This study examined fiscal policy and macroeconomic policy dynamics in Nigeria. The study specifically assessed whether there is a long run and short run causal relationship running from fiscal policy instruments such as government revenue, government expenditure and debt to macroeconomic variables such as interest rate and GDP in Nigeria. The data for the study were source from the CBN statistical bulletin for the period 1980 to 2016. The exploratory design was combined with the ex-post facto research design; the data collection method was desk survey. The study used the Vector Error Correction Mechanism (VECM) for data analysis. Findings from the analyses showed that there is no long run and short run causality running from fiscal policy instruments such as government revenue, government expenditure and debt to interest rate in Nigeria. The study also showed that there is no long run and short run causality running from fiscal policy instruments such as government revenue, government expenditure and debt to GDP in Nigeria. The study on the basis of these findings recommends that Fiscal policy should be tailored towards sustaining economic growth and development; in view of this government avoid further borrowings as this may increase the debt servicing burden and result in a negativity effect on growth in the long run and lastly that fiscal policy should be used to complement monetary policy effects as if used alone may not achieve the desired target for interest rate in Nigeria.
This study examined the relationship between financial market performance and foreign portfolio investment in Nigeria. The study specifically assessed whether there is a long run and short run causal relationship running from financial market performance to foreign portfolio investment in Nigeria. Financial market performance was measured using stock market performance, stock market liquidity and total new issues. The data for the study were source from the CBN statistical bulletin for the period 1984 to 2015. The exploratory design was combined with the ex-post facto research design; the data collection method was desk survey. The study used the Autoregressive Distributive Lag (ARDL) technique for data analysis. Findings from the analyses showed that financial market performance has no long run causal relationship with foreign portfolio investment in Nigeria. Also, stock market performance and stock market liquidity have no short run causal relationship with foreign portfolio investment in Nigeria. Lastly, total new issue has a short run causal relationship with foreign portfolio investment in Nigeria. The study on the basis of these findings recommends that stock market regulators should through conscious enlightenment campaigns encourage more domestic participation in the market to enhance the market performance, deepening and growth as this will strengthen its long run causality with FPI. Lastly, stock market regulators should through conscious risk reduction policies formulation and implementation reduce the riskiness of investing in the stock market to increase transactions and liquidity in the stock market, boost the rate of turnover to investors as this will attract foreign portfolio investors to the Nigerian financial market.
The*objective*of*this*study*was*to*investigate*the*role*of*deposit*money*banks* credit* on* the* growth* of* the* agricultural* sector* in* Nigeria* between* the* periods* 1988* to* 2011.* An* exVpost* facto* research* design* was* used* for* the* study.* Three* research* objectives* were* formulated.* Data* were* sourced* principally* from* the* secondary*sources*and*was*collected*from*the*CBN*Statistical*Bulletin.*The*Data* were* analyzed* using* the* ordinary* least* square* multiple* Regression* Statistical* Technique.* Result* from* the* analysis* revealed* that* both* deposit* money* banks* loans* and* the* agricultural* credit* guarantee* scheme* fund* had* a* positive* relationship* with* the* output* of* the* agricultural* sector.* It* was* however* discovered* that* agricultural* credit* guarantee* scheme* fund's* relationship* was* insignificant.*It*was*finally*revealed*that*deposit*money*bank*lending*rate*had*a* negative* and* insignificant* relationship* with* the* output* of* the* agricultural* sector* in* Nigeria.* Based* on* these* findings,* it* was* recommended* that* the* loans* and* finances* to* the* agricultural* sector* should* be* increased* while* the* lending* rate* should* be* reduced.* Also,* the* conditions* to* be* fulfilled* by* farmers* before* accessing*the*agricultural*credit*guarantee*scheme*fund*should*be*reviewed.* Keywords:*Deposit*money*bank;*credit;*loan*and*total*agricultural*output*
This study examined the effects of deposit money banks financing on real sector output in Nigeria. The study specifically assessed the effect of private sector credit, interest rate spread, deposit mobilization and banks' holding of treasury bills on trade and agricultural sectors outputs in Nigeria. The data for the study were source from the CBN statistical bulletin for the period 1984 to 2015. The exploratory design was combined with the ex-post facto research design; the data collection method was desk survey. The study used the Vector Error Correction Mechanism (VECM) for data analysis. Findings showed that jointly, deposit money banks financing have a long term significant effect on the trade sector but does not have any long run effect on the agricultural sector in Nigeria. Also, it was revealed that there is no short run causality running from PSC, DMB, DTB and INTS to agricultural sector output; however only INTS has short run causality with trade sector output. Lastly, interest rate spread has an inverse effect on the trade sector output but a positive effect on the agricultural sector output in Nigeria. The study therefore recommends that Deposit money banks should in addition to granting loans to farmers; monitor the use of such funds to avoid loan diversion and consequently poor agricultural sector performance. Also, Banks should employ research staff to conduct researches on modern approaches to effective real sector production and investments and should use the research findings to train her loan customers on the best production techniques as this will go a long way to enhance the real sector output. Lastly, the spread between lending and deposit rates should be narrowed to trigger savings and enhance banks' loan supply and real sector loan demand which consequently will boost productivity in the real sector.
This study examined deposit insurance schemes’ activities and its effect on deposit mobilization of the International Association of Deposit Insurers (IADI) member countries. The study dwelled on the banking sectors post-core principles of the member countries. The study assessed the effect of deposit insurance fund, deposit insurance cover, deposit insurance premium and deposit fully covered on the total deposit of the banking sectors of 21 member countries of IADI spanning the period 2014 to 2018. Data were sourced from the annual reports of the selected countries Deposit Insurance Agencies. The study adopted the ex-post facto research design. The estimating technique was panel Vector Error Correction Model (VECM). Findings from the analyses showed that deposit insurance scheme activities of member countries did not significantly affect IADI’s member countries banking sectors deposit mobilization after the implementation of the core principle. IADI, as a policy-making body must, therefore, review and localize its core principles and policies in line with member countries’ uniqueness and financial realities through investment in research in member countries to isolate unique factors peculiar to member countries and streamline policies to capture member countries’ financial and economic conditions. IADI should monitor the compliance level of member countries to ensure strict implementation of its policy and principles by member countries.
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