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Health expenditure and growth dynamics in the SADC region: evidence from non-stationary panel data with cross section dependence and unobserved heterogeneity
(Int J Health Econ Manag, 2018) Eugene Kouassi; Oluyele Akinkugbe; Noni Oratile Kutlo; J. M. Bosson Brou
This paper investigates the long run relationship between health care expenditure
and economic growth, using panel data for 14 Southern African Development Community
(SADC) member countries over the period 1995–2012. The non-stationarity and cointegration
properties between health expenditure per capita and GDP per capita were examined,
controlling for cross section dependence and heterogeneity between countries. Our results
suggest that health expenditure and GDP per capita are non-stationary and cointegrated.
These findings seem to confirm the notion that health expenditure is non-discretionary—
health is a necessary good—in the SADC region. The estimated income elasticity is below
unity but higher than what was obtained for the OECD regional grouping. The policy implication
of our result is that adequate health care service provision should be a key objective
of governmental intervention in the SADC region.
Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries
(United Nations University, 2003) Akinkugbe Oluyele
The last decade or so has witnessed rather dramatic increases in the flow of foreign
direct investment (FDI) to the developing countries of the world. However, the balance
of evidence seems to point in one direction, the inflow has been uneven. Middle-income
developing countries have benefited from this upsurge at the expense of the
lower-income countries. In an attempt to explore the two complimentary issues involved
in FDI flows, we adopted the two-part econometric approach in which a Probit model
was first estimated in order to examine the binary issue of whether or not to locate FDI
in hitherto neglected developing countries. In the second step, a panel regression model
was employed to examine the factors that may explain the volume of FDI to further
allocate to existing FDI-receiving countries. Our findings reveal that a combination of
high per capita income, outward-orientation to international trade, a high level of
infrastructure development and a high rate of return on investment are the significant
decision parameters in the two-part aggregate investors’ behaviour analyses.
Macroeconomic indicators and capital market performance: Are the links sustainable?
(2020) Felicia O. Olokoyo; Abiola Babajide, Oyakhilome W. Ibhagui
Abstract: This paper examines the long-run impact of macroeconomic indicators
such as interest rate, foreign capital flows, exchange rate, GDP growth, inflation and
trade on stock market performance (market capitalization) in Nigeria. Using data
drawn from the World Development Indicators (WDI, 2018) and the Central Bank of
Nigeria (CBN) Statistical Bulletin 2018, the study employed the VECM analysis. The
results found suggest that 1) macroeconomic variables and stock market performance
are cointegrated and thus linked in the long run; 2) interest rate, inflation
and trade bear a negative relationship with stock market performance; and 3)
exchange rate, GDP growth rate and foreign capital flows are positively related to
stock market performance. Our results show that when there is a deviation from the
long-run relation between stock market performance and mafcroeconomic fundamentals,
it is primarily the stock market, interest rate and foreign capital flows that
adjust to ensure that the long-run link is restored, whereas exchange rate, GDP
growth, inflation and trade are weakly exogenous. We estimate that any disequilibrium
emanating from interest rate is more than fully corrected in one year, in the
oscillating convergence sense, while 29% and 5% of the disequilibrium from stock market and foreign capital flows are corrected in one year. A policy recommendation
that emerges from the study is the need to strengthen policies aimed at
improving the country’s macroeconomic environment. Specifically, this will involve
policies aimed at lowering interest rate, increasing foreign capital flows and
improving the country’s terms of trade.
Subjects: Economics; Finance; Corporate Finance; Investment & Securities
Financial Inclusion and Economic Growth in Nigeria
(International Journal of Economics and Financial Issues, 2015) Abiola A. Babajide; Folasade B. Adegboye; Alexander E. Omankhanlen
Financial development is not simply a result of economic growth; it is also the driver of economic growth. Financial inclusion (FI), a feature of
fi nancial development, is a process that marks improvement in quantity, quality, and effi ciency of fi nancial intermediary services. It generates local savings, which increase productive investments in local businesses. This paper investigated the impact of FI on economic growth in Nigeria. It aimed to highlight the determinants of FI and its impact on economic growth. Secondary data were sourced from world development indicators and ordinary least square regression model was used to analyze the data. The result shows that FI is a signifi cant determinant of the total factor of production, as well as capital per worker, which invariably determines the fi nal level of output in the economy. This study recommends that natural and economic resources should be adequately harnessed, as alternative means of revitalization and diversifi cation of Nigeria’s oil-dependent monocultural economy.
Knowledge transfer and innovation performance of small and medium enterprises (SMEs): An informal economy analysis
(Heliyon, 2020) Ayodotun Stephen Ibidunni; Aanuoluwa Ilerioluwa Kolawole; Maxwell Ayodele Olokundun; Mercy E. Ogbari
SME operators in the informal sector of developing economies have a significant influence on their nation's
economies through their involvement in international business relationships. However, the existing deficiency in
the literature to show empirical relationships between knowledge transfer, from these SMEs and their international
business partners, and innovation performance is a significant gap in the strategic management and international
business literature. Therefore, this paper explores the link between knowledge transfer and innovation
performance of informal economy SMEs that are involved in international business relationships. The study
included a survey of 370 owners-managers and managers of small and medium enterprises in Nigeria's informal
electronic market. Using Structural Equation Model (AMOS 22) this study shows that knowledge transfer dimensions,
such as R&D and social networking, have varying levels of impact on innovation performance of
informal sector SMEs. Knowledge transfer from training showed an inverse and insignificant relationship with
innovation performance. The study established implications and recommendations that will be useful for theory
and practice.