Nigeria economy gdp, inflation, cpi and interest rate. The ergp sets the ambitious target of 7 percent real gdp growth by 2020. In the fourth quarter of 20 the gdpin nigeria increased to 7. The scope of the study covers fiscal policy and economic growth in nigeria from 19802012. In recent years, all her efforts to grow the economy, nigerias rate of economic growth has remained very volatile and sluggish. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. Infrastructure development and economic growth nexus in nigeria.
First, though voluminous works have been conducted on economic freedom and economic growth with foreign direct investment as an intervening variable, we are. Nigeria gdp annual growth rate 19822019 data 20202022. This study therefore examines the major economic growth determinants as well as the direction of causality that exists between economic growth and some selected economic growth indicators in nigeria, employing the johansen cointegration and. Nigeria with the much needed capital for investment which improved economic growth. The methodology employed in this study is the cointegration and granger causality test. Their result revealed that foreign direct investment had significant impact on economic growth in nigeria. Population and economic growth in developing countries minh quang dao professor of economics, eastern illinois university, 600 e. But the authors are not aware of an y study which examines the link between exchange rate regimes and eco nomic gro wth in nigeria in. Ayashagba and abachi 2002 investigate on the effects of foreign direct investment on economic growth from 1980 to 1997. A multivariate regression approach was employed to estimate augmented growth models. Nigerian population growth and its implications for economic development. Investment and economic growth in nigeria abdulmumini baba alfa tukur garba, ph.
Bloom and canning 2001 are among the few who explore the effect of the demographic transition on economic growth. The the economy slowed sharply, as annual real gdp recovery was in part due to a sharp recovery in the. Transport infrastructure and economic growth in nigeria. Nigerian population growth and its implications for. Demographers estimated the population to be 91,178,000 in 1985. Determinants of economic growth in nigeria central bank of nigeria. Failure will result in the country recording drastic decline in gdp in the years to come, due to lack of infrastructure to support growth demands. However, the government spending on infrastructure in nigeria seems to be a waste of scarce resources and to the detriment o f the taxpayers because the growth in the econom y does not physically.
Development bank, in order to sustain nigeria s current economic growth of 6% annum, nigeria has to do more in the area of infrastructure development. Umoh introduction this article overviews the growth and development of the nigerian economy from inde pendence to present times. This is initially driven by the oil sector and then increasingly by strong non oil sector growth agriculture, manufacturing, and services. Pdf the impact of exchange rate regimes on economic growth.
Inflation and economic growth in nigeria omoke journal of. Wolderafeal2009 kenya bidirectional causality between financial development and economic growth. In nigeria under investment in infrastructural development could be a bane to her vision of becoming a top 20 economy by the year 2020. The economic recovery and growth plan is a reform strategy that seeks to be comprehensive in addressing the countrys challenges. Underminding it infrastructure is underminding the growth and development of nigerian economy. The main objective is to analysis how various components of fiscal policy have contributed to the growth rate of the nigerian economy. Time series data was used and sourced from the cbn statistical bulletin and annual reports. Increase in savings leads to increase in capital formation and production activities that will lead to employment creation and reduce external borrowing of government. In 2018, nigeria s real gross domestic product increased by around 1. Nigeria will be recalculating its gdpin 2014 to reflect structural changes in the economy. The study examines the macroeconomics determinants of economic growth in nigeria measured by real gross domestic product rgdp. A multivariate approach article pdf available january 2012 with 1,556 reads how we measure reads.
The population of nigeria is growing at a rate of 3. The remaining part of the paper is structured as follows. The contribution of infrastructure to nigerias economic. Methodology in specifying the institutions, infrastructure and economic growth relationship in nigeria, the study adopts the specification from a study of esfahani and ramirez 2003 for developed countries. Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. The importance, how to, effect causes relationship. A related myth is that nigerias economic growth is unstable, with large and unpredictable shifts in performance from year to year. The conduct of the analysis is limited to the availability of data fro m 197475201415 of the fiscal. The key issue of why high rates of economic growth in recent years have not been translated in urban settings into real improvements in economic opportunity employment. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic.
Despite her economic growth over the years, this has not translated to economic development due. Pdf infrastructural development and economic growth in. Pdf government spending on infrastructure and economic. Ezeogidi education and global economy, 19602014 failed to sustain this and other agricultural inclined legacies. Pdf the impact of road transportation infrastructure on. Nigerian population growth and its implications for economic. Gdp is the sum of gross value added by all resident producers in the economy plus any product. The research material available to the researcher is insufficient, thereby limiting the study. The nigerias economic recovery and growth plan ergp for. This page provides nigeria gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. Nigerias economic growth is largely driven by the capitalintensive oil sector which continues to drive the economy. This is because it focuses on evaluating the impact of federal government expenditure on economic growth in nigeria.
The collapse in crude prices may hinder domestic production, battering fx and fiscal revenues and adding pressure to the countryas international reserves and the currency in turn. Government expenditure and economic growth in nigeria. The international monetary fund imf has cut nigerias gross domestic product gdp growth drastically, from the projected 2. In view of the financial intermediation roles of deposit money banks, the paper supports the ongoing efforts of the central bank of nigeria cbn in promoting a. Over the last 5 years, nigerias gross domestic product gdp growth averaged 6. From the result, it is clear that infrastructure is an integral part of nigeria economic growth. The stationarity of the variables were tested using. Sectoral contribution to nigerias gross domestic product. Section 4 explains the theoretical framework while. The statistic shows the growth in real gdp in nigeria from 2014 to 2018, with projections up until 2024. The quest for economic growth and development compelled nigeria to acquire external debt. Nigeria has seen remarkable economic growth in recent years, linked to a potentially transformative urbanisation process, and based on largescale demographic and social change.
