Browsing by Author "Adeniyi, O. A."

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A religious justification of the role of science in human reproduction
(The Department of Religious Studies, University of Ibadan, Ibadan, Nigeria., 2022-12) Gbadamosi, O. A.; Adeniyi, O. A.
Giving birth to children is very important in many African societies, because children are portrayed as evidence of fruitfulness and blessings from God. In fact, there is a saying that children are the gains of a marriage. Amid this huge burden and societal expectations, some couples are encumbered with this weight as a result of some medical challenges in the area of procreation. Scientific advancements have offered interventions to mitigate this problem, as is evident in other human endeavors, where scientific solutions have come to the rescue through a number of reproductive technologies. Extant literature on human reproductive technology have focused largely on the procedures and ethical perspectives with scant attention paid to it from a Christian religious perspective. This study therefore, explored a religious justification of the role of science in human reproduction. This was with a view to addressing the concerns that have been raised by varying adherents of religions and schools of thought regarding the ethics of reproductive technologies. The aim of the study was to answer questions on whether reproductive technologies contravene the natural way of human reproduction and whether they tamper with the supremacy of God. The paper concludes that there is no justifiable reason for rejecting the gift of knowledge of God to humanity through science in the area of human reproduction using St. Augustine’s Concept of Knowledge that all human knowledge comes from God.
An Empirical Re-examination of Exchange Rate-Trade Balance Nexus in Nigeria
(African Journal Online (AJOL), 2013) Oyinlola, M. A.; Omisakin, O. A.; Adeniyi, O. A.
The Nigerian exchange rate-trade balance nexus was re-examined. The long run relationship between these variables was explored using the Gregory-Hansen cointegration approach on a data sample between 1980:Q1 and 2010:Q4. Prior to this, three efficient integration tests that can overcome potentially severe finite sample power and size problems suffered by the standard methods were tactfully pursued for robustness. The short run impact analysis was done in the error correction framework. The analyses showed that exchange rate depreciation led to trade balance deterioration in both the short run and the long run. Thus, this study could not find support for J-curve in Nigeria. Some suggestions on the way forward were put forth.
Central Bank Communication and Monetary Policy Effectiveness: Evidence from Nigeria
(West African Monetary Institute, 2013) Adeniyi, O. A.; Ekor. E.; Saka, J.
The study examines the impact of central bank communication on monetary policy in Nigeria by applying the standard deviation measure of volatility and the vector autoregressive approach. The findings show that inflation and markets volatilities reduced during the period of improved central bank communication. The money market responded positively to central bank communication and reverted faster to equilibrium compared with the stock market which responded negatively and reverted slower to equilibrium. Central bank communication is also able to explain some variation in the money and stock markets. The policy implications of the findings include the need for the Central Bank of Nigeria to continue to improve on its communications strategy as this has helped reduce inflation and markets volatility. In addition, the interest rate channel of the transmission mechanism should be accorder greater priority compared to the asset channel as the money market reverted faster to equilibrium compared to the stock market in the event of a shock.
Does Governance Impact on the Foreign Direct Investment-Growth Nexus in Sub-Saharan Africa?
(Economics Faculty Zagreb, 2014) Ajide, K.; Adeniyi, O. A.; Raheem, I. D.
The central question this paper sought to tackle was “does the quality of institutions matter for the relationship between Foreign Direct Investment (FDI) and economic growth?” Using macroeconomic data on 27 Sub Saharan African (SSA) economies and six distinct measures of governance the findings showed that control of corruption, political stability and government effectiveness matter for the influence of FDI on economic growth in SSA. This key finding was found to be robust even in models where these three governance indicators were interacted with FDI. Furthermore, the results from threshold-type sample splitting showed that in the sample containing countries with a higher level of governance, the positive impact of FDI on growth has larger magnitude vis-à-vis the comparator group with poorer governance indicators. This significant threshold effects remained robust across specifications
Empirical Exposition of Monetary Policy under Fixed and Managed Float Exchange Rate Regime: Any Lesson for Nigeria
(Central bank of Nigeria, 2014) Egwaikhide, F. O.; Oyinlola, M. A.; Adeniyi, O. A.; Olanipekun, D. B.
This paper empirically investigated the relationship between monetary aggregates and the exchange rate under alternative exchange rate regimes in Nigeria. Using data spanning 1961 to 2013 to estimate vector auto-regressive (VAR) models, a number of findings ensued. One, the impulse response functions (IRFS) showed that monetary aggregates were responsive to exchange rate shocks. However, this effect was found to be closely linked with the underlying exchange rate regime. Two, the variance decompositions (VDs) indicated that exchange rate shocks had no significant weight as there was no impact recorded on inflation, interest rate and money supply after one year under the fixed regime. Third, the corresponding VDs under the flexible regime showed that the effect of exchange rate on the monetary aggregates was more significant, especially in the long-run. A key policy implication of the foregoing results was that domestic economic management policies should be proactively orchestrated to better align the objectives of exchange rate policy with broader macroeconomic goals.
Energy Consumption and Financial Development in Sub-Saharan Africa: A Panel Econometric Analysis
(Inderscience Enterprises LTD, 2013) Ajide. K.; Bekoe, W.; Yaqub, J.; Adeniyi, O. A.
This paper investigated the energy consumption-financial development linkage for Sub-Saharan Africa (SSA). Annual data for 26 countries spanning the period 1996 to 2009 was used to elicit answers on the questions of interest. This is the first attempt, as far as we are aware, at examining the linkage between shocks to and response of the energy and financial markets of SSA economies. Recent panel causality techniques are deployed to probe causal orderings both in the short- and long-run. The results suggest that regardless of the financial development measure, there is weak evidence for short-run causality. Contrariwise, there appears to be ample evidence in support of long-run causality particularly flowing from private sector credit as a share of GDP to total energy consumption. For electricity consumption, there is short-run and long-run causality from private sector credit to GDP ratio. In sum, these plausibly imply that a deeper financial system effectively allocates resources to the private sector enabling a scaling up in operations and by extension higher energy requirements.
