu wywołany przez innowacje finansowe jest wraż- liwy na dobór zmiennej objaśniającej. Zmniejszenie popytu na pieniądz wywołane innowacjami finansowymi może spowolnić wzrost gospodarczy i rozwój. Wynika to z faktu, że osoby fizyczne mogą konwertować swoje aktywa z bardziej płynnych na mniej płynne. Z drugiej strony innowacje finansowe mogą potencjalnie wpłynąć na wzrost popytu na pieniądz jeżeli system płatności zostanie usprawniony i indywidualny popyt na bardziej płynne aktywa zostanie przeniesiony na sektor produkcyjny. W związku z tym stwierdza się, że w celu zapewnienia funkcjonowania efektywnego systemu finansowego polityka powinna pobudzać konkurencję i efektywność w systemie bankowym jak i innowacje finansowe

Fiscal federalism in Nigeria: A cluster analysis of revenue allocation to states and local government areas, 1999 - 2008

Existing literature on revenue allocation in Nigeria shows more concern for merits and demerits of sharing principles and /or formulae. Several alternatives have been proposed and will continue to be developed to address the unending agitations from beneficiaries. Contrary however, this paper analyzes two items of revenue (statutory and VAT) shared among the states including FCT and all the Local Government Areas (LGAs) between May 1999 and December 2008. The net statutory allocation after deductions was also analyzed. Using Cluster analysis to evaluate revenue allocation in Nigeria, States and LGAs exhibiting similarity in revenue received were grouped and their common features highlighted. The result of this exercise may be a pointer to resolving the issue of viability when combined with other statistics

Global Value Chain and Total Factor Productivity in Africa

This paper examines the impact of global value chain (GVC) participation on total factor productivity in African economies. The analysis is based on panel corrected standard errors, IV-estimation technique and the novel Method of Moment (MM)-panel quantile regression. The results reveal that there is positive and significant relationship between global value chain and total factor productivity in African economies. Specifically, we discover that the impact of GVC participation on total factor productivity is positive and significant. This result is consistent across all the quartiles after employing MM-panel quartile regression. The coefficients of global value chains improve as we approach a higher quantile. The study concludes that GVC participation allows access to a larger global market which local firms may explore to gain from scale economies, and to learn using modern technology and innovations. It facilitates connections to cheaper and quality inputs for domestic production, while efficiency is guaranteed

Fractal Characterization of Dynamic Systems Sectional Images

Image characterizations play vital roles in several disciplines of human endeavour and engineering education applications in particular. It can provide pre-failure warning for engineering systems; predict complex diffusion or seeping of radioactive substances and early detection of defective human body tissues among others. It is therefore the object of this study to simulate three selected known surfaces that are of engineering interest, pass section plane through these surfaces arbitrarily and use fractal disk dimension to characterize the resulting image on the sectioned plane. Three carefully selected surfaces based on their engineering education and application worth’s were simulated with respective relevant set of equations. In each case studied, the simulation was driven either by random number generation with seed value of 9876 coupled with relevant set of equations or by numerical integration based on Runge-Kutta fourth order algorithms or combination of both. However, all simulations were coded in FORTRAN 90 Language. Section plane was passed through each simulated surface arbitrarily and in two hundred (200) different times for the purpose of obtaining reliable results only. Image obtained at less or equal to four percent (4%) tolerance level by sectioning was characterised by optimum disks counting algorithms implemented over ten (10) scales of observations and five (5) different iteration each. The estimated disk dimension was obtained by implementing the least square regression procedures on optimum disks counted at corresponding scales of observations. A visual and fractal disk dimension characterization of selected images on sectioned plane form cases studied validated algorithms coded in FORTRAN 90 computer language. The surface of Case-III is the most rough with disk dimension of 2.032 and 1.6% relative error above the dimension of smooth surface (2.0). This is followed by Case-II with disk dimension of 1.905 and 4.8% relative error below the dimension of smooth surface. Case-I has the least disk dimension of 1.897 and with 5.2% relative error below smooth surface. Case-I and case-II that suffered negative relative error originated from set of linear systems while Case-III that suffered positive relative error originated from set of non linear systems. Non linearity manifested in graphical display of disk distribution by frequency in Case-III by multiple peaks and substantial shift above disk dimension of 1.0.This study has demonstrated the high potentiality of fractal disk dimension as characterising tool for images. The coded algorithms can serve well as instruction material for students of linear and non linear dynamic systems. Keywords: Fractal, Sectional Images, Fractal Disk Dimension, Dynamic Systems and Algorithm

