School of Innovative Technology (SIT)

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School of Innovative Technology (SIT)

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Author: search.filters.author.Joseph DavidSubject: search.filters.subject.NARDL

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    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 Obilikwu
    This 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.
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    OIL PRICE AND PUBLIC EXPENDITURE RELATIONSHIP IN NIGERIA: DOES THE LEVEL OF CORRUPTION MATTER?
    (Economic Studies, 2022) Nurudeen Abu; Joseph David; Musa Abdullahi Sakanko; Ben-Obi Onyewuchi Amaechi
    We employ the non-linear autoregressive distributed lag (NARDL) approach to examine if the oil price and public expenditure relationship are dependent on the level of corruption using Nigeria’s quarterly data during the 1996-2019 period. The result of the NARDL-bounds test to co-integration demonstrates that there is a long-run relationship between the variables, and we found evidence of long-run asymmetry in this relationship. The estimation results indicate that both positive and negative shocks to oil price have a significant positive effect on public expenditure in the long run, and the impact of oil price on public expenditure depends on the level of corruption. In addition, the marginal effect of oil price on public expenditure varies at different levels of corruption. Other important factors that drive public expenditure in Nigeria, in the long run, include spending on internal security and debt service. Based on these outcomes, we proffer some policy recommendations