This paper examines the effect of fiscal instability component on the fluctuation in welfare indi... more This paper examines the effect of fiscal instability component on the fluctuation in welfare indicator for 45 years. Descriptive statistics reveals that fiscal component and real GDP per capital are largely unstable and Hodrick-Prescott filter (HPF) is employed as a smoothing measure of the long-term component. Descriptive statistics reveals that lesser government revenue had been committed to the development purposes compared with recurrent expenditure since the beginning of the fourth republic in Nigeria. Using ARDL model, the study found that, there exist a long-run association among the variable of interest as one percent increase in the rate of instability in recurrent expenditure led to an approximate of 30% reduction in the fluctuation of the welfare indicator while instability in the capital expenditure led to 36% increase in the fluctuation of the GDP per capital. In the short-run however, 1% increase in the immediate lagged value of cyclical capital expenditure had signifi...
This study investigates the determinants of FDI inflows in six Central and Eastern European count... more This study investigates the determinants of FDI inflows in six Central and Eastern European countries (CEEC) by incorporating the traditional factors and institutional variables over the 1996–2009 period. The study identifies whether and how these determinant factors differ across four investor countries (EU-15, the US, China, and Japan). The results verify the positive and economically significant role of GDP size, trade openness, EU membership, and institutions (measured by economic freedoms, state fragility, political rights, and civil liberties indices) on FDI inflows. The results also reveal the existence of notable differences in the determinant factors across four investor countries.
This study examined the direction of causality and relationship between governance and developmen... more This study examined the direction of causality and relationship between governance and development in a panel of 37 African countries during 1996 to 2016 period. The Panel cointegration supports the existence of long-run relationship between governance and development in African countries. The study found bidirectional causality between governance and development in the short-run and unidirectional causality from development to governance in the long-run for African countries. The policy implication from these findings suggests that for African countries to experience good governance in the long-run, there must be in place an improved human development indicator that affects positively the wellbeing and standard of living of the citizenries.
The current global drive towards devolution of financial resources and responsibilities has been ... more The current global drive towards devolution of financial resources and responsibilities has been increasingly justified on the basis that greater transfers of these financial resources and responsibilities to sub-central governments are theoretically expected to deliver greater economic efficiency in the provision of public goods and services and hence greater economic growth. There is a mixed result on these theoretical expectations across earlier empirical literatures. Using the instrumental variables (IV) technique of analysis with the recent data from Nigeria for the period 1970-2013, this study found no robust significant effect of the decentralisation of spending or revenue on growth of real GDP per capital in Nigeria. The implication of this to the policy makers is that when it comes to the determinants of improved economic activities, decentralisation either fiscal expenditure or revenue side would not be instrumental to economic growth possibly because of existence of endem...
The study examined the extent of the effect of control of corruption and political (in)stability ... more The study examined the extent of the effect of control of corruption and political (in)stability on economic development in African countries. The study employed System General Method of Moment (GMM) framework on recent pooled of data from thirty-seven African countries over a period of 1996 and 2016.The study found evidence of political instability though not statistically significant and ineffective control of corruption in African countries. The study also found that simultaneous implementation of policies towards ensuring political stability and effective control of corruption are not complementary and has more negative impact on development in the region. Both policies are substitute in the context of African economy, and hence should be pursued through sequential reforms. This study also found that continuous implementation of the current policies towards having both political stability and effective corruption control may not have positive impact on development in Africa. The...
This study is a cross-sectional analysis that explores the significance of fiscal federalism in t... more This study is a cross-sectional analysis that explores the significance of fiscal federalism in the poverty reduction efforts of the government of Federal Republic of Nigeria across 36 states and Federal Capital Territory (FCT). The descriptive analysis showed that the percentage of those who were multi-dimensional-poor have increased between 2014 and 2016 as such surge is recorded in the 23 States of the federation, Yobe State recorded the highest percent of population who were multi-dimensionally poor in 2014 followed by Kebbi State. In 2016 however, more than 63 percent of population from Yobe State were suffering from multi-dimensional poverty, the highest in the federation followed by Zamfara state. The study found that Lagos State had lowest number of populace suffering from multi-dimensional poverty index which is less than 2 percent in 2014 with only marginal increase in 2016. The findings from the study is consistent with the theory of decentralization as fiscal federalism ...
