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Research background: There is no consensus among scholars on the interaction effect between money supply, price, and wages despite various studies conducted to that effect. Purpose: This study investigates whether the neutrality of money assumption holds in the long run in Nigeria, using annual data from 1970 to 2018. Research methodology: The study utilized the Johansen cointegration test and the Vector Error Correction (VECM) approach for estimation. Results: The results from the Phillips curve model contradict the classical school of economics assumption that money is neutral in the long run. This implies that in the Nigerian economy, money is not neutral in the long run. The long run Fishers’ effect model shows that the coefficient of LOG (CPI) exhibits a negative sign and is statistically significant at a 5% significant level, thus contradicting the hypothesis which states that a one percent increase in consumer prices will lead to an increase in the rate of interest by one percent. The coefficient of nominal money supply indicates a negative sign and insignificant statistically on the interest rate. The Short-run estimated results showed that the coefficient of the error correction term ECM (–1) indicates a negative sign and is significant statistically in the Fishers’ effect model. The result shows the actual and equilibrium values are corrected with adjustment speeds equal to 31% yearly. Novelty: The study recommends that the Central Bank of Nigeria should ensure an effective implementation of monetary targeting measures in fine-tuning the economy and curbing inflationary pressures.

Several factors have attributed to the high child mortality rate, including poverty, age of women at birth, and length of the interval between births. Besides, the lack of financial resources in developing countries has been a challenge in addressing the prevalent high child mortality rate. Thus, this study seeks to examine the relationship between foreign aid and infant mortality in Nigeria from 1981 to 2018. Employing Auto-Regressive Distributed Lag (ARDL) technique, the study observed that foreign aid, government expenditure on health, real GDP, and carbon dioxide emission negatively impacted child mortality. Hence, the study concludes that foreign aid reduces child mortality in Nigeria. The study recommends that the government ensure that all foreign aid and grants use immediately to reduce child mortality by building the necessary infrastructure and making it readily available.JEL Classification: F35, I19.How to Cite:Adebanji, F. B., Nwosa, P. I., Ojo, O. O., & Alake, O. J. (2020). Foreign Aid and Child Mortality Rate in Nigeria. Signifikan: Jurnal Ilmu Ekonomi, 9(2), 187-194. https://doi.org/10.15408/sjie.v9i2.14960.

Research background: Output volatility has potentially adverse consequences on the economy and the stabilizing role of fiscal policy is linked to the share of government size in an economy. Hence, given the relative large share of government in developing countries, government size is expected to play an important role in stabilizing output volatility. Purpose: This study examines the relationship between output volatility and government size in Nigeria. The study seeks to establish if government size mitigates output volatility in Nigeria. Research methodology: The study employs the Autoregressive Distributed Lag (ARDL) technique after conducting stationarity and co-integration tests. Results: The results of the ARDL estimate showed that government size lessens output volatility but the magnitude was insignificant. Further, the study found that volatility in aggregate government spending; international oil price and public debt were significant determinants of output volatility in Nigeria. Novelty: This showed that the automatic stabilization role of government size on output volatility could not be established. The automatic stabilization role of fiscal policy can be improved by increasing social security transfers (pension payment), payments of unemployment benefits and increasing civil servants minimum wage.

Aim/purpose – This study aims at examining the contribution of government expenditure on service sector growth in Nigeria for the period 1970 to 2017. The service sector and government intervention are vital to economic growth of any country, hence this study. Design/methodology/approach – The study utilised the co-integration and the error correction modelling techniques. The study also conducted the stationarity tests. Findings – The regression estimates showed that government expenditure had negative and significant impact of service sector growth in Nigeria. Research implications/limitations – The implication of the findings of this study is that government expenditure over the years has not contributed positively to enhance the growth of the service sector; the study therefore recommends the need for completion of various abandoned and on-going infrastructural projects, such as road construction, water provision and electrification projects, which are vital to the growth of the service sector. Moreover, the government can through the monetary authority issue directives deposit money in banks to give loans at a reduced interest rate to investors in the service sector. Originality/value/contribution – This study has been able to show that there is the need for greater financial commitment of the government in order to improve the growth of the service sector.

Research background: The need for diversification of the Nigerian economy has been emphasized and the manufacturing sector has a major role in this. Being an oil producing country, monetary policy is an important macroeconomic policy that has always been used to manage the influence of oil price shock on the manufacturing sector. Purpose: The study examines the relationship between oil price shock, the monetary transmission mechanism and manufacturing output growth in Nigeria. Research methodology: The study applied the structural vector auto regression (SVAR) modelling technique and a descriptive analysis. Results: The results of the study show that the exchange rate is mostly affected by the oil price shock, while the monetary policy instruments and inflation rate are also very responsive to the exchange rate shock. The manufacturing sector output growth has also been shown to be strongly affected by the inflation rate and monetary policy shocks. Novelty: The study has revealed the most effective channel via which oil price shocks affect manufacturing output. The exchange rate channel of the monetary policy transmission mechanism is the most significant channel through which oil price shock affects manufacturing output growth in Nigeria. This shows that effective management of the exchange rate policy via the appropriate monetary policy approach can be used to minimize the adverse effect of oil price shocks on Nigerian manufacturing output.

