Papers by Kolawole Subair
Boydell and Brewer eBooks, Dec 31, 2011
Jinnah Business Review, 2020
This study adopts the Vector Error Correction Model (VECM) and the variance decomposition techniq... more This study adopts the Vector Error Correction Model (VECM) and the variance decomposition techniques in testing the financial acceleration theory in banks intermediation. The bank intermediation variable is categorized into variable deposit mobilization, loan administration, delegated monitoring and risk diversification. Using cointegration analysis and quarterly secondary data between 2009 and 2016, this study assessed the short and long run influence of the categorized bank activities on their stock prices. The results indicate that banks intermediation exact influence on both the short and long run stock prices of DMBs in Nigeria as the ECM (-0.1420) result showed a significant speed of adjustment towards equilibrium while the overall model fitness showed that there is a long run causality running from banks intermediation measures and stock prices. Similarly, the result of the variance decomposition of stock prices shocks indicate that over time a significantly increasing propor...
Oradea Journal of Business and Economics, 2021
The question whether globalization and its corresponding impacts carry a blessing or curse in dev... more The question whether globalization and its corresponding impacts carry a blessing or curse in developing countries has been a controversial issue among both the scholars and the policymakers, against this background this study provided an empirical answer to the question whether globalisation is a curse or cure to industrial development in Nigeria between 1990 and 2019 within the framework of the Fully Modified Ordinary Least Squares (FMOLS) and Granger causality test. Consequently, the following principal findings emerged in this study. Firstly, both FDI inflows and trade openness which depict economic globalization had a negative relationship with industrial development respectively. Though, trade openness was significant while FDI inflows showed otherwise. In the same vein, a unidirectional causality ran from manufacturing value added to FDI inflows. However, no feedback relationship existed between trade openness and manufacturing value added. Therefore, this study submits that ...
Despite the significance attached to inflow of foreign direct investment (FDI) and the developmen... more Despite the significance attached to inflow of foreign direct investment (FDI) and the development of small and medium scale enterprises (SMEs) as essential driving forces for economic growth, the extent to which SMEs have developed in response to this inflow has remained an issue of concern given Nigeria’s poor economic predicament. Thus this paper investigates the extent to which FDI influences SME development in Nigeria. This paper extends beyond the existing literature given the cross-sectoral analysis of the Nigerian economy in addition to the analysis of FDI and SME development through the use of ordinary least square. Hence, compared to the level of generalization in the literature, result from this study is more precise while at the same time addresses small and medium scale businesses in different sectors of the Nigerian economy with respect to FDI.
Journal of Economics, 2013
Corruption in Nigeria arises out of policy inconsistencies that create avenues for illegal accumu... more Corruption in Nigeria arises out of policy inconsistencies that create avenues for illegal accumulation of wealth while to a greater extent affects its development. Using the ordinary least square (OLS) technique, the study reveals a limited relationship between corruption and economic growth. That notwithstanding, it apparently distorts the country's prosperity through gross infrastructural decay, continuous and high rate of unemployment, high incidence of robberies and other social vices. This study thus suggests multiple approaches to solving the problems of pervasive corruption in Nigeria.
Irrespective of the indicators used for measuring development, the probability of attaining highe... more Irrespective of the indicators used for measuring development, the probability of attaining higher rate of growth by industrialized nations is very high. This is because job opportunities are created and consequently have multiplier effect on economic development. It is therefore imperative that for development to take its cause in the third world countries, the transition to modern economy requires some degree of industrialization. In achieving this, these countries should concentrate on those industries that utilize more of their endowed resources as input. Where the resource use is not managed properly, the environment gets destroyed. Hence just as industrialization can spur economic development, it can also generate environmental problems. Unfortunately and because of peculiar problems associated with land availability in Nigeria for instance, the same location harbours farm lands and industrial sites. On this basis, the paper critically examines the impacts of industrial activi...
Traditional assessment of economic performance has been based upon traditional production factors... more Traditional assessment of economic performance has been based upon traditional production factors such as land, labour and capital but the importance of the knowledge-based assets’ role in firm’s performance increase undeniably. Knowledge assets or intellectual capital may be mentioned as the “hidden” assets of a firm which is based on Human capital. According to this statement selection of the human resource becomes a much more important case that has to be achieved for firms and other agents. The development of internet in 1990’s has caused a kind of revolution in labour market which provides significant cost advantage forming a candidate pool. For a Human Resources Manager (HRM), choosing an appropriate candidate for the suitable position is just as difficult as to click his/her PC’s mouse button. However, efficiency requires all labour forces to be employed under the assumption that the supplier (candidate) knows the true quality of him/herself whereas the HRMs (dealer) are unab...
African Journal of Accounting, Economics, …, 2008
... the need for NEPA to operate a tariff structure that would facilitate increased revenue gener... more ... the need for NEPA to operate a tariff structure that would facilitate increased revenue generation which would ... An empirical analysis of the impact of tariff, income and electricity generation on aggregate ... The challenges are copious, as the slum world brings with it mass poverty ...
