Nigerian Enterprise Sector and Policy Uncertainty

Ukwueze, Ezebuilo R.; Asogwa, Henry T.; Odo, Augustine Chika

doi:10.18488/journal.8.2018.62.110.120

Cited by 6 publications

(5 citation statements)

References 7 publications

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“…The policy implication suggested that Nigeria should diversify its export strategy to protect against contemporaneous effect of global EPU. In EPU-Enterprises context , Ukwueze et al. (2018)'s study confirmed that policy uncertainty has a significant negative effect on the medium and large enterprises sector in Nigeria.…”

Section: Literature Reviewmentioning

confidence: 86%

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

Zaria

Tuyon²

2023

IJSE

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PurposeApart from providing theoretical clarity, the present research aims to validate empirically that the EPU will be adversely affecting these key macroeconomic variables and that managing EPU matters for economic policymaking in Nigeria.Design/methodology/approachA dynamic autoregressive distributed lag regression model is employed to analyse the relationship from 1990 to 2020. Based on the theory of multiplier effect, the analysis could examine the positive and negative changes in policy uncertainty, as well as the reliability in macroeconomic activities such as unemployment, infrastructure development and foreign direct investment inflows.FindingsThe findings revealed EPU is cointegrated with the key economic variables in focus. Further, the negative impact of EPU on corporate investment in FDI and positive impact of EPU on unemployment confirm for both short and long-run. However, the impact of EPU on government investment in infrastructure development is found to be positive which does not confirm the expected hypothesis.Practical implicationsDynamic relationship between policy uncertainty and macroeconomic activities in Nigeria seems to exist. Taking risky decisions has impact and causing a high unemployment rate, poor infrastructural development and lower foreign direct investment inflows in the country.Originality/valuePolicy uncertainty in Nigeria is determining. Despite that, very little research found that rising uncertainty issues may significantly affect unemployment, investment in infrastructure and foreign direct investment inflows adversely. Therefore, policy uncertainty is an open space for economic activities to thrive in Nigeria, especially unemployment.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2022-0555

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Section: Literature Reviewmentioning

confidence: 86%

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

Zaria

Tuyon²

2023

IJSE

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“…Majority of these studies focused predominantly on the advanced economies of United States, Canada, United Kingdom, Europe, China, Japan, Australia and Korea. In Nigeria, Ukwueze et al (2018) examined the impact of policy uncertainty on enterprise sector using a multinomial logistic regression model and data from the World Bank 2010 enterprise survey. The study found that policy uncertainty impacts negatively on medium and large sector enterprises.…”

Section: An Overview Of the Literaturementioning

confidence: 99%

Effects of terrorism and economic policy uncertainty on economic complexity in Africa: A study of the moderating role of governance institutions

Ogbuabor,

Emeka,

Nwosu

2023

South African J Economics

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Following the paucity of empirical evidence on the effects of terrorism and uncertainty on economic complexity in Africa and the moderating role of governance institutions on these relationships, this study raised two important questions. First, how are terrorism and uncertainty impacting on economic complexity in Africa? Second, how are governance institutions moderating the effects of terrorism and uncertainty on economic complexity in Africa? To answer these questions, the study employed pooled ordinary least squares and dynamic system generalized method of moments (GMM) estimators, with a panel of 33 African countries over the period 2010–2021. We find that the unconditional effects of terrorism and uncertainty on economic complexity in Africa are predominantly negative and significant. We also find that governance institutions predominantly have unconditional positive and significant impact on economic complexity in Africa but failed to moderate the adverse effect of uncertainty on economic complexity. However, trade openness, international tourism and lagged economic complexity are potent factors promoting economic complexity in Africa, while physical capital stock remained a deterring factor. The study concluded that policymakers and leaders in Africa should engage in collaborative efforts at the African Union level to promote high‐quality institutions, while simultaneously addressing the detrimental effects of terrorism and uncertainty on the continent.

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“…Arouri et al (2016) also used OLS regression to fi nd that an increase in policy uncertainty decreases stock returns signifi cantly in the U.S., while Gulen and Ion (2016) also found that EPU depressed U.S. corporate investment. Ukwueze et al (2018) used a multinomial logistic regression model to show that uncertainty impacts negatively on medium and large enterprises in Nigeria, while CBN (2015) used GARCH framework to show that in the period 2000Q1-2015Q1, monetary policy eff ectiveness in Nigeria was not signifi cantly undermined by macroeconomic uncertainty.…”

Section: Empirical Literaturementioning

confidence: 99%

Symmetric or Asymmetric: How is Economic Growth Responding to Global Economic Uncertainty in Africa's Oil Exporters?

Ogbuabor,

Ogbonna,

Anthony-Orji

et al. 2023

Prague Economic Papers

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Motivated by the persistent fall in oil prices due to incessant uncertainty-inducing events in recent years, this study empirically examined if economic growth in Africa's top five oil exporters (Algeria, Angola, Egypt, Libya, and Nigeria) is responding asymmetrically to changes in global economic uncertainty as well as uncertainties from U.S., Europe and China using nonlinear ARDL framework from 1997Q1 to 2021Q4. We find that rising global uncertainty hampers economic growth in these economies, while declining global uncertainty significantly enhances growth in Nigeria, Angola and Libya in the short run, but becomes growth-retarding in the long run. Thus, economic growth responds asymmetrically to global uncertainty, especially in the short run. The findings are robust to U.S., Europe, and China uncertainties, except that economic growth in Libya and Algeria remained unresponsive to U.S. and China uncertainties respectively. We concluded that Africa's oil exporters should embrace policies that can strengthen their resilience to global economic uncertainty as well as uncertainties from U.S., Europe, and China.

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Nigerian Enterprise Sector and Policy Uncertainty

Cited by 6 publications

References 7 publications

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

Relationship between unemployment and policy uncertainty in Nigeria: ARDL evidence from 1990 to 2020

Effects of terrorism and economic policy uncertainty on economic complexity in Africa: A study of the moderating role of governance institutions

Symmetric or Asymmetric: How is Economic Growth Responding to Global Economic Uncertainty in Africa's Oil Exporters?

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