Economic analysis of growth finance and liquid liabilities in Nigeria

Hassan, Bello; Osabuohien, Evans; Ayadi, Folorunso Sunday; Ejemeyovwi, Jeremiah O.; Okafor, Victoria

doi:10.21511/imfi.17(3).2020.29

Cited by 6 publications

(2 citation statements)

References 27 publications

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“…However, the nature of the balance of payment of African countries can explain this inverse relationship. Most African countries borrow huge amounts from international organisations to finance government spending, thereby incurring high-interest rate on repayments (Bello et al, 2020). Therefore, the position on external debt is a possible explanation for the negative impact of government spending shock on real GDP.…”

Section: Discussionmentioning

confidence: 99%

Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

Amu

Osabuohien

Alege

et al. 2021

Cogent Business & Management

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This study examines business cycle fluctuations in selected Sub-Saharan African (SSA) countries. The study measures the impact of selected real shocks, namely: terms of trade shocks, commodity price shocks, and government spending shocks, on macroeconomic fluctuations in SSA. The impact of the selected shocks was measured by the Bayesian Panel Vector Autoregression (BPVAR) technique. It was ascertained from the results that real (i.e. productivity) shocks drive business cycles (macroeconomic fluctuations) in SSA countries which support theoretical inclination. Furthermore, from the empirical analysis, terms of trade shocks possess the highest positive impact on business cycles. At the same time, government expenditure has the highest negative impact on business cycle among the three selected real shocks across the SSA region. Thus, the study recommends that government institutions in SSA should embark on sound fiscal policy plan along with monetary policy to stabilise the economy during recessions and expansions. The study highlights the need for diversification of the export base of SSA countries to mitigate terms of trade losses usually occasioned by unfavourable commodity price shocks.

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Section: Discussionmentioning

confidence: 99%

Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

Amu

Osabuohien

Alege

et al. 2021

Cogent Business & Management

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“…Economic growth and per capita income are two closely related issues that account for the level of stock market development in a country. A high rate of economic growth brings economic prosperity, which encourages an increase in the number of individuals willing to invest in stocks, just like a rise in per capita income in a country, which increases people's ability to save or invest (Bello et al, 2020). Innovations in monetary and fiscal policy, exchange rate, income distribution, inflation, trade balances, and even crude oil prices have consequences for stock market development.…”

Section: Introductionmentioning

confidence: 99%

Enabling stock market development in Africa: A review of the macroeconomic drivers

Uzum

Ikpefan

Omankhanlen

et al. 2021

Investment Management and Financial Innovations

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Africa has underdeveloped stock markets that have failed to meet the continent’s capital needs, such as rapid economic growth. This research analyzes the key drivers of stock market development in Africa from a macroeconomic perspective. The study examines several macroeconomic variables, including credit to the private sector, foreign direct investment, external reserves, money supply, external trade, per capita GDP, inflation, and lending rate to explain stock market development in Africa. The study builds a panel data consisting of eight African countries from 1994 to 2018 and applies the pooled mean group estimation technique. The analysis shows that in the long run, credit to the private sector, external reserves, and inflation are the most important factors that influence stock market development, while in the short run, income and trade openness are significant in explaining stock market development in Africa. The study recommends that policies to develop African stock markets should center on developing the private sector through access to credit, increased per capita income, and effective foreign reserve management to boost local and foreign investors’ confidence.

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Infrastructure Spending and the Regional Financial Development: Evidence from the Eastern African Belt and Road Initiative Countries

Sakouba

Chen

2023

Journal of Asian and African Studies

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This paper examines the causal relationship between infrastructure spending and regional financial development in Eastern Africa, including Ethiopia, Kenya, Tanzania, Rwanda and Uganda, for 2007–2017 within a trivariate vector autoregressive framework. We use the Global Financial Development Database from the World Bank. We extend the conventionally accepted ratio of financial development by including the Belt and Road Initiative (BRI) spending as an additional variable. The empirical strategy involves applying the Granger causality tests using the cointegration and vector error correction methodology. We find evidence of a two-way Granger causality: (1) between the BRI spending and regional financial development and (2) between the BRI spending and regional growth. These findings suggest that an increase in infrastructure spending, particularly in transport, telecommunications and energy, positively affects regional financial development in Eastern Africa and increases the unbanked population’s inclusion in the region.

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Economic analysis of growth finance and liquid liabilities in Nigeria

Cited by 6 publications

References 27 publications

Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

Enabling stock market development in Africa: A review of the macroeconomic drivers

Infrastructure Spending and the Regional Financial Development: Evidence from the Eastern African Belt and Road Initiative Countries

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