Journal of economics and sustainable development, 2017
This paper examined the state of finance of sub-nationals in Nigeria. Descriptive statistics was ... more This paper examined the state of finance of sub-nationals in Nigeria. Descriptive statistics was employed to analyze the financial operation and management of States and Local Governments in Nigeria’s fourth republic. The study found Allocation from the Federation Account (AFA) as the major source of revenue to both states and local governments but State Allocation to Local (SAL) was the least source revenue to Local Government in Nigeria. The study also discovered that Internally Generated Revenue (IGR) was the second generator of revenue to the State Governments most especially from 2006 to 2014 but poor source of fund to Local Governments. The study also found that both the State and Local government recurrent expenditure i.e. SRE and LRE (payment of wages and salaries) were slopped upward however, while State Government Capital Expenditure (SCE) was also increasing but below State Government Recurrent Expenditure (SRE), Local Government Capital Expenditure (LCE) was decreasing. ...
The aim of this paper is to examine the relative effect of tax policy reforms on economic growth ... more The aim of this paper is to examine the relative effect of tax policy reforms on economic growth with a view to analyzing whether tax burden and tax mix have direct or indirect association with economic growth in Nigeria using annual data from 1970-2012. Error Correction Mechanism (ECM) and cointegration technique of analysis are utilized to analyze the data and draw policy inferences. The empirical results show that both tax burden (t=17.78, p
This study contends that poverty is a global phenomenon and no nation is immune to the scourge it... more This study contends that poverty is a global phenomenon and no nation is immune to the scourge it is capable of causing especially when determined and clear policy measures are not put in place to check the menace. The objectives that interrogates the nerves of this discourse is to assess the rate of poverty in Nigeria as well as examine the role of government in poverty eradication. Also, to identify the various initiatives that governments in Nigeria have put in place since the pre; through and the post Structural Adjustment Programme era of the nation. Findings from the study reveals that attitudinal response and approach of both the government and the governed is appalling. Also, there exist a sharp disconnect between the government and the governed which has resulted into policy formulations that fail to meet the yearning, demand and desire of the people. Meanwhile, it was established that political and policy instability, poor targeting mechanism and inadequate coordination am...
This study examined the influence of government corporate tax policy on the performance of 54 rand... more This study examined the influence of government corporate tax policy on the performance of 54 randomly selected listed companies that cut across 17 categories of non-fi nancial firms in Nigeria over a period of 1990-2002. Using Generalised Method of Moment (GMM) and contrary to the expectation, the study found positive and significant relationship between corporate tax policy and the output performance of quoted manufacturing firms in Nigeria. This may be an indication that government revenue from corporate tax was judiciously expended on productive government expenditure such as road, security and power as nearly all firms selected are located in Lagos State. The study therefore, suggested that corporate tax if judiciously used in the provision of physical infrastructures and other public goods would reduce the cost of production of the private sector in Nigeria. JEL Classification: H, H2, H25
This study contends that poverty is a global phenomenon and no nation is immune to the scourge it... more This study contends that poverty is a global phenomenon and no nation is immune to the scourge it is capable of causing especially when determined and clear policy measures are not put in place to check the menace. The objectives that interrogates the nerves of this discourse is to assess the rate of poverty in Nigeria as well as examine the role of government in poverty eradication. Also, to identify the various initiatives that governments in Nigeria have put in place since the pre; through and the post Structural Adjustment Programme era of the nation. Findings from the study reveals that attitudinal response and approach of both the government and the governed is appalling. Also, there exist a sharp disconnect between the government and the governed which has resulted into policy formulations that fail to meet the yearning, demand and desire of the people. Meanwhile, it was established that political and policy instability, poor targeting mechanism and inadequate coordination am...