Journal of Human Ecology, 2009
The growth rates in the industrialized nations have been impressive most especially in the area o... more The growth rates in the industrialized nations have been impressive most especially in the area of job creations. This has had impact on economic development. It is very essential for the third world countries to industrialize if they must be freed from poverty and underdevelopment. But since most of these countries have primary resources, their focus should be on those industries that use more of these resources as inputs. Nigeria's weakness in regional planning, for instance, encourages locating farmlands and manufacturing industries in the same area. Such is the case of Ewekoro-a small and all rural community in the southwest , Nigeria. This community harbours a cement factory sitting side by side with a farming community. Respondents for the study were drawn from the staff of the factory and the Ewekoro farmers. The goal was to determine the extent of the community's development, the degree of environmental degradation and the impact of both on agricultural output in the area. To some extent the activities of the cement factory affect agricultural output through environmental degradation. The study shows how all this have occurred. It then points to how economic growth can be facilitated with lesser impact on the environment.
Research Papers in Economics, 2020
Despite the magnitude of remittances as an alternative source of investment financing in Africa, ... more Despite the magnitude of remittances as an alternative source of investment financing in Africa, the financial sector in Africa has significantly remained underdeveloped and unstable. Finding a solution to Africa's financial deregulation problems has proved tenacious partly because of inadequate literature that explain the nature of Africa capital and financial markets which has shown to be unorganised, spatially fragmented, highly segmented and invariably externally dependent. We examine the structural linkages between remittances and financial sector development in Africa. Panel data on indices of remittances was regressed on indices of financial sector development in fifty-three (53) African countries from 1986 through 2017 using the Pooled Mean Group (PMG) estimation procedure. We accounted for cross-sectional dependence inherent in ordinary panel estimation and found a basis for the strict orthogonal relationship among the variables. Findings revealed a positive long-run relationship between remittances and financial development with a significant (positive) short-run relationship. It is suggested that, while attracting migrants' transfers which can have significant short-run poverty-alleviating advantages, in the long run, it might be more beneficial for African governments to foster financial sector development using alternative financial development strategies.
economic growth and structural change. Trade liberalization is one of the most controversial poli... more economic growth and structural change. Trade liberalization is one of the most controversial policies in international economics and finance. Copious of arguments have been put forward about if free trade and reduction of trade barriers will help the economy or not. Those in favour of the policy believe that it can stimulate economic growth of African economies while others maintained that trade liberalization may not provide positive contribution to long run growth of African economies. This study adopts the ordinary least squares in estimating the influence of trade liberalization on economic growth in Nigeria between1970 and 2012 with a view to examining whether a long term relationship exists between the two and also to check for structural change that may have occurred with the implementation of a free trade regime in 1986.Trade liberalization was conceived as openness and proxied as the ratio of total trade to GDP. Time series data sourced from the World Development indicator ...
Market Forces, 2014
The study obtains time-series data of three independent variables (Public Expenditure, Debt, and ... more The study obtains time-series data of three independent variables (Public Expenditure, Debt, and Reserve) and a dependent variable (Gross National Product) between 1971 and 2011 in Nigeria with the aim of verifying the sustainability of the economy. Following Keynesian Model, it formulates hypotheses, estimates parameters, and uses Augmented Dickey-Fuller test to test their significance by using E-View 7. It discovers that Nigerian economy is solvent and sustainable with positive relationship between Public Income, Expenditure and Reserve but negative relationship between the Public Income and Public Debt. It recommends increase and judicious use of external debts and appreciates internalization of public reserves by disbursement of some of the proceeds to the Traditional Financial Institution (TFI) to attain the desired economic objectives of Nigeria. Despite its applicability, desirability and productivity; the surmountable limitations of its recommendation are fear of corruption...
International Conference on Business, Sociology and Applied Sciences (ICBSAS'14) March 26-27, 2014 Kuala Lumpur (Malaysia)
Abstract—The study obtains time-series data of three independent variables (Public Expenditure, D... more Abstract—The study obtains time-series data of three independent variables (Public Expenditure, Debt, and Reserve) and a dependent variable (Gross National Product) between 1971 and 2011 in Nigeria with the aim of verifying the sustainability of the economy. Following Keynesian Model, it formulate hypotheses, estimates parameters, and uses Augmented Dickey-Fuller test to test their significance via used E-View 7. It discovers that Nigerian economy is solvent and sustainable with positive relationship between Public Income, Expenditure and Reserve but negative relationship between the Public Income and Public Debt. It recommends increase and judicious spending of External Debts and appreciates Internalization of Public Reserves by disbursement of some of the proceeds to the Traditional Financial Institution (TFI) to attain the desired economic objectives of Nigerians. Despite its applicability, desirability and productivity; the surmountable limitations of its recommendation are fear of corruption and marginalization among others. Keywords—Assets, Solvency, Sustainability, and Traditional Financial System.
