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JAFEJournal of Applied Financial Econometrics

Latest Articles :- Vol: (4) (2) (Year:2023)

EFFECT OF GOVERNMENT FINANCING ON AGRICULTURE VALUE ADDED IN NIGERIA

BY:   Efanga, Udeme Okon, Enang Ekwere Raymond and I. S. Jackson
Journal of Applied Financial Econometrics, Year:2023, Vol.4 (2), PP.115-132
Received:16 July 2023   |   Revised:19 August 2023   |   Accepted:26 August 2023   |   Publication:28 December 2023
DOI: https://DOI:10.47509/JAFE.2023.v04i02.01

This study analyzed the effect of government financing on agriculture value added in Nigeria between 2003 and 2022 using annual time series data sourced from Central Bank of Nigeria Statistical Bulletin and World Bank Development. Agricultural value added was used as the dependent variable while government financing on agriculture was used as the independent variable. Auto Regressive Distributed Lag (ARDL) Model was used to analyze data. The results of ARDL Model revealed that government financing on agricultural sector had a significant negative relationship with agricultural value added in Nigeria. The researcher therefore recommended that government should fund or support intending agricultural investors and producers through financial initiatives that would help in developing value added enterprises/businesses.

Keywords: government financing, agricultural value added, agricultural financing, agricultural sector, Auto regressive distributed lag model

Efanga, Udeme Okon, Enang Ekwere Raymond & I.S. Jackson (2023). Effect of Government Financing on Agriculture Value Added in Nigeria. Journal of Applied Financial Econometrics, Vol. 4, No. 2, pp. 115-132. https://
DOI:10.47509/
JAFE.2023.v04i02.01

ECONOMIC GROWTH AND CARBON EMISSIONS NEXUS: EVIDENCE FROM NIGERIA

BY:   Paul A. Orebiyi, Ubong E. Effiong and Joy Udeme
Journal of Applied Financial Econometrics, Year:2023, Vol.4 (2), PP.133-163
Received:22 July 2023   |   Revised:24 August 2023   |   Accepted:10 September 2023   |   Publication:28 December 2023
DOI: https://DOI:10.47509/JAFE.2023.v04i02.02

With the rising climate change concerns, there have been contrasting arguments regarding the effect of economic activities on carbon emissions in a nation. The study adopted the econometric models, the Pairwise Granger Causality test, and the Autoregressive Distributed Lag model (ARDL). The ARDL bounds test for cointegration indicated that carbon emission and economic growth in Nigeria have a long-run relationship. Similarly, the long-run coefficients indicated that asides Energy Use, all independent variables have a significant effect on carbon emissions in the long run. However, the squared GDP and population growth have positive effect on carbon emissions, while GDP, trade openness, financial sector development and urbanization have negative effect on carbon emissions in the long run. Furthermore, the ECM coefficient was negative and statistically significant, meaning that in the event of any economic disequilibrium, the system will correct itself in the short run at a rate of 76 percent every quarter, eventually attaining long-term equilibrium. For the Granger Causality, result indicated that a significant bidirectional relationship exists between carbon emission and economic growth in Nigeria. It was recommended that a balance be established between carbon emission and economic growth in Nigeria by ensuring that unproductive activities that results in carbon emission are curtailed.

Keywords: Carbon intensity, Environmental Kuznets Curve, Clean technologies, Energy use.

Paul A. Orebiyi, Ubong E. Effiong & Joy Udeme (2023). Economic Growth and Carbon Emissions Nexus: Evidence from Nigeria. Journal of Applied Financial Econometrics, Vol. 4, No. 2, pp. 133-163. https://
DOI:10.47509/
JAFE.2023.v04i02.02

THE EFFECTS OF SAVINGS MOBILIZATION EFFORTS OF NIGERIAN MONEY MARKET ON ECONOMIC GROWTH

BY:   Osamo Caleb Kehinde, Odi Nwankwo and Awogbemi Clement Adeyeye
Journal of Applied Financial Econometrics, Year:2023, Vol.4 (2), PP.165-192
Received:16 September 2023   |   Revised:11 October 2023   |   Accepted:19 October 2023   |   Publication:28 December 2023
DOI: https://DOI:10.47509/JAFE.2023.v04i02.03

Economic growth is a function of some productive efforts among which savings mobilizations is considered very vital. This study examines saving mobilization efforts of the Nigerian money market and the effects on economic growth during the year 2001-2022.Vested with the objectives to investigate the effect of banking density, savings rates and money supply on economic growth. The study relies on time series data sourced from the publication of the Central Bank of Nigeria. Gross Domestic Product Growth Rate (GDPGR) was adopted as dependent variable, while Banking Density (BD), Savings Rates (SR) and Money Supply (MS) were the independent variables. Augmented Dickey Fuller (ADF) unit root test was employed, to test the stationarity. The Auto Regressive Distributive Lag (ADRL) was used to ascertain the relationship between the variables alongside Vector Error Correction Model (VCM). Post estimation diagnostic tools used include Breuch- Godfrey serial correlation LM test and the CUSUM test for stability. From the ARDL, ????-coefficient and the associated probabilities were adopted to determine the extent and direction of relationship on economic growth. Data were tested at 5% level of significance, it was discovered that banking density and savings rates affected economic growth positively but with insignificant effects, while money supply affected economic growth negatively with insignificant effect. The study therefore recommends amongst others, that stakeholders, be directed towards entrenching higher banking density as opposed to banking desert, and that money supply should be made dynamic in accordance with economic realities.

