Papers by Omolola S Olarinde
Journal of economics and sustainable development, 2015
Government Expenditure is an important macroeconomic objective in an economy. In this study, the ... more Government Expenditure is an important macroeconomic objective in an economy. In this study, the structure and size of government expenditure determine the pattern of growth in the economy. The Keynesian aggregate expenditure is adopted as a framework to explain the role of government spending on output. The Johansen cointegration test was applied to verify the long run relationship between the variables and the Granger causality test was employed to determine the existence and direction of causation between government expenditure and economic growth. The autoregressive distributed lag (ARDL) methodology was employed to examine the relationship between the independent variables and the dependent variable. From the analysis and findings, government spending significantly and positively explained the economic growth of the country. The relationship was significant at 5 percent level. In comparing the results of the total government expenditure with capital and recurrent expenditure, t...
One of such important option for diversifying energy sources is the production of biofuels. Biofu... more One of such important option for diversifying energy sources is the production of biofuels. Biofuels include fuels produced and derived from plants, biomass, and other living organisms such as fats from animals and vegetable oil. Biofuels have been defined in Nigeria to include fuel ethanol, bio-diesel and other fuels made from biomass and primarily used for automotive, thermal and power generation, according to quality specifications stipulated by the Standards Organization of Nigeria (SON), Department of Petroleum Resources (DPR), and any other competent government agency. Unlike fossil fuels that are explored from extensive and often expensive oil exploration activities, biofuels are derived from plants and nature. As such, biofuels have gained increased public attention as a
Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the... more Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the argument that remittances can improve economic growth but can also worsen overall wellbeing. Reasons for this are, first, remittances beneficiaries in Nigeria are concentrated in the middle income class with high propensity to consume. Second, due to high propensity to consume, consumption triggers good prices in such a way as to worsen the purchasing power of the poor. Third, institutions are weak and the poor do not benefit from weak institution. Thus good quality institutions should be encouraged while ostentatious spending should be discouraged.
This paper benefits from country specific data on migration to examine its effect on Nigeria’s hu... more This paper benefits from country specific data on migration to examine its effect on Nigeria’s human capital formation and economic growth. It specified an equation predicated on the New Economics of Labour Migration (NELM) considering migration probabilities as an incentive to build additional skills. The model established the effect of migration, cost of acquiring additional skills and other control variables (population and access to education) on human capital formation. An exogenous growth model captured the effects of migration, human capital formation, public spending on education, remittances and access to education on economic growth. The Ordinary Least Squares (OLS) technique was applied to a distributed lag specification covering the period 1980 to 2011. Long run relationship among the variables was established employing the Johansen cointegration technique. Data for the estimates were collected from the World Bank (World Development Indicators) and Immigration Statistics...
Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the... more Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the argument that remittances can improve economic growth but can also worsen overall wellbeing. Reasons for this are, first, remittances beneficiaries in Nigeria are concentrated in the middle income class with high propensity to consume. Second, due to high propensity to consume, consumption triggers good prices in such a way as to worsen the purchasing power of the poor. Third, institutions are weak and the poor do not benefit from weak institution. Thus good quality institutions should be encouraged while ostentatious spending should be discouraged.
Journal of Sustainable Development Law and Policy (The), Dec 20, 2018
Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption h... more Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption has been skewed towards household use, and below thresholds for sector-driven growth. The article updates, in time and methodology, those studies highlighting the significance of energy use for economic growth, using the Bound test and the Auto Regression Distributed Lag (ARDL) to establish the long- and short-run relationships between disaggregated energy consumption and economic growth in Nigeria from 1990 to 2016. The variables considered are real GDP, energy consumption decomposed into electricity and petroleum consumption, labour and capital. The findings show that, in the short and long run, petroleum consumption and labour have a significant positive relationship with GDP. Furthermore, the causality results show that feedback causation between economic growth and energy consumption as well as labour exists, while one-way causation runs from labour to economic growth. The study reco...
Journal of Sustainable Development Law and Policy (The), Dec 20, 2018
Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption h... more Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption has been skewed towards household use, and below thresholds for sector-driven growth. The article updates, in time and methodology, those studies highlighting the significance of energy use for economic growth, using the Bound test and the Auto Regression Distributed Lag (ARDL) to establish the long-and short-run relationships between disaggregated energy consumption and economic growth in Nigeria from 1990 to 2016. The variables considered are real GDP, energy consumption decomposed into electricity and petroleum consumption, labour and capital. The findings show that, in the short and long run, petroleum consumption and labour have a significant positive relationship with GDP. Furthermore, the causality results show that feedback causation between economic growth and energy consumption as well as labour exists, while one-way causation runs from labour to economic growth. The study recommends diversification of the power-generation portfolio in the country, as this will improve energy consumption. Also, full deregulating policies in the energy sector would encourage industrialization and move energy demand towards increasingly productive uses. Finally, a strong institutional framework is needed to ensure energy policies achieve their objectives and targets.
Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption h... more Energy is critical to the survival and expansion of any economy. In Nigeria, energy consumption has been skewed towards household use, and below thresholds for sector-driven growth. The article updates, in time and methodology, those studies highlighting the significance of energy use for economic growth, using the Bound test and the Auto Regression Distributed Lag (ARDL) to establish the long- and short-run relationships between disaggregated energy consumption and economic growth in Nigeria from 1990 to 2016. The variables considered are real GDP, energy consumption decomposed into electricity and petroleum consumption, labour and capital. The findings show that, in the short and long run, petroleum consumption and labour have a significant positive relationship with GDP. Furthermore, the causality results show that feedback causation between economic growth and energy consumption as well as labour exists, while one-way causation runs from labour to economic growth. The study reco...