This paper examines the effect of fiscal instability component on the fluctuation in welfare indi... more This paper examines the effect of fiscal instability component on the fluctuation in welfare indicator for 45 years. Descriptive statistics reveals that fiscal component and real GDP per capital are largely unstable and Hodrick-Prescott filter (HPF) is employed as a smoothing measure of the long-term component. Descriptive statistics reveals that lesser government revenue had been committed to the development purposes compared with recurrent expenditure since the beginning of the fourth republic in Nigeria. Using ARDL model, the study found that, there exist a long-run association among the variable of interest as one percent increase in the rate of instability in recurrent expenditure led to an approximate of 30% reduction in the fluctuation of the welfare indicator while instability in the capital expenditure led to 36% increase in the fluctuation of the GDP per capital. In the short-run however, 1% increase in the immediate lagged value of cyclical capital expenditure had signifi...
This study investigates the determinants of FDI inflows in six Central and Eastern European count... more This study investigates the determinants of FDI inflows in six Central and Eastern European countries (CEEC) by incorporating the traditional factors and institutional variables over the 1996–2009 period. The study identifies whether and how these determinant factors differ across four investor countries (EU-15, the US, China, and Japan). The results verify the positive and economically significant role of GDP size, trade openness, EU membership, and institutions (measured by economic freedoms, state fragility, political rights, and civil liberties indices) on FDI inflows. The results also reveal the existence of notable differences in the determinant factors across four investor countries.
This study examined the direction of causality and relationship between governance and developmen... more This study examined the direction of causality and relationship between governance and development in a panel of 37 African countries during 1996 to 2016 period. The Panel cointegration supports the existence of long-run relationship between governance and development in African countries. The study found bidirectional causality between governance and development in the short-run and unidirectional causality from development to governance in the long-run for African countries. The policy implication from these findings suggests that for African countries to experience good governance in the long-run, there must be in place an improved human development indicator that affects positively the wellbeing and standard of living of the citizenries.
The current global drive towards devolution of financial resources and responsibilities has been ... more The current global drive towards devolution of financial resources and responsibilities has been increasingly justified on the basis that greater transfers of these financial resources and responsibilities to sub-central governments are theoretically expected to deliver greater economic efficiency in the provision of public goods and services and hence greater economic growth. There is a mixed result on these theoretical expectations across earlier empirical literatures. Using the instrumental variables (IV) technique of analysis with the recent data from Nigeria for the period 1970-2013, this study found no robust significant effect of the decentralisation of spending or revenue on growth of real GDP per capital in Nigeria. The implication of this to the policy makers is that when it comes to the determinants of improved economic activities, decentralisation either fiscal expenditure or revenue side would not be instrumental to economic growth possibly because of existence of endem...
The study examined the extent of the effect of control of corruption and political (in)stability ... more The study examined the extent of the effect of control of corruption and political (in)stability on economic development in African countries. The study employed System General Method of Moment (GMM) framework on recent pooled of data from thirty-seven African countries over a period of 1996 and 2016.The study found evidence of political instability though not statistically significant and ineffective control of corruption in African countries. The study also found that simultaneous implementation of policies towards ensuring political stability and effective control of corruption are not complementary and has more negative impact on development in the region. Both policies are substitute in the context of African economy, and hence should be pursued through sequential reforms. This study also found that continuous implementation of the current policies towards having both political stability and effective corruption control may not have positive impact on development in Africa. The...
This study is a cross-sectional analysis that explores the significance of fiscal federalism in t... more This study is a cross-sectional analysis that explores the significance of fiscal federalism in the poverty reduction efforts of the government of Federal Republic of Nigeria across 36 states and Federal Capital Territory (FCT). The descriptive analysis showed that the percentage of those who were multi-dimensional-poor have increased between 2014 and 2016 as such surge is recorded in the 23 States of the federation, Yobe State recorded the highest percent of population who were multi-dimensionally poor in 2014 followed by Kebbi State. In 2016 however, more than 63 percent of population from Yobe State were suffering from multi-dimensional poverty, the highest in the federation followed by Zamfara state. The study found that Lagos State had lowest number of populace suffering from multi-dimensional poverty index which is less than 2 percent in 2014 with only marginal increase in 2016. The findings from the study is consistent with the theory of decentralization as fiscal federalism ...