Keywords: Banking Density, Economic Growth, Money Market and Savings Mobilization Efforts, Auto Regressive Distributive  Lag

Osamo Caleb Kehinde, Odi Nwankwo & Awogbemi Clement Adeyeye (2023). The Effects of Savings Mobilization Efforts of Nigerian Money Market on Economic Growth. Journal of Applied Financial Econometrics, Vol. 4, No. 2, pp. 165-192. https://DOI:10.47509/
JAFE.2023.v04i02.03

GOVERNANCE INSTITUTIONS AND FOREIGN AID EFFECTIVENESS IN NIGERIA

BY:   Stanley Uche Akachukwu and Festus Ndidi Osagu
Journal of Applied Financial Econometrics, Year:2023, Vol.4 (2), PP.193-212
Received:26 September 2023   |   Revised:21 October 2023   |   Accepted:29 October 2023   |   Publication:28 December 2023
DOI: https://DOI:10.47509/JAFE.2023.v04i02.04

Foreign aid is a vital source of finance for developing countries. Existing studies have investigated the effect of foreign aid on Gross Domestic Product (GDP) of countries, however, little attention has been devoted to investigating the impact of governance institutions on foreign aid effectiveness in Nigeria. This study, therefore, investigated the effects of governance institutions on foreign aid effectiveness in Nigeria using annual data spanning 1981 to 2020. Two Stage Least Square (2SLS) and General Method of Moments (GMM) models were used as the estimation techniques. The study found that governance institution retards foreign aid effectiveness in Nigeria in both the 2SLS and GMM. The result also showed that there exists an improvement in foreign aid effectiveness during the democratic regime than the military regime in Nigeria. The study concluded that governance institution in Nigeria is weak and negatively affect the effectiveness of foreign aid. The paper recommends requisite institutional reform and strengthening of the governing process to enhance the effective use of ODA in Nigeria.

Keywords: Foreign aid effectiveness, Governance institutions, Economic growth

Stanley Uche Akachukwu & Festus Ndidi Osagu (2023). Governance Institutions and Foreign Aid Effectiveness in Nigeria. Journal of Applied Financial Econometrics, Vol. 4, No. 2, pp. 193-212. https://
DOI:10.47509/
JAFE.2023.v04i02.04

INNOVATION CAPABILITIES AND PERFORMANCE OF FOOD PROCESSING COMPANIES IN NIGERIA

BY:   Emmanuel Lubem Asenge and Philip Dewua
Journal of Applied Financial Econometrics, Year:2023, Vol.4 (2), PP.213-224
Received:16 October 2023   |   Revised:20 November 2023   |   Accepted:06 December 2023   |   Publication:28 December 2023
DOI: https://DOI:10.47509/JAFE.2023.v04i02.05

Innovation capabilities are key triggers of competitiveness and performance of firms across industries. The research explores the effect of innovation capabilities on the performance of Food Processing Companies in Nigeria. The study employed a cross-sectional survey research design. The target population consists of 406 lower management, middle-level management and top management staff of fifteen (15) food processing companies. A census sampling approach was adopted to sample the entire population. A pilot study was conducted to test the validity and reliability of the survey questionnaire. The primary data collected from the respondents through self-administered questionnaire were processed and analysed with the aid of the Statistical Package for Social Sciences (SPSS) version 25. The Pearson’s Product Moment Correlation was performed to ascertain the relationship between the variables while regression analsysis was utilized to determine the effect of the predictor variables on the dependent variable. The outcomes of the correlation analysis indicated that positive relationship between the study variables. The results of tested hypotheses revealed that product innovation capability, marketing innovation capability and technological innovation capability had positive and significant effect on the performance of the firms. The study concluded that innovation capabilities implemented by firm help to foster performance of firms. It recommended amongst others that management of the companies should constantly adopt new technologies in the manufacture of new products to meet customer needs and expectations.

Keywords: Innovation Capabilities, Product Innovation Capability, Marketing Innovation Capability, Technological Innovation Capability, Firm Performance

Emmanuel Lubem Asenge & Philip Dewua (2023). Innovation Capabilities and Performance of Food Processing Companies in Nigeria. Journal of Applied Financial Econometrics, Vol. 4, No.
2, pp. 213-224. https://
DOI:10.47509/
JAFE.2023.v04i02.05

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