Market Forces, 2015
Copious of arguments for debt contractions have been put forward especially in favour of the need... more Copious of arguments for debt contractions have been put forward especially in favour of the need for developing countries to attain economic growth. This arises as a result of inad¬equate savings coupled with the inability of the developing countries to operate within the stipulated debt limit. As such the debts mount and the burden keeps rising. The mounting debt is more complicated when it is externally sourced as it requires foreign exchange for its redemption. Unfortunately the fluctuation in the exchange rate further inhibits the payment of interest that eventually adds more to the initial principal amount borrowed. Observing the Nigeria debt portfolio and its exchange rate movements for some years, the latter's impact has continued to influence the former negatively. This paper thus seeks to use co- integration technique to test for the extent of their relationship from 1980 to 2010. By so doing, the exchange rate influences the external debt to a greater extent and thus ...
Journal of Public Affairs, 2020
Despite the magnitude of remittances as an alternative source of investment financing in Africa, ... more Despite the magnitude of remittances as an alternative source of investment financing in Africa, the financial sector in Africa has significantly remained underdeveloped and unstable. Finding a solution to Africa's financial deregulation problems has proved tenacious partly because of inadequate literature that explain the nature of Africa capital and financial markets which has shown to be unorganised, spatially fragmented, highly segmented and invariably externally dependent. We examine the structural linkages between remittances and financial sector development in Africa. Panel data on indices of remittances was regressed on indices of financial sector development in fifty-three (53) African countries from 1986 through 2017 using the Pooled Mean Group (PMG) estimation procedure. We accounted for cross-sectional dependence inherent in ordinary panel estimation and found a basis for the strict orthogonal relationship among the variables. Findings revealed a positive long-run re...
The study examines the microeconomic foundation of money demand in Nigeria. It adopted weighted a... more The study examines the microeconomic foundation of money demand in Nigeria. It adopted weighted aggregate value of wealth to examine the problem of aggregation of monetary variables in Nigeria. Empirical analysis of the data from 1980 to 2004 using a co-integration test reveals an equilibrium behavior of money demand, wealth, composite consumer price index, and private consumption. It reinforces the fact that co-integration is purely a means to an end in analyzing the long-run relationship among variables. However, the use of simple sum aggregated variables in this study despite its being problematic yields different results. The micro attempt at aggregating these variables is therefore a probable solution to the problem at hand. The result shows that a positive impact of private consumption on money demand is negligible. On the other hand, the increase in inflation continues to pose a serious challenge to money demand,thus raising the desire to hold money. The demand for money cons...
Despite a large and growing list of studies on COVID-19 across space and time and on heterogeneou... more Despite a large and growing list of studies on COVID-19 across space and time and on heterogeneous social, environmental and welfare issues, the empirical relations on the consequences of COVID-19 pandemic and Africa’s market capitalization objectives remain dimly discerned. Even more worrisome is Africa, where the condition for growth and development has not been adequately fulfilled. This structural ambiguity calls for a policy document that is evidencebased to reach conclusions to aid the containment, risk analysis, structures and features of the deadly and fast-spreading disease. This study employed negative binomial and the Poisson regression to establish the contemporaneous influence of COVID-19 pandemic on market capitalization capabilities in Africa. Health data from various reports of the World Health Organization (WHO) is regressed on the all-share index from World Development Indicators (WDI) to establish a clear line of thought. It is found that the growth of confirmed c...
Trade liberalization is one of the most controversial policies in international economics and fin... more Trade liberalization is one of the most controversial policies in international economics and finance. Copious of arguments have been put forward about if free trade and reduction of trade barriers will help the economy or not. Those in favour of the policy believe that it can stimulate economic growth of African economies while others maintained that trade liberalization may not provide positive contribution to long run growth of African economies. This study adopts the ordinary least squares in estimating the influence of trade liberalization on economic growth in Nigeria between1970 and 2012 with a view to examining whether a long term relationship exists between the two and also to check for structural change that may have occurred with the implementation of a free trade regime in 1986.Trade liberalization was conceived as openness and proxied as the ratio of total trade to GDP. Time series data sourced from the World Development indicator (WDI) of the World Bank and the Central...
Jinnah Business Review
The re-basing of the Nigerian economic data since 2013 has shown the growing relevance of the ser... more The re-basing of the Nigerian economic data since 2013 has shown the growing relevance of the service sector to the economic development of Nigeria. The need to investigate the nexus between the service sector and macroeconomic variables become imperative in view of inadequate research attention in the past and the present desirable concern for policy shifts in favor of promoting activities in the sector. It is in this context that our paper considered the effects of exchange rate behavior on the performance of the service industry in Nigeria. More so that it is becoming increasingly clear that the openness of the Nigerian economy to the outside world and the seeming dollarization of earnings from economic activities, even with high local content, have varied impacts on economic behavior in many sectors of the economy. A comprehensive study was carried out to determine the relationship between the dynamics of exchange rate and the service industry activities. The data used include s...
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Papers by Kolawole Subair