The study examined the nature and structure of alternative supply of electricity in Nigeria. It has been observed that all the efforts of the Nigerian government to improve electricity supply and promote access to electricity have been proving abortive and households at various levels are confronted with the challenge of searching for alternative supply of electricity. Also, state government and some private organizations are interested in solving this challenge, but they lack appropriate empirically grounded information on the choice of alternative source of electricity. The study, which is a pure exploratory one, used primary data through well-structured questionnaire from a sample of 4,758 households across 16 local governments in Ekiti State of Nigeria. Applying descriptive statistics, the strengths and weaknesses of various alternative sources of electricity supply among households were analyzed. The results indicate that rechargeable appliances, electricity generating set, inverter and solar/inverter are the four major types of alternative sources of electricity supply common among the households. It was also revealed that out of all the positive ratings such as regularity in supply, ease of maintenance and capacity, solar powered source of alternative electricity supply appears to be the best. The only rating that is unfavorable to the solar type of alternative sources of electricity supply is in the area of affordability. Government and interested private organizations should embark on establishment of solar powered stations for some communities or distribution of solar panels and inverters at subsidized rate to households to improve their socio-economic well-being.

This study examined the relationship between income inequality and economic growth in Nigeria and its implication for economic development. The study covered the period 1981 to 2017 and employed the autoregressive distributed lag estimation technique. The results of the study showed that economic growth had positive but insignificant impact on income inequality in Nigeria. Thus, the study recommends the need for the government to ensure equitable distribution of economic gains among the poor citizens. The budgetary preparation and allocation should also be pro-poor based and tailored towards improving the welfare of the larger population and not at further enriching the few rich ones. The implementation of the above and other welfare enhancing policies would contribute to increasing the level of economic development in Nigeria.

This study examined the impact of trade policy on export diversification in Nigeria over the period 1962 to 2015. In the study trade policy was measured by trade liberalization policy and trade openness. The study employed Autoregressive Distributed Lag (ARDL) technique and the result from the estimate showed that both measures of trade policy had insignificant impact on export diversification while foreign direct investment had negative and significant effect on export diversification in Nigeria. Thus, the study concluded that trade policy has not enhance export diversification in Nigeria over the period 1962 to 2015. The study recommended among other the need for the government to de-emphasize the dependency on oil and on the discoveries of new oil wells (such as those discovered in the Southwest and Northern regions in Nigeria. The continuous emphasis on oil would incessantly decline the drive of the government in diversifying the export base of the Nigerian economy.

This study examined the role of foreign direct investment in industrial sector growth in Nigeria for the period spanning 1970 to 2016. Examining this issue is pertinent owing to the need to transform the Nigerian economy from an oil dependent economy to an industrialized economy. The study utilized the error correction modelling technique and the result of the study showed that foreign direct investment had negative and significant impact on industrial sector growth in Nigeria. The study concluded that the role of foreign direct investment in the growth of the Nigerian industrial sector had been harmful rather than enhancing it. Thus, the study recommended the need for the Federal government to shift her focus and policy directives from the oil sector to the industrial sector as this will attract the attention of foreign investors into the industrial sector. Also, there is the need for improve strategies to enhance the competitiveness of Nigerian industrial sector in attracting foreign direct investment.

Issues on exchange rate movement have continued to generate concern among economists given its implication on the macroeconomic variables – inflation, imports, domestic interest rate and investment among others. Although studies have examined the determinants of exchange rate movement, there is paucity of knowledge on the relationship between fiscal policy and exchange rate movement. Also, both theoretical and empirical literatures on fiscal policy and exchange rate movement were inconclusive. Therefore, this study examines the relationship between fiscal policy and exchange rate movement in Nigeria for the period 1980 to 2015. The study employed the Ordinary Least Square (OLS) and the regression estimate showed that fiscal policy variables were statistically significant in influencing exchange rate in Nigeria. This suggests that fiscal policy variables are significant determinants of exchange rate movement in Nigeria. Based on the findings, it was recommended that there is the need for prudent management of revenue, expenditure and debt in reducing exchange rate depreciation and ensuring stable exchange rate.