Emerald Publishers, 2021
Also see the literature on valued or devalued target groups hypothesis for instance Montreuil and... more Also see the literature on valued or devalued target groups hypothesis for instance Montreuil and Bourhis, 2001
The Nigerian labour market is fraught with high rate of unemployment and sluggish wage adjustment... more The Nigerian labour market is fraught with high rate of unemployment and sluggish wage adjustment, not explicitly determined by market forces. Wages respond sluggishly to inflation rate, worsening workers' welfare. These and other reasons create push effects for youth emigration from Nigeria. This paper provides empirical evidence on the labour market effects of emigration from Nigeria. A neoclassical migration theory that is similar to the Stolper-Samuelson factor price equalization outcome was employed, using generalized method of moments to estimate the coefficients. Results show emigration of highly skilled workers leads to increase in high and low skilled wage with the former preponderant. Implicitly, the two categories of labour are not complementary. Rising wages are accompanied by increase in unemployment. Emigration of low skilled workers increases low skill wage, decreases unemployment but has no wage effect on high skilled workers. Nigeria should retain highly skilled workers while channeling remittances to productive use. 3
Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the... more Poverty in Nigeria continues unabated despite huge inflow of remittances. Our result supports the argument that remittances can improve economic growth but can also worsen overall wellbeing. Reasons for this are, first, remittances beneficiaries in Nigeria are concentrated in the middle income class with high propensity to consume. Second, due to high propensity to consume, consumption triggers good prices in such a way as to worsen the purchasing power of the poor. Third, institutions are weak and the poor do not benefit from weak institution. Thus good quality institutions should be encouraged while ostentatious spending should be discouraged.
Conference Presentations by Omolola S Olarinde
This paper benefits from country specific data on migration to examine its effect on Nigeria's hu... more This paper benefits from country specific data on migration to examine its effect on Nigeria's human capital formation and economic growth. It specified an equation predicated on the New Economics of Labour Migration (NELM) considering migration probabilities as an incentive to build additional skills. The model established the effect of migration, cost of acquiring additional skills and other control variables (population and access to education) on human capital formation. An exogenous growth model captured the effects of migration, human capital formation, public spending on education, remittances and access to education on economic growth. Various regression analysis were applied to a distributed lag specification covering the period 1980 to 2011. Long run relationship among the variables was established employing the Johansen cointegration technique. Migration stock impacted positively on HCF. All the variables were significant at the 1.0% level except lagged variables, which were significant at the 10.0% level. There was a positive relationship between HCF and cost of acquiring additional skills, implying that additional expenses on skill formation yielded positive returns. Human capital increased in the opposite direction as population, implying strained resources from population pressures. Access to education had no significant impact on HCF. Further, the exogenous model revealed that economic growth responded positively to migration suggesting a net gain in output resulting from migration. HCF was also associated with economic growth although not statistically significant.
Reeling from the impacts of the global financial meltdown, a number of countries have started exp... more Reeling from the impacts of the global financial meltdown, a number of countries have started exploring the possibilities inherent in alternative energy sources to widen the national financial income base, avoid the higher cost of conventional oil production, combat energy insecurity, reduce dependence on fossil fuel and to encourage investments in renewable energy sources (RES). Investments in biofuel production have therefore increased in geometric progressions globally within the last decade. In 2010, worldwide biofuel production reached 105 billion liters, up 17% from 2009 and biofuels provided 2.7% of the world's fuels for road transport, a contribution largely made up of ethanol and biodiesel. Despite this geometric rise in biofuel production, Africa currently accounts for less than 1% of biofuel production. This is particularly alarming considering Africa's strengths and comparative advantage to become major exporters and players in the biofuel markets. African countries with large arable land, subtropical and favorable agro-conditions, low cost of biofuel production per litre and high profitability prospects undoubtedly have comparative advantage in the production of biofuels. Despite this, biofuel production within Sub Saharan Africa (SSA) is often hindered by protectionist laws, agreements and policies. Certain laws, agreements, governmental regulations and policies that limit the scale of production, frustrate technology transfer, impose trade restrictions and also place certain limits on biofuel production processes often mean that the potentials for biofuel production and production in Nigeria and sub-Saharan Africa are not optimally utilized. This paper discusses the impacts of legal barriers and trade restrictions on biofuel production and exportation from Nigeria. It argues that the opportunities for exporting biofuels from Nigeria would be better strengthened, while the rate of investment and internal rate of return to biofuel production would be better improved if certain legal and regulatory barriers to investment were removed. While not calling for zero regulation, it discusses why and how Nigeria may improve its comparative advantage in the biofuel export market by establishing domestic regulatory incentives that reduce barriers to trade, and attract international investments and interests in Nigeria's biofuel potentials.
Books by Omolola S Olarinde
in Obiezu & Odimegwu: Nigerian Migration, 2021
Emerald Publishers , 2021
Also see the literature on valued or devalued target groups hypothesis for instance Montreuil and... more Also see the literature on valued or devalued target groups hypothesis for instance Montreuil and Bourhis, 2001
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Papers by Omolola S Olarinde
Conference Presentations by Omolola S Olarinde
Books by Omolola S Olarinde