Journal of economics and sustainable development, 2017
This paper examined the state of finance of sub-nationals in Nigeria. Descriptive statistics was ... more This paper examined the state of finance of sub-nationals in Nigeria. Descriptive statistics was employed to analyze the financial operation and management of States and Local Governments in Nigeria’s fourth republic. The study found Allocation from the Federation Account (AFA) as the major source of revenue to both states and local governments but State Allocation to Local (SAL) was the least source revenue to Local Government in Nigeria. The study also discovered that Internally Generated Revenue (IGR) was the second generator of revenue to the State Governments most especially from 2006 to 2014 but poor source of fund to Local Governments. The study also found that both the State and Local government recurrent expenditure i.e. SRE and LRE (payment of wages and salaries) were slopped upward however, while State Government Capital Expenditure (SCE) was also increasing but below State Government Recurrent Expenditure (SRE), Local Government Capital Expenditure (LCE) was decreasing. ...
The aim of this paper is to examine the relative effect of tax policy reforms on economic growth ... more The aim of this paper is to examine the relative effect of tax policy reforms on economic growth with a view to analyzing whether tax burden and tax mix have direct or indirect association with economic growth in Nigeria using annual data from 1970-2012. Error Correction Mechanism (ECM) and cointegration technique of analysis are utilized to analyze the data and draw policy inferences. The empirical results show that both tax burden (t=17.78, p
This study contends that poverty is a global phenomenon and no nation is immune to the scourge it... more This study contends that poverty is a global phenomenon and no nation is immune to the scourge it is capable of causing especially when determined and clear policy measures are not put in place to check the menace. The objectives that interrogates the nerves of this discourse is to assess the rate of poverty in Nigeria as well as examine the role of government in poverty eradication. Also, to identify the various initiatives that governments in Nigeria have put in place since the pre; through and the post Structural Adjustment Programme era of the nation. Findings from the study reveals that attitudinal response and approach of both the government and the governed is appalling. Also, there exist a sharp disconnect between the government and the governed which has resulted into policy formulations that fail to meet the yearning, demand and desire of the people. Meanwhile, it was established that political and policy instability, poor targeting mechanism and inadequate coordination am...
This study examined the influence of government corporate tax policy on the performance of 54 rand... more This study examined the influence of government corporate tax policy on the performance of 54 randomly selected listed companies that cut across 17 categories of non-fi nancial firms in Nigeria over a period of 1990-2002. Using Generalised Method of Moment (GMM) and contrary to the expectation, the study found positive and significant relationship between corporate tax policy and the output performance of quoted manufacturing firms in Nigeria. This may be an indication that government revenue from corporate tax was judiciously expended on productive government expenditure such as road, security and power as nearly all firms selected are located in Lagos State. The study therefore, suggested that corporate tax if judiciously used in the provision of physical infrastructures and other public goods would reduce the cost of production of the private sector in Nigeria. JEL Classification: H, H2, H25
This study contends that poverty is a global phenomenon and no nation is immune to the scourge it... more This study contends that poverty is a global phenomenon and no nation is immune to the scourge it is capable of causing especially when determined and clear policy measures are not put in place to check the menace. The objectives that interrogates the nerves of this discourse is to assess the rate of poverty in Nigeria as well as examine the role of government in poverty eradication. Also, to identify the various initiatives that governments in Nigeria have put in place since the pre; through and the post Structural Adjustment Programme era of the nation. Findings from the study reveals that attitudinal response and approach of both the government and the governed is appalling. Also, there exist a sharp disconnect between the government and the governed which has resulted into policy formulations that fail to meet the yearning, demand and desire of the people. Meanwhile, it was established that political and policy instability, poor targeting mechanism and inadequate coordination am...
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Papers by Hammed Adefeso