The impact of road transportation infrastructure on economic growth in nigeria article pdf available april 2015 with 2,308 reads how we measure reads. Though nigeria real gdp growth fluctuated substantially in recent years, it tended to decrease through 1999 2018 period ending at 1. An overview of the nigerian economic growth and development. Apr 28, 2020 nigeria economic growth after only gradually recovering from the 2016 recession, the economy is set to contract again this year. Findings from the study show that in the three national development plans in nigeria, road transportation system has been given more priority followed by water and air. A mutual correlation exists between infrastructural development and economic growth in nigeria.
But it will build up trade surpluses if exports exceed imports. But the authors are not aware of an y study which examines the link between exchange rate regimes and eco nomic gro wth. Federal government recurrent expenditure have no significant effect on economic growth in nigeria. Capital accumulation and economic growth in nigeria. This paper examines the causal relationship between globalization and economic growth in nigeria from 1981 to 2012. Economic growth and the balanceofpayments constraint. Economic development in nigeria, although has been rocked back and forth by various political, sociocultural, financial and infrastructural setbacks, the economic development of a country like nigeria cant be said to have totally been where it used to be, or to have back tracked as some people insinuate. Infrastructure development and economic growth nexus in. In this study, two models are specified, and after applying the substitution method reduce form equation. Pdf public expenditure and economic growth in nigeria. It is expected to increase by 4060% and will then become the largest economy in africa. Gdp is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any.
At a 2day nigeria meeting organized by the overseas development institute, london, 1617 june 2004 contact. Nigeria gross domestic product gdp growth rate 2024. It was found that the local government authority controls about 67% of the total road network in nigeria. There have been several studies that have investigated the relationship that exist between infrastructure development and economic growth. Nigerias economic recovery defining the path for economic growth. The impact of exchange rate regimes on economic growth in. Despite her economic growth over the years, this has not translated to economic development due to lack of infrastructure, high poverty rate, unemployment etc. Nigeria country profile growth and development economics. Their results reveal that government total capital expenditure, total. Abu badr and abu qarn 2008 egypt bidirectional causality from measures of financial development employed. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. In recognition of the deep weaknesses of the nigerias economy and the potential for further weakening, the federal government has developed an economic recovery and growth plan ergp for the period 20172020 the ergp lays out the governments strategy for achieving the governments. Augmented dickeyfuller adf test was used for the unit root test and johansens cointegration test was also conducted to. Why nigerias future is brighter than you think world.
This study investigated the effect of fiscal policy on economic growth in nigeria. The findings proved that, there was a long run and positive relationship between finance and economic growth. Economic growth in nigeria edame greg ekpung public sector economic unit, department of economics, university of calabar, cross river state, calabar, nigeria abstract this study critically analyze the trends analysis of public expenditure on infrastructure and economic growth in nigeria, from 1970 to 2010. The effect of fiscal policy on economic growth in nigeria. The paper considered transport infrastructure and economic growth in nigeria. This paper examines the economic effects of the demographic transition in developing countries. This paper has attempted infrastructural development and its effect on economic growth. However, the vital role of the capital market in economic growth and development has not been comprehensively investigated thereby creating a research gap in this area.
Infrastructural development and economic growth in nigeria. They argue that it is possible that the interaction of economic growth with population dynamics can result in a poverty trap. Consumer price index cpi was used as a proxy for inflation and the gdp. Ii, issue 4 july 20 appropriate policies, the relationship between government spending and economic growth can be maintained in the positive direction. Nigeria gdp growth rate 20102019 data 20202022 forecast. In fact, as nigeria has diversified its economy and detached publicspending plans from current oil prices part of a 2004 budget reform, it has become increasingly stable, both economically and fiscally. They used disaggregated analysis in an attempt to unravel the impact of government expenditure on economic growth. This study uses secondary data which were obtained from the statistical bulletin of the central bank of nigeria cbn covering the period from 1985 to. The result revealed a negative, but nonsignificant relationship between gdp and stock market capitalization. We used time series data obtained from cbn for a period of 26 years that is 1986 to 2012. It was found out from the study of 73 countries over.
A region or a country can go on exporting as much as it likes. However, the results emanating from these studies have been inconclusive. Nigeria economic growth after only gradually recovering from the 2016 recession, the economy is set to contract again this year. The study has shown that infrastructure is an intermediate goods and service for the real sector and a finished goods and service for consumers. Impact of private sector credit on economic growth in nigeria. Government spending and economic growth in nigeria. This study is undertaken to examine the contribution of the capital market in. Section 2 discusses infrastructure finance and growth in nigeria. The average growth of this sector was about 8% comparable to 0. Get free research paper on infrastructural spending and economic growth in nigeria.
Macroeconomic determinants of economic growth in nigeria. Determinants of economic growth in nigeria kazeem b. Annual percentage growth rate of gdp at market prices based on constant local currency. Similarly, 19 examined the relationship between finance and economic growth in nigeria from 19752008 and employed the bound test autoregressive distributed lag ardl approach. Infrastructural development, economic growth an d poverty in nigeria sahel analyst. The impact of poor infrastructural development on nigeria education and global economy, 19602014 the impact of poor infrastructural development on nigeria cynado c. In the cause of the study, there are some factors which limited the scope of the study. Capital accumulation and economic growth in nigeria endogenous growth approach doi.
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