This study examined the dynamics of insurance development and economic growth in Nigeria for the period 1996–2014. Specifically, the study addressed two important issues: the impact of insurance development on economic growth and the causal nexus between insurance development and economic growth. The study utilised two techniques: ordinary least squares (OLS) and causality. The OLS regression estimate revealed that insurance development had an insignificant effect on economic growth, while the causality estimate showed a one-way causation from economic growth to insurance development. The study recommended that the government should put in place appropriate policies and regulations which would bring about sound development of the insurance sector. This would enhance the contribution of the insurance industry to the growth of the Nigerian economy. JEL Classification: E44, G22, O40

The issue of export diversification has been contentious in Nigeria due to the country’s unstable growth pattern which is majorly associated with instability in the international oil market and the poor performance of other sectors of the economy. Therefore, this study examines the link between export diversification and economic growth in Nigeria from 1962 to 2016. The study utilizes the Auto-regressive Distributed Lag (ARDL) technique. The result of this study shows that export diversification has a positive but insignificant influence on economic growth in Nigeria. The above result implies that the oil sector still dominates the Nigerian economy while the diversification drive of the government has not been significant in other sectors of the economy. Thus, the study recommends the need for conscious economic policies that would promote the diversification of the entire non-oil sector of the economy. The study concludes that export diversification is an insignificant determinant of economic growth in Nigeria.

This paper examined the relationship between oil prices (international oil price and domestic oil price) and stock market price in Nigeria for the period spanning 1985:1 to 2010:4. The study utilised the Johansen's multivariate cointegration test and the vector error correction model (VECM). The Johansen's test showed that the variables are cointegrated, and the cointegration equation revealed that oil prices have significant relationship with stock market price in the long run. The VECM estimate only revealed a unidirectional causality from stock market price to international oil price in the long run. A unidirectional causality was also observed from domestic oil price to stock market price in the long run. The study recommended that policymakers, financial analyst and shareholders should into cognizance changes in international oil price and domestic oil price in their financial decisions given the significant impact of oil prices on stock market price in Nigeria.

This study examined the causal relationships among financial development, foreign direct investment and economic growth in Nigeria over the period 1970 to 2009. The study utilized the Augmented Dickey-Fuller (ADF) for unit root test and the variables were found to be stationary, though not in their level form but in their first difference. The Johansen and Juselius (JJ) co-integration technique indicated the presence of co-integration among the variables. The tri-variate vector error correction model (VECM) test for the causal relationships showed the presence of causality among financial development, foreign investment and economic growth. The study concluded that financial development and foreign direct investment have a statistically significant causal influence on economic growth.

This study examined the causal relationships among financial development, foreign direct investment and economic growth in Nigeria over the period 1970 to 2009. The study utilized the Augmented Dickey-Fuller (ADF) for unit root test and the variables were found to be stationary, though not in their level form but in their first difference. The Johansen and Juselius (JJ) co-integration technique indicated the presence of co-integration among the variables. The tri-variate vector error correction model (VECM) test for the causal relationships showed the presence of causality among financial development, foreign investment and economic growth. The study concluded that financial development and foreign direct investment have a statistically significant causal influence on economic growth.

This study examined the differential impact of budget deficit on short and long term interest rates in Nigeria for the period 1970 to 2011. Specifically, this study addressed three issues: the causal nexus between budget deficit and interest rates; the effect of budget deficit on interest rates and the response of interest rates to shocks on budget deficit. Three models were estimated. Firstly, the causality estimate showed no evidence of causation between budget deficit and interest rates. Secondly, the regression estimate revealed that budget deficit had an insignificant effect on interest rates and thirdly, the impulse response analysis showed that shocks to budget deficit causes an immediate positive rise in long term interest rate while the positive response of the short term interest rates was delayed till the sixth year. Thus, this study concluded that, the question of whether budget deficit affects short and long term interest rates differently depends on methodology adopted.

This study examined empirically a one-to-one nexus between domestic fuel price and various macroeconomic variables in Nigeria for the period spanning 1986 to 2011. The study adopted both a vector auto-regressive (VAR) and a vector error correction (VEC) models for appropriate analysis. For pairs of variables that are integrated of the same order but not co-integrated, the VAR model revealed that a unidirectional causation exist from domestic fuel price to short term interest rate while for the pair of variables that are integrated of the same order and are co-integrated the VEC model revealed the existence of causality from domestic fuel price to inflation rate in the long run and in the short run. The study recommended that serious caution should be taking by the government on domestic fuel price increase especially in an attempt to remove fuel subsidy and deregulate the downstream sector of the oil industry.

This study examines the relationship between trade openness and unemployment rate in Nigeria from 1980 to 2018. The study utilized the auto-regressive distributed lag (ARDL) technique and the result of the study shows that trade openness had negative and significant impact on unemployment rate in Nigeria. The implication of this result is that trade openness provides employment opportunities, which reduces the unemployment rate in Nigeria. Thus, the study concludes that trade openness is a significant determinant of unemployment in Nigeria. The study recommends the need for conscious economic policies that would promote foreign private investment, capable of enhancing aggregate volume of investment in the country and contribute to employment generation in the Nigeria. Finally, government needs to explore new marketing areas for foreign investors which would also contribute to employment generation.