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The aim of this study is to examine the impact of financial liberalization and institutional quality on the economic performance of the Asian Tigers and the SANE countries. The study used annual series that spanned the period from 1996-2020 under the framework of FMOLS. Findings of the study revealed that in the Asian Tigers, FDI inflows, FDI outflows, capital account openness and governance effectiveness had a positive and significant impact on the GDP per capita, but the impact of political stability was negative and significant. Results for the SANE countries indicated that both FDI inflows and trade openness impacted positively and significantly on the GDP per capita, while the impact of capital account openness was negative and significant. Consequently, the study is of the view that while it will be necessary for the SANE countries to upgrade their institutions in order to reap the benefits of financial openness, the Asian Tigers should stabilize their polity to improve their economy. Keywords: Institutional quality, FDI, GDP per capita, Financial development, Trade openness, Asian Tigers. JEL Classification: E02, F21, F43

This study investigated if revenue from the oil sector displaced the export of manufactures in oil-rich African countries over the period from 2000 to 2020. Using the panel ARDL model, findings indicate that in the short run, oil rents had an insignificant positive impact on the export of manufactures for all countries sampled. However, in the long run, the impact was positive. The short run results for the individual countries revealed that oil rents improved the export of manufactures for Nigeria and Ghana, while the impact for Libya, Algeria and Gabon was adverse. The study therefore concludes that the displacement of the export of manufactures by the proceeds from oil occurred at country-specific levels in the selected oil-rich African countries. Consequently, the study suggests that rents from oil in these countries should be used to develop facilities that encourage the development of the manufacturing sector.

This paper examined the role food production could play in enhancing longevity in Africa’s low income and food poverty countries. The paper used two cointegrating panel models, namely: dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) in addition to panel OLS and the sample covers the period from 2000-2020. Findings of the study reveal that in all the three panel models used, food production index impacted positively and significantly on life expectancy in the selected countries. Also, while GDP per capita did not positively influence life expectancy; government expenditure on health improved it. The positive impact of nutritional food on life expectancy is thus established. The study is therefore of the view that the government in these countries should enunciate appropriate policies to enhance food security while stepping-up health intervention measures. In addition, there is need for institutional upgrade to ensure that wealth is distributed evenly in these countries.

The contention that deteriorating terms of trade exists in countries that rely heavily on the exploitation and export of natural resources motivated us in this study. We therefore sought to investigate the impact of terms of trade on economic growth in natural resource-rich sub-Saharan African countries. We carried out the study using annual series that span a period of 1990-2019 under the framework of panel Random and Fixed effects. Our findings indicate that a long run relationship exists between GDP and the explanatory variables used in the study. Results also show that, while cross-section random effects indicates that terms of trade positively impacts on GDP, period fixed effects shows that terms of trade negatively impacts on GDP even though it is not significant. Results of our study also show that in all the models, labour force total and FDI have positive impact on GDP, while trade openness impacts on GDP negatively. We therefore recommend that the SSA natural resource-rich countries should diversify their economies away from the traditional natural resources base. Also human capital should be improved through sound education and training, while all the bottlenecks that constrain the inflow of foreign direct investment should be dismantled.

Our objective in this study is to investigate if natural resource abundance can crowed-out the manufacturing sector in Nigeria. Under the framework of an ARDL and over a period of 1990-2019, findings of the results showed that in the short-run, natural resources positively impact on the manufacturing value added in the current period; however, after a one period lag, the contribution of natural resources to the manufacturing value added becomes negative. We also found that in the short-run, real interest rate, inflation rate and trade openness are negatively linked to the manufacturing value added, while employment in industry and gross fixed capital formation are positively related to the manufacturing value added. In the long-run, natural resources contributed positively to the manufacturing value added. The long-run results also show that the gross fixed capital formation and inflation rate negatively impact on the manufacturing valued added. The implication of our finding is that natural resources rent is closely linked to the success of the manufacturing sector and as such can also crowd-out the manufacturing sector. On grounds of these findings, we recommend, among others; that the proceeds from natural resources should be used to build critical infrastructure necessary to improve the performance of the manufacturing sector. This way, the economy can be diversified to create the needed employment.

This paper investigated the impact of oil price volatility on some monetary variables in Nigeria under the framework of the GARCH models. The paper utilized three alternative error distributions in order to assist in providing better model fits and thus avoid biased results. Using monthly series over a period of 2006-2019, our findings revealed that, apart from the usual normal error distribution other error distributions perform better in the modelling of the impact of oil price volatility on monetary variables in Nigeria. The findings of the study also revealed that the asymmetric parameters of the models show evidence of leverage effect and oil price volatility plays a significant role in the determination of volatility of monetary variables. We, therefore, recommend that in modelling volatility of oil price and monetary variables in Nigeria, different error distributions should be considered.

Over the last decade, Nigeria has witnessed rising capital inflows that have kept the monetary authorities on their toes. This study, therefore, investigated the effectiveness of sterilization policy in controlling money supply and capital inflows in Nigeria. The need for this investigation arose from observed dearth of study in this area in Nigeria as well as the surge in capital inflows within the study period with its likely macroeconomic implications. The study would answer the question: (1) to what extent does sterilization effort of the Central Bank of Nigeria effective in controlling capital inflows in Nigeria, (2) to what extent is sterilization policy able to regulate money supply in Nigeria. By utilizing monthly data spanning a period of 2010-2018 under the framework of Two Stage Least Squares (2SLS), findings show that the sterilization policy of the CBN is effective in regulating money supply and depressing capital inflows both in period of normal capital inflows and in period of intensive capital inflows. We therefore recommend that in periods of sudden and volatile capital inflows, sterilization measure should be given a priority in order to stave off the negative consequences of such unexpected inflows. We also recommend fiscal prudency on the part of the fiscal authorities, especially within the period of high and volatile capital inflows just as the observance of a synergy between fiscal and monetary policies is not ruled out.