Finance, oil rent and premature deindustrialisation in Nigeria

Itaman, Richard E.; Awopegba, Oluwafemi Emmanuel

doi:10.1016/j.strueco.2021.06.006

Cited by 5 publications

(10 citation statements)

References 29 publications

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“…Building on this body of literature, Xu and Tan [ 38 ] propose that financial development has the potential to shape the composition of industrial structure in resource-dependent countries by redirecting financial resources from surplus natural-resource-related sectors towards productive investments in the tertiary industry. Itaman and Awopegba [ 16 ] argue that financial development can catalyze the expansion, upgrading, and formation of entirely new tertiary sectors in resource-rich nations. Therefore, the following hypothesis is formulated to guide this study.…”

Section: Theoretical Considerations and Literature Reviewmentioning

confidence: 99%

“…In another study focusing on manufacturing output in Nigeria from 1981 to 2018, Itaman and Awopegba [ 16 ] introduced a non-linear equation that extended to elucidate the impact of trends in the domestic financial system on industrial progress. The results indicated an inverted U-shaped association between the share of manufacturing in aggregate output and per capita GDP.…”

Section: Theoretical Considerations and Literature Reviewmentioning

confidence: 99%

“…One such gap pertains to reliance on a three-sector classification in existing studies, combining the output contribution of all secondary industrial production. For example, studies like Asiamah et al [ 2 ] have adopted this approach, while others have primarily focused on analyzing the output value of the manufacturing sector, as seen in Itaman and Awopegba [ 16 ]. However, these previous empirical models have overlooked the independent effects of non-manufacturing industrial sectors such as mining, construction, and utilities when tracing the progress of industrial structure transformation in SSA.…”

Section: Introductionmentioning

confidence: 99%

“…Another knowledge gap in the literature pertains to the limited empirical research on the structural-transformational effects of financial development, with less emphasis on SSA specifically. To the best of our knowledge, only Itaman and Awopegba [ 16 ] have examined the specific case of an SSA economy, particularly Nigeria. Additionally, the existing empirical studies in this area have predominantly focused on the depth of credit supply from the banking system as the sole indicator of financial development.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Natural resources, financial development and structural transformation in Sub-Saharan Africa

Nwani,

Okezie,

Nwali

et al. 2023

Heliyon

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Section: Theoretical Considerations and Literature Reviewmentioning

confidence: 99%

Section: Theoretical Considerations and Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Natural resources, financial development and structural transformation in Sub-Saharan Africa

Nwani,

Okezie,

Nwali

et al. 2023

Heliyon

View full text Add to dashboard Cite

“…This cost is further reinforced by the collusive behaviour of the few banks that dominate the banking industry. This is further perpetuated by banks' drive for short-term profits, which in part, shortens the liquidity cycle in the banking system, thereby narrowing the scope for long-term lending and real investments (Tule, 2014;Itaman & Awopegba, 2021).…”

Section: Effect Of Monetary Policy Rate On Market Interest Rates In N...mentioning

confidence: 99%

Effect of Monetary Policy Rate on Market Interest Rates in Nigeria: A Threshold and NARDL Approach

Awopegba¹,

Afolabi²,

Adeoye³

et al. 2022

CBN-JAS

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This study examines the effect of monetary policy rate (MPR) on market interest rates in Nigeria. For parsimony, we develop two indexes called the short-term interest rate (SINT) and Lending interest rate (LINT) to represent deposit and lending rates respectively. The nonlinear autoregressive distributed lag (NARDL) and threshold regression models are adopted. The study uses monthly data from 2002:M1 to 2019:M12. The results of the threshold regression model indicate that the degree of the effect of MPR on SINT and LINT above the estimated threshold of 11 and 13 percent respectively is greater and significant than if MPR were to be below the threshold. Moreover, estimates from the nonlinear ARDL model show that increasing MPR induces a positive effect on short-term and lending interest rates, while a negative effect holds if MPR is decreased. For LINT, the magnitude of the negative effect is little, while for SINT, the effect is statistically insignificant. This depicts the downward stickiness of prices, which supports the argument that the ineffectiveness of MPR only holds when it is adjusted downward. We recommend that the monetary authority should focus on reforming the banking system in ways that remove downward rigidities in the effect of MPR on interest rates in order to engender greater efficiency of monetary policy.

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The regional distinctiveness and variegation of financialisation in emerging economies

Karwowski

2022

Cambridge Journal of Economics

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The world region is missing from financialisation analysis of emerging economies (EEs) with little attention given to regional commonalities or comparative analysis across regions. This article sets out to identify regional commonalities in financialisation experiences across EEs, rooted in domestic institutions and countries’ varying integration into the global financial system. Bringing commonalities within and differences between emerging regions to the fore will help us understand the specificities of their political economies and current capitalist experiences. Based on existing research and data availability, six financialisation indicators across five macroeconomic aggregates are identified. Considering 2008–17, a ranking emerges with the most affected region being Central Easter Europe (CEE), followed by Latin America. Emerging Asia takes an intermediate position while EEs in the Middle East and North Africa (MENA) region and Africa show limited signs of financialisation. Our analysis identifies distinct regional features. Financialisation in CEE and Latin America is strongly driven by external forces, the key difference being the role that large domestic capitalists play in the process. Across Emerging Asia, financialisation has mainly unfolded in the private sector while state authorities could to some extent insulate public policy. In MENA, much of the private sector appears outside of the reach of financialisation because of the economic and political power of regional conglomerates. In emerging Africa, the phenomenon is concentrated in very few, if intensely affected, financialisation centres. From a theoretical perspective, we find financialisation is driven by a mix of external factors and domestically influential capitalist elites pursuing their interests.

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Finance, oil rent and premature deindustrialisation in Nigeria

Cited by 5 publications

References 29 publications

Natural resources, financial development and structural transformation in Sub-Saharan Africa

Natural resources, financial development and structural transformation in Sub-Saharan Africa

Effect of Monetary Policy Rate on Market Interest Rates in Nigeria: A Threshold and NARDL Approach

The regional distinctiveness and variegation of financialisation in emerging economies

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