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Government Expenditure, Savings, FDI and Economic Growth: An Impact Analysis
Felicia Abada,
Charles Manasseh
Issue:
Volume 9, Issue 4, December 2020
Pages:
92-99
Received:
28 June 2020
Accepted:
8 July 2020
Published:
31 December 2020
Abstract: This study investigates the impact of government expenditure, savings, FDI on economic growth in Nigeria for 1995 to 2018. The data for the study was sourced from World Bank’s World Development Indicator, while OLS estimating technique was employed for the analysis. Using OLS estimator, the empirical evidence from the findings show that government expenditure, savings, FDI significantly impacted economic growth. Therefore, government expenditure, savings, foreign direct investments are key determinants of economic growth in Nigeria. Based on the findings, we suggest that the Nigerian government should reduce the personal income tax so as to promote the disposal income and invariables savings. Also, effort should be made to promote stable and less volatile macroeconomic environment for the attraction of foreign direct investment inflow into Nigeria. This in turn could boost employment and increase in income and the individual savings. Further, we found government expenditure to negatively relate to economic growth. Hence, government spending in itself is not bad but should be utililize efficiently to help drive economic growth. Hence, we suggest that government spending should be reduced since it does not contribute immensely to the growth of the economy.
Abstract: This study investigates the impact of government expenditure, savings, FDI on economic growth in Nigeria for 1995 to 2018. The data for the study was sourced from World Bank’s World Development Indicator, while OLS estimating technique was employed for the analysis. Using OLS estimator, the empirical evidence from the findings show that government ...
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Government Domestic Borrowing and Private Sector Credit Crowding out: Empirical Evidence from Nigeria
Issue:
Volume 9, Issue 4, December 2020
Pages:
100-106
Received:
13 July 2020
Accepted:
21 August 2020
Published:
31 December 2020
Abstract: The impact of government domestic borrowing on the private sector credit has been a subject of great interest to researchers in finance. This study looked at the impact of government domestic borrowing on private sector credit in Nigeria. Government domestic borrowing can affect the private sector by crowding out private sector credit directly or indirectly through rising interest rates. The study employed an ex-post research methodology. Secondary data was collected from the Debt Management Office Nigeria and the Central Bank of Nigeria. The study covered a 10-year period from 2009 to 2018. An OLS multiple regression model was used. Government domestic borrowing was proxied by federal government bond issuances as the dependent variable. The deposit money banks’ prime lending rates, private sector lending by the banks, the bank’s investment in treasury bills and government bonds were the independent variables. The data was tested for heteroscedasticity, stationarity, normality, multicollinearity and serial correlation to examine the robustness of the model. The results showed that prime lending rate has a positive effect on government bond issuance although not significant. The findings also indicated that there is a negative relationship between government domestic bond issuance and the banks credit to private sector. However, this relationship is not statistically significant implying that government borrowing may not have crowded-out private sector. The relationship between government bond issuances and bank investment in treasury bills and government bond is negative although not significant. The findings of this study suggest that government domestic borrowing in Nigeria may have resulted in the reduction of private credit and this works through the credit channel and the interest rate channel.
Abstract: The impact of government domestic borrowing on the private sector credit has been a subject of great interest to researchers in finance. This study looked at the impact of government domestic borrowing on private sector credit in Nigeria. Government domestic borrowing can affect the private sector by crowding out private sector credit directly or i...
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Review on Economic Efficiency of Smallholders Farmers in the Production of Sesame: The Case of Ethiopia
Issue:
Volume 9, Issue 4, December 2020
Pages:
107-114
Received:
16 September 2020
Accepted:
28 September 2020
Published:
31 December 2020
Abstract: The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and unpublished sources were used. Also, the study reviewed various functional forms that were fitted to estimate Technical, Allocative and Economic efficiencies levels and model that were fitted to estimate factor affecting efficiency of smallholder farmers. The review results indicate Cob-Douglas function and Translog functional form are alternative methods for evaluating efficiencies and were used for purposes of comparison; OLS is mainly used if the inefficiency scores are not truncated or censored for a specific value; Tobit regression approach is preferred over the OLS regression in the case of censored data. The review results indicate as there is a room to increase the efficiency of sesame producers. Variables such as non-farm income and credit access, experience in sesame production, distance of sesame farm from residence, education level and extension contact had major significant impact on Technical, Allocative and Economic efficiency. In order to improve efficiency of smallholder farmers in sesame production in Ethiopia, give consideration to the above mentioned socio economic and institutional factors is needed. Focusing on efficient use of existing resources and addressing the socio-economic and institutional factors by using existing technology and given input levels are crucial and relevant policy issues are recommended. Strengthening the existing livestock production system, credit access, agricultural extension system and invest in the provision of basic education to smallholder farmers are advisable.
Abstract: The objective of this study is to review economic efficiency of smallholder farmers in sesame production in Ethiopia. Specifically, the review examines levels of Technical, Allocative and Economic efficiencies of sesame producer; and to review factors affecting efficiency of smallholder farmers in the study area. For this study both published and u...
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Human Resource Management: Service Sector vs Manufacturing Sector
Issue:
Volume 9, Issue 4, December 2020
Pages:
115-122
Received:
11 August 2020
Accepted:
27 August 2020
Published:
31 December 2020
Abstract: India is on the threshold of major reforms and is poised to become the third largest economy of the world by 2030. India is a large country and has vast potential to become a strong and modern nation with its huge natural resources and sizeable population. Since independence, the nation is able to create facilities for manufacturing products and services. For the development of the nation several sectors need to be developed. For achieving the growth in services and manufacturing sector, one factor which can help a lot is Human Resource management and their continuous development. The service sector forms a backbone of social and economic development of a country. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. Where the manufacturing sector has emerged as one of the high growth sectors in India. A closer look at the trends in development in these sectors is managing people in ever changing manufacturing and services sectors. The success of an organization largely depends on its Human Resource. Human Resource Management plays a vital role in achieving the organizational objectives. Quality human resources have become an important base with which to respond to the emerging environment in services and manufacturing sector. The knowledge workforce in particular has a vital role to play in the emergence of this sector. The present paper is an humble attempt to look into the need and how the human resource is management in service and manufacturing sector.
Abstract: India is on the threshold of major reforms and is poised to become the third largest economy of the world by 2030. India is a large country and has vast potential to become a strong and modern nation with its huge natural resources and sizeable population. Since independence, the nation is able to create facilities for manufacturing products and se...
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