Entrepreneurship
Permanent URI for this collectionhttp://197.211.34.35:4000/handle/123456789/168
Entrepreneurship
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Item OIL PRICE VOLATILITY AND BALANCE OF PAYMENTS (BOP): EVIDENCE OF NIGERIA(Bingham Journal of Economics Allied Studies (BJEAS), 2019) Musa Abdullahi Sakanko; James Obilikwu; Joseph DavidThis study examines the effect of oil price volatility on Nigerian Balance of Payment (BOP) from 1980 to 2017, using the Autoregressive Distributed Lag (ARDL) bound testing technique, and the Autoregressive Conditional Heteroscedasticity (ARCH)-type model (EGARCH-M) to examine the nature and behaviour of Nigeria’s oil (Bonny light) price volatility. The results from the ARCH-type model (EGARCH-M(1,1)) indicate that the Nigeria’s oil price volatility is not mean reverting, with negative shocks generating more impact than positive shocks, which is determined negatively by global oil supply and negatively by world oil demand. Equally, while the result of the ARDL bound test confirms the presence of co-integrating (long-run) relation between Balance of Payment and oil price volatility (and oil export and economic growth), the result from the ARDL model indicates the presence of significant negative relationship between oil price volatility and Balance of Payments in Nigeria, thus indicating the negative effect (deficit) of oil price volatility on Nigeria’s BOP, due to the overreliance and dependence of the economy on oil export. The study therefore recommends the diversification of Nigeria’s export basket, for enhanced participation of non-oil products, coupled with the adoption of the Petroleum Industry Bill (PIB), so as to enhance the productivity and performance of the country’s oil and gas industry, and making it internationally competitiveItem THE DETERMINANTS OF DOMESTIC INVESTMENT IN NIGERIA: A NEW EVIDENCE FROM NON-LINEAR AUTOREGRESSIVE DISTRIBUTED LAG (NARDL) MODEL(Economics and Management, 2020) Joseph David; Musa Abdullahi Sakanko; James ObilikwuThis study employs an extended Nonlinear ARDL cointegration approach to examine the determinants of domestic investment in Nigeria over the 1980-2018 period. The result from bound testing reveal the presence of cointegrating relationship between domestic investment and the included variables. The empirical evidence demonstrates that domestic investment in Nigeria is determined by inflation, real interest and exchange rate, government spending, electric power consumption, savings, per capita income, credit to private sector and the interaction between government spending and oil price in the short-run; and inflation, interest and exchange rate, government spending, internal conflict, savings, and interaction between oil price and government spending in the long-run. The results also suggest that the impact of increase in interest, inflation and exchange rate is statistically different from their decrease. In essence, this study recommends the increase in government capital expenditure, savings, diversification of the economy, reduction of lending interest rate, maintenance of investment-friendly inflation rate, and conflicts control.