Effect of Private Sector Investment on Economic Growth in Nigeria

Nwakoby, Clem; Bernard, Alajekwu Udoka

doi:10.12816/0033095

Cited by 14 publications

(14 citation statements)

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“…The ECM results show that about 36% of instability involving short-and long-run credit availability to the private sector is covered within a year. Nwakoby and Bernard (2016) also conducted the similar analysis in Nigeria for a different period . The cointegration findings indicate the long-run relationship between private investment and economic growth.…”

Section: Introductionmentioning

confidence: 99%

Role of Private Investment in Economic Growth in Pakistan: A Time Series Analysis (1980-2017)

Anwar¹,

Nawaz²,

Raza³

et al. 2021

IJARBSS

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The paper examines the impact of private investment on Pakistan's economic growth through a time series analysis for the period 1980-2017. Economic growth is represented with real per-capita GDP, private sector credit as an envoy of private investment (DCPS), and other variables are foreign direct investment, the discount rate, and the inflation rate. The stationarity properties of the data are investigated through Augmented Dicky Fuller test (ADF), and ARDL co-integration technique is used to estimate the equation. The findings show a significant and negative association between LDPS and real GDP: that 1% increase (or decrease) in domestic credit to private sector, on average, causes a 0.7% decrease (or increase) in real per-capita GDP in the long-run. It is also found that discount rate and GDP deflator have a negative impact on economic growth. The study concluded that private investment has negative impact on economic growth in Pakistan. It recommends to build a favourable economic environment, and incentivize FDI in Pakistan due to its positive and significant impact on GDP.

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Section: Introductionmentioning

confidence: 99%

Role of Private Investment in Economic Growth in Pakistan: A Time Series Analysis (1980-2017)

Anwar¹,

Nawaz²,

Raza³

et al. 2021

IJARBSS

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“…This condition illustrates that an increase in inflation will undoubtedly accompany economic growth. The more a country's economy grows, the better the investment climate will be (Nwakoby & Bernard, 2016).…”

Section: Short-term and Long-term Effectsmentioning

confidence: 99%

Acceleration of Islamic Bank Financing in Indonesian Agriculture Sector

Mubarok

2021

Shirkah

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Economic instability is a challenge for Islamic banks in channeling financing to various sectors including agriculture. This study aims to shed some light on the influence of economic indicators and the financing response to agriculture sector using monthly data from 2006 to 2020, including data from agriculture sector financing, interest rates, inflation, exchange rates, Islamic stock index, and composite stock index. This study employed Vector Error Correction Model (VECM) method. The results revealed that only interest rates and inflation affected Islamic bank financing in the short and long term period. Islamic bank financing in the agriculture sector reached the fastest stability when responding to exchange rate shocks. The results further showed that interest rates mostly influenced the level of diversity in Islamic bank financing in the agriculture sector. The results suggest that stakeholders need to play a crucial role in stabilizing economic turmoil to accelerate Islamic bank financing particularly in agriculture sector.

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“…The private sector growth started in Nigeria in 1980s but before then, the oil boom of 1970s gave rise to public sector-led strategy. The aim of the government at that time was to have dominant control over its own resources [8].Thereafter the dwindling revenue of government as a result of economic crisis and fall in oil price coupled with the displeasure in the performance of some of government owned corporations saw the clamor for private sector growth. As such, the structural adjustment programme (SAP) was put in place in 1986, with the objective, among others, of facilitating the development of the private sector, whose role could determine the level of economic growth of the Nigerian economy.…”

Section: Introductionmentioning

confidence: 99%

“…An important element of the programme is the conditionality on the change of economic policy, within this period Nigeria focused on fiscal adjustment and restructuring of the public sector. Therefore the programme aims at reducing government spending and increasing revenues through such measures as reduction in civil service wage bill, reduction of subsidies and tax reforms [8]. From 1986 to 2019, private investment in Nigeria has experienced an upward trend, efforts have been made to privatize the public sector, remove price distortions and liberalize the economy [10].…”

Section: Introductionmentioning

confidence: 99%

Causal Relationship between Fiscal Policy and Private Investment in Nigeria for the period 1986 -2019

Chukwu

Nnenna

Gloria

et al. 2021

ARJASS

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This study investigated the causal relationship between fiscal policy and private investment in Nigeria (1986-2019) using secondary data from Statistical bulletin of Central Bank of Nigeria. The research work used the Granger Causality techniques to test the causal relationship between the independent variables (Tax revenue, Oil revenue, Total expenditure and Public debt) on the dependent variable (Private Investment) while VAR was used to test the short run relationship. The study found that fiscal policy instruments granger causes private investment in Nigeria within the period of the study. The study therefore advocates that Government should as necessity fully liberalized or privatized NNPC and the Power sector as these critical sectors will help the growth of the private sectors and reduce unemployment in the country. Nigerian Government ought to increase its spending on infrastructure, especially capital projects in the economy in order to bridge infrastructure gap in the country. Provision of tax incentives to private sectors by the Government should be encouraged, as this will help the growth of private investment in the country. Also, restructuring of the economy by manufacturing what we need should be encouraged by government because exporting commodity (raw material) means exporting jobs.

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Effect of Private Sector Investment on Economic Growth in Nigeria

Cited by 14 publications

References 0 publications

Role of Private Investment in Economic Growth in Pakistan: A Time Series Analysis (1980-2017)

Role of Private Investment in Economic Growth in Pakistan: A Time Series Analysis (1980-2017)

Acceleration of Islamic Bank Financing in Indonesian Agriculture Sector

Causal Relationship between Fiscal Policy and Private Investment in Nigeria for the period 1986 -2019

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