Papers by Okeke Izuchukwu Chetachukwu
European Journal of Business and Management, 2013
It is an obvious fact that Budget Deficit has become a recurring decimal in the Nigeria's economy... more It is an obvious fact that Budget Deficit has become a recurring decimal in the Nigeria's economy. Nigeria's budget has recorded up to thirty-nine years of fiscal deficit without really considering the impact it will have in the rate of investment among the private sector. The bone of the contention is on where we can get the money to cover the difference between expenditure and revenue. Will it be borrowed from external forces or will it be raised internally through the increase in tax rate or the sale of fiscal instruments? It is in the light of this that this study emerged. Hence, the study shows the crowding out effect of budget deficits on private investments in Nigeria's economy. It evaluates private investment and budget deficits by adopting an analytical framework that employs the ordinary least squares(OLS) and Granger Causality test. The analysis confirms that budget deficits crowds out private investments and that private investments granger cause budget deficit with feedback. Following the findings, it was recommended that stakeholders should reduce recurrent expenditure and increase its capital expenditure in order to encourage and make conducive environment for private investment to thrive which will ensure economic growth. The financing of budget deficits should be done through money creation, since over the years according to McConnell and Brue (2003), the expansionary effect of fiscal policy is greater when the budget deficit is financed through money creation rather than through borrowing.
International Journal of Economics, Business and Management Research
Financial constraint has been identified as one of the main impediments that keep the poor from g... more Financial constraint has been identified as one of the main impediments that keep the poor from getting foothold on the development ladder. Financial development, measured by the amount of credit granted to the private sector by the bank sector helps in bridging the gap between the rich and the poor. The paper investigates the role of financial development on remittance-investment nexus in Nigeria. Annual secondary data covering the periods of 1981Q1 to 2020Q4, and were obtained from the World Development Indicators (WDI) published by the World Bank and Statistical Bulletin published by the Central Bank of Nigeria (CBN). Data collected were analyzed using Philips-Perron test unit root test, Augmented Dickey-Fuller unit root test, and Autoregressive Distributed lag model. Results obtained indicate that financial deepening dampens the effect of remittances on private domestic investment. The unit root test carried out revealed that only private domestic investment is integrated of order (0) while international remittances and financial deepening are integrated of order (1). The study recommends that government should implement policies that will encourage the flow of remittances into Nigeria, and adopt the agreement of World Remittance Index that the cost of remitting money in Sub-Saharan Africa should not be more than 5% of the amount.
European Journal of Business and Management, 2013
It is an obvious fact that Budget Deficit has become a recurring decimal in the Nigeria’s economy... more It is an obvious fact that Budget Deficit has become a recurring decimal in the Nigeria’s economy. Nigeria’s budget has recorded up to thirty - nine years of fiscal deficit without really considering the impact it will have in the rate of investment among the private sector. The bone of the contention is on where we can get the money to cover the difference between expenditure and revenue. Will it be borrowed from external forces or will it be raised internally through the increase in tax rate or the sale of fiscal instruments? It is in the light of this that this study emerged. Hence, the study shows the crowding out effect of budget deficits on private investments in Nigeria’s economy. It evaluates private investment and budget deficits by adopting an analytical framework that employs the ordinary least squares(OLS) and Granger Causality test. The analysis confirms that budget deficits crowds out private investments and that private investments granger cause budget deficit with feedback. Following the findings, it was recommended that stakeholders should reduce recurrent expenditure and increase its capital expenditure in order to encourage and make conducive environment for private investment to thrive which will ensure economic growth. The financing of budget deficits should be done through money creation, since over the years according to McConnell and Brue (2003), the expansionary effect of fiscal policy is greater when the budget deficit is financed through money creation rather than through borrowing.