Discrete Vortex Modelling of Turbulent Flow in Two Dimensions

There has been growing need to characterize the turbulent flow through asimplified model. This paper reports the characterization of turbulent flow in twodimensions using discrete vortex modelling. The free surface flow in channel isconsidered as a case study. Appropriate flow charts and FORTRAN source codes weredeveloped to solve the main governing equations of fluid flow. The Reynolds numberwhich is the control parameter from 100,000 (experimental transition point) at an intervalof 10,000 to 1,000,000 is used and the result is displayed using Microsoft Excel Graph.After the four stages of transition process due to Helmholtz instability, the turbulentregion is reached, which is characterized by irregularity, low momentum diffusion, highmomentum convection, and rapid variation of velocity. The result has shown thatturbulent flow can be characterized with ease by using discrete vortex modelling

FOREIGN BANKS’ PRESENCE, BANKING SECTOR OPENNESS AND NEW FIRM CREATION IN SELECTED AFRICAN COUNTRIES

This paper analyzes the dynamic impact of foreign banks’ presence and openness of banking sector on new firm creation in a panel of African countries. The analysis is based on Panel corrected standard error estimate (PCSE) and system Generalised Method of Moment (SGMM). Using data of sixteen countries in Africa between 2006 and 2017, the results reveal that foreign banks’ presence and banking sector openness have significant positive impacts on new firm creation. The study also examines the causality between the variables via Toda and Yamamoto approach. The results confirm a bidirectional causality between banking sector openness and new business creation. This means that there is a two-way flow between the variables. Banking sector openness drives entrepreneurial development and entrepreneurial activities also drive openness of the banking sector. This implies that foreign banking firms through their access to advanced technologies, increase the efficiency in the domestic banking sector of the economy. They grant loanable funds to domestic entrepreneurs for setting up new firms. The findings suggest that the presence of multinational banks is a blessing to African economies. Keywords: Foreign Banks, Liberalization, Entrepreneurial Start- up. &nbsp

Does Governance Impact on the Foreign Direct Investment- Growth Nexus in Sub-Saharan Africa?

The central question this paper sought to tackle was “does the quality of institutions matter for the relationship between Foreign Direct Investment (FDI) and economic growth?” Using macroeconomic data on 27 Sub Saharan African (SSA) economies and six distinct measures of governance the findings showed that control of corruption, political stability and government effectiveness matter for the influence of FDI on economic growth in SSA. This key fi nding was found to be robust even in models where these three governance indicators were interacted with FDI. Furthermore, the results from threshold-type sample splitting showed that in the sample containing countries with a higher level of governance, the positive impact of FDI on growth has larger magnitude vis-à-vis the comparator group with poorer governance indicators. This significant threshold effects remained robust across specifications

Mapping Crime Hotspots in Akure, Nigeria: A GIS Perspective

African countries in recent times have witnessed an unprecedented level of insecurity. This has made national security threat to be a major issue for the government and has prompted huge allocation of the national budget to security. The objective of this paper is to mark out crime hotspot areas in the central area of Akure metropolis; and examine the rate at which crimes are committed, the surveillance method used and its effectiveness. The research made use of Google Earth imagery and Geographical Information System (GIS) technology to delineate crime hotspots in Akure. A 100m buffer was created around the identified crime hotspots to select houses that are susceptible to the impacts of crime activities in the study area. A structured questionnaire was also used to elicit information on crime, surveillance method, and effect of crime on the people and level of occurrence in the city among others. Findings identified six major crimes in eight hotspot areas; noise, loss of property and threat to life were some of the effects of hotspots on residents. The paper recommends construction/repair of roads in the core residential areas for effective surveillance of hotspots. The use of satellite images to combat crime in the city is also canvassed

Modelling urban growth from medium resolution Landsat imageries of Akure, Nigeria

The city of Akure has experienced rapid growth in the past 2 to 3 decades which has led to the expansion of the core urban areas of the city into adjoining rural lands. The paper analyses the urban growth of Akure using medium resolution Landsat imageries. Landsat (MSS), Landsat Thematic Mapping(TM) and Landsat Enhanced Thematic Mapper (ETM+) images for 1972, 1986 and 2002 respectively were used in a post-classification comparison analysis to map the spatial dynamic of land cover changes and identify the urbanization process in Akure. The land cover statistical results revealed a rapid growth in the built-up area of Akure from 997.2 hectares in 1972 to about 3852.70 hectares in 2002 due to increase in population of Akure within this period. Results of the prediction showed that the built-up area of the city has increased in size from 977.2 hectares in 1972 to 5863.66 hectares in 2022 corresponding to 500% at the rate of 13.1% per annum. Implications of growth include loss of open space, pressure on limited infrastructure, overcrowding, traffic congestion and poor standard of living. The study recommends regular monitoring of urban area, development of small towns around the city area to avoid overcrowding, training of planners and administrators to acquire more knowledge in the use of GIS and remote sensing to enhance efficiency