A Vector Error Correction Modeling of Security Spending and Economic Growth in Nigeria

Oriavwote, Victor E.; Eshenake, Samuel J.

doi:10.5430/afr.v2n2p59

Cited by 9 publications

(7 citation statements)

References 21 publications

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“…The results revealed no direction of causality between banking sector development and Nigerian real estate growth. Oriavwote and Eshenake (2014) examined the impact of financial sector development on economic growth using GDP to measure economic growth and domestic credit to the private sector with multiple regression technique. The results indicated that financial development had no impact on economic growth based on the statistical insignificance of credit to the private sector.…”

Section: Literature Reviewmentioning

confidence: 99%

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Ngong

Onyejiaku

Fonchamnyo

et al. 2022

AJEB

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Purpose This paper investigates the impact of bank credit on agricultural productivity in the Central African Economic and Monetary Community (CEMAC) from 1990 to 2019. Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting. Design/methodology/approach Agricultural value added (AGRVA) to the gross domestic product (GDP) proxies agricultural productivity while domestic credit to the private sector by banks (DCPSB), broad money supply, land, inflation (INF), physical capital (PHKAP) and labour supply are explanatory variables. The autoregressive distributed lag technique is utilized. Findings The co-integration test results show a long-run co-integration among the variables. The findings disclose that DCPSB, land and PHKAP impact positively on the AGRVA. Broad money supply, INF and labour impact negatively on the AGRVA to the GDP. Research limitations/implications The results suggest that the CEMAC governments should encourage effective ways to increase bank credit flow to private enterprises in the agricultural sector through efficient bank's intermediation. Practical implications The governments should create more agricultural banks and improve the operation of existing ones to ensure direct credit to agricultural activities. The Bank of Central African Economic and Monetary Community should apply aggressive policy which eliminates all the bottlenecks undermining credit flow to the private sector in mutualism with agricultural productivity. Social implications The commercial banks should give more credit to private sector to mutually benefit the agricultural sector and the banking sector. The governments of the CEMAC economies should expand funding into the capital market which considerably boosts agricultural productivity. Originality/value Studies’ results on the impact of bank credit on agricultural productivity are not conclusive. The studies demonstrate diverse outcomes which are debatable. The results are conflicting; some reveal positive impacts, some show negative impacts and others indicate U-shape behaviour. Hence, research is required to fill the lacuna.

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Section: Literature Reviewmentioning

confidence: 99%

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Ngong

Onyejiaku

Fonchamnyo

et al. 2022

AJEB

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“…Empirical findings on the relationship between expenditure on internal security and economic growth have been uneven; Oriavwote and Eshenake (2013) employed an error correction model to examine the impact of security expenditure on economic growth in Nigeria spanning 1980 and 2010. The result revealed that government expenditure on internal security has a positive and significant relationship with economic growth.…”

Section: Empirical Reviewmentioning

confidence: 99%

“…However, this study disaggregated spending on internal security into capital and recurrent spending. Then replaced expenditure on defence with other relevant independent variables (i.e., interest rate and exchange rate) not captured in the study of Oriavwote and Eshenake (2013) to actually showcase the influence of internal security expenditure among other vibrant variables on the economic growth of Nigeria. Strictly speaking, the current model states that Nigeria's economic growth depends on recurrent expenditure on internal security, interest rate, and exchange rate.…”

Section: Framework Specificationmentioning

confidence: 99%

Recurrent Expenditure on Internal Security and Economic Growth in Nigeria

Chioma Chidinma,

Edet Etim

2024

EJSSS

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It is the responsibility of the government to ensure the internal safety of those living in the country. This is because it (the government) has the resources needed to deploy and ensure that the country is safe. To achieve internal safety, the federal government of Nigeria has continued to increase expenditure on internal security with a view of securing all those living in the country for investment and innovation. Thus, this paper investigated the relationship between government recurrent expenditure on internal security and economic growth in Nigeria from 1980 to 2022. The data for the study were sourced from Central Bank of Nigeria statistical bulletin. The Autoregressive Distributed Lag (ARDL) model was employed as the main analytical tool. The results of the analyses revealed the presence of a long-run association among the variables. The results also showed that in the long run, government recurrent expenditure on internal security has a positive and insignificant relationship with economic growth in Nigeria. At the same time, exchange rate has a positive and significant relationship with economic growth in Nigeria. Also, interest rate has a negative and significant relationship with economic growth in Nigeria. In the short run, government recurrent expenditure on internal security has a negative and significant relationship with economic growth in Nigeria. The exchange rate and interest rate have a positive and significant relationship with economic growth in Nigeria. The study concluded that the relationship between government recurrent expenditure on internal security and economic growth in Nigeria varies, as it could be positive (in the long run) or negative (in the short run). Therefore, the study recommended that recurrent expenditure on internal security which includes pay to officers, salaries to specialists within internal security forces or connected to internal security organizations, pensions of internal security personnel; and social services for personnel and their families; maintenance and operations; internal security research and development, medical services, etc. should be increased because in the long run it will provide a spin-off effect on the national economy and increase economic growth. Article visualizations:<img src="/-counters-/soc/0014/a.php" alt="Hit counter" />

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“…The authors of these studies used different econometric methodologies, such as ARDL, descriptive methods and OLS, among others. The results of these studies were mixed, with some indicating a strong correlation between financial inclusion and economic growth (Nwanne, 2015;Oriavwote and Eshenake, 2014;Ammar and Azhar, 2015;Bongomin et al, 2018;Fowowe and Folarin, 2019;Grohmann et al, 2018;Ozili, 2018;Swamy, 2014;Adegbite and Machethe, 2020;Cicchiello et al, 2021), whereas others found little or no correlation (Olofin and Uduma, 2006).…”

Section: Impact Of Financial Inclusion On Economic Growthmentioning

confidence: 99%

Financial inclusion and the financial and economic development: review of the literature, evidence gaps and the road ahead

Naili,

Jabbouri,

Helmi

2023

QMR

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Purpose The purpose of this study is to provide a comprehensive review of the literature on financial inclusion, with a focus on its relationship to financial and economic development. Design/methodology/approach This paper begins by surveying the field of financial inclusion research over the past 15 years, highlighting the evolution of how financial inclusion has been studied in practice. By reviewing 107 studies published between 2008 and 2023 in 63 peer-reviewed journals, the study emphasizes the importance of recent research in this field. Findings The analysis reveals key findings on the positive impact of financial inclusion on economic growth, poverty reduction, financial stability and CO2 emissions, among other factors. Despite the extensive empirical and theoretical work accomplished in the field, the study argues that there is still a need for further research on financial inclusion, including exploring new regions and financial and economic development indicators such as social capital, entrepreneurship and political stability. Practical implications This research aspires to map the emerging discourse on this topic, identify major gaps, and provide a productive line to guide future research. This will contribute to the ongoing debate led by the World Bank on financial inclusion as an effective measure to fight poverty. This study attempts to proffer ideas to encourage collaborative research and deepen our understanding on the role of financial inclusion. Originality/value This study offers a comprehensive overview of recent research on financial inclusion and highlights the need for further research in this field. This study also proposes a promising future research agenda to guide future advancements in the area of financial inclusion.

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A Vector Error Correction Modeling of Security Spending and Economic Growth in Nigeria

Cited by 9 publications

References 21 publications

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Has bank credit really impacted agricultural productivity in the Central African Economic and Monetary Community?

Recurrent Expenditure on Internal Security and Economic Growth in Nigeria

Financial inclusion and the financial and economic development: review of the literature, evidence gaps and the road ahead

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