Journal of Economics and Sustainable Development, 2021
Despite the implementation of stabilization measures during the present recession in Nigeria, une... more Despite the implementation of stabilization measures during the present recession in Nigeria, unemployment has assumed an alarming dimension and a crisis proportion with millions of able-bodied persons who are to accept jobs at the prevailing wage rate but are unable to find placements. Unemployment can be reduced in developing countries through developmental projects but this can be achieved due to lack of finance. Sequel to that, remittance inflow serves as finance for investment purposes. This study focuses on the impact of international migrant remittances on unemployment rate in Nigeria bearing in mind that reducing the rate of unemployment is one of the macroeconomic objectives of every country. An unemployment rate model was formulated and the unit root test was first applied to the data set. The time series were stationary and the two-stage least squares (2SLS) method was used to identify the impact of remittances on unemployment rate in Nigeria. Findings reveal that international remittances affect unemployment negatively and there exists a unidirectional causality between international migrant remittances and unemployment without feedback. The study recommends that the government and other stakeholder should map out programmes that will sensitize majority of the Nigerian populace on the benefit of investing remittance money so as to become entrepreneurs, create job opportunities and become employers of labour.
International Journal of Economics, Business and Management Research, 2022
Financial constraint has been identified as one of the main impediments that keep the poor from g... more Financial constraint has been identified as one of the main impediments that keep the poor from getting foothold on the development ladder. Financial development, measured by the amount of credit granted to the private sector by the bank sector helps in bridging the gap between the rich and the poor. The paper investigates the role of financial development on remittance-investment nexus in Nigeria. Annual secondary data covering the periods of 1981Q1 to 2020Q4, and were obtained from the World Development Indicators (WDI) published by the World Bank and Statistical Bulletin published by the Central Bank of Nigeria (CBN). Data collected were analyzed using Philips-Perron test unit root test, Augmented Dickey-Fuller unit root test, and Autoregressive Distributed lag model. Results obtained indicate that financial deepening dampens the effect of remittances on private domestic investment. The unit root test carried out revealed that only private domestic investment is integrated of order (0) while international remittances and financial deepening are integrated of order (1). The study recommends that government should implement policies that will encourage the flow of remittances into Nigeria, and adopt the agreement of World Remittance Index that the cost of remitting money in Sub-Saharan Africa should not be more than 5% of the amount.
Remittance is one of the key locomotives of economic growth and poverty reduction in developing c... more Remittance is one of the key locomotives of economic growth and poverty reduction in developing countries because it serves as development finance needed for investment purposes. This study sheds new light on this question by examining the impact of remittances on private investment in Nigeria. Data on remittance inflow in Nigeria was retrieved from World Development indicator. Error correction and Ordinary least squares is applied for this purpose. The result reveals that remittances increase the rate of private investment in Nigeria and the previous investment is a determinant of the current investment. It is therefore recommended amongst others remittance-receiving households should be encouraged to invest remittances in small and medium scale enterprises rather than use it for the consumption of goods and services.
This study has examined the impact of International Development Association (IDA) on the Nigerian... more This study has examined the impact of International Development Association (IDA) on the Nigerian economy for the period 1986 to 2016. The study used unit root test to determine the stationary state of the variables using the Augmented Dickey-Fuller Test. It also employs the Granger causality procedure, Johansen Co-integration and Error Correction Model (ECM) statistical techniques to establish both the direction of causality, short-run and long run dynamic relationship between the dependent and independent variables. The findings indicate that official development assistance increases the rate of economic growth of Nigerian; there is a unidirectional causal relationship between economic growth and official development assistance, i.e. the changes in the official development assistance are caused by the changes in economic growth and again, there exists a long run equilibrium relationship between official development assistance and economic growth. The study submits that the use of ...
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Remittance is one of the key locomotives of economic growth and poverty reduction in developing c... more Remittance is one of the key locomotives of economic growth and poverty reduction in developing countries because it serves as development finance needed for investment purposes. This study sheds new light on this question by examining the impact of remittances on private investment in Nigeria. Data on remittance inflow in Nigeria was retrieved from World Development indicator. Error correction and Ordinary least squares is applied for this purpose. The result reveals that remittances increase the rate of private investment in Nigeria and the previous investment is a determinant of the current investment. It is therefore recommended amongst others remittance-receiving households should be encouraged to invest remittances in small and medium scale enterprises rather than use it for the consumption of goods and services.
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Papers by Okeke Izuchukwu Chetachukwu