Foreign Capital Flows, Financial Development and Growth in Sub-Saharan Africa
(Emerald Publishing Limited, 2015) Adeniyi, O. A.; Ajide, B.; Salisu, A.
This paper investigated how financial development influences the relationship between foreign direct investment (FDI) and economic growth in selected Sub-Saharan Africa (SSA) countries. This study considered three alternative measures of financial development (FD) and their impacts on the FDI-growth linkage. It also explored the possibility of nonlinearities in the tripartite relationships. The results showed a positive influence of FDI on economic growth. Financial system development also had growth-promoting impact in the presence of FDI flows. Interestingly, these findings remained robust when potential endogeneity was accounted for using a well known instrumental variable (IV) estimator. Digging deeper, the findings also supported the existence of non-linearities in the role of FD in the FDI-growth association. In policy terms, these SSA countries will reap more growth benefits from foreign capital flows especially if financial reforms are sustained.
Foreign Capital Flows, Financial Development and Growth in Sub-Saharan Africa
(Emerald Publishing Limited, 2015) Adeniyi, O. A.; Ajide, B.; Salisu, A.
This paper investigated how financial development influences the relationship between foreign direct investment (FDI) and economic growth in selected Sub-Saharan Africa (SSA) countries. This study considered three alternative measures of financial development (FD) and their impacts on the FDI-growth linkage. It also explored the possibility of nonlinearities in the tripartite relationships. The results showed a positive influence of FDI on economic growth. Financial system development also had growth-promoting impact in the presence of FDI flows. Interestingly, these findings remained robust when potential endogeneity was accounted for using a well known instrumental variable (IV) estimator. Digging deeper, the findings also supported the existence of non-linearities in the role of FD in the FDI-growth association. In policy terms, these SSA countries will reap more growth benefits from foreign capital flows especially if financial reforms are sustained.
Foreign Direct Investment, Economic Growth and Financial Sector Development in Small Open Developing Economies
(Elsevier B. V., 2012) Adeniyi, O. A.; Omisakin, O.; Egwaikhide, F. O.; Oyinlola, M. A.
The present paper examines the causal linkage between foreign direct investment (FDI) and economic growth - in Cote d'Ivoire, Gambia, Ghana, Nigeria and Sierra Leone - with financial development accounted for over the period 1970-2005 within a trivariate framework which applies Granger causality tests in a vector error correction (VEC) setting. Three alternative measures of financial sector development - total liquid liabilities, total banking sector credit and credit to the private sector - were employed to capture different ramifications of financial intermediation. Our results support the view that the extent of financial sophistication matters for the benefits of foreign direct investment to register on economic growth in Ghana, Gambia and Sierra Leone depending on the financial indicator used. Nigeria, on the other hand, displays no evidence of any short- or long-run causal flow from FDI to growth with financial deepening accompanying. In sum, therefore, what should be of utmost urgency is concerted efforts in most of these countries, which have typically been in the throes of economic reforms, to upgrade their financial structure to better position them to reap the desirable growth promoting effects of FDI flows.
Impact of Oil Price Shocks on the Macroeconomy: Evidence from Nigeria.
(West African Institute for Financial and Economic Management (WAIFEM),, 2014) Adeniyi, O. A.; Egwaikhide, F. O.; Oyinlola, M. A.
The role of oil price shocks in the movements of key macroeconomic fundamentals such as output and inflation has been the focal point of many empirical enquiries. However, earlier studies on the oil price- output-inflation relationship in Nigeria hardly took an explicit account of potential non-linearities. This study, therefore, investigated the impact of oil price shocks on output and inflation in Nigeria between 1970 and 2006. A macroeconometric model which captured both the direct and indirect relationships between oil price shocks, output and inflation, was employed. Three alternative measures of oil price shocks namely linear, asymmetric and volatility were considered. The behavioural equations were estimated using the three-stage-least-squares technique and a general-to specific procedure was used to minimise the loss of valuable information. The linear benchmark model showed that the effect of oil price shocks on inflation was moderately important, while the effect on output was not significant. Specifically, in response to a doubling of oil price, output rose by 0.20% and it resulted in a 0.25% decline in inflation. The results of the asymmetric model indicated that a 100% increase in oil price would cause output to rise by 0.57%, but it would decline by only 0.13% following an oil price reduction of the same order of magnitude. The volatility measure showed that doubling the oil price would raise output by 0.45% and inflation would increase by 0.15%. The estimated results suggested that oil price shocks had trifling impact on output, while it appeared to have slight effect on inflation. This implied that the enclave nature of the oil sector and its weak linkages with the rest of the economy as well as better management via sterilisation may have moderated the effect of oil price shocks on both output and inflation respectively.
Is There A Role for Governance in the Saving-Investment Nexus for Sub-Saharan Africa?
(Springer Science+Business Media, 2015) Raheem, I. D.; Ajide, K.; Adeniyi, O. A.
The study broke some yet to be explored ground in the literature on the Feldstein-Horioka (FH) puzzle. Precisely, it uncovered the role of institutions (particularly governance) in the saving-investment causal nexus using data on a panel of 37 sub-Saharan Africa countries, over the period spanning 1996 through 2010. Deploying a battery of panel estimators, the findings further lend support to earlier opinions on the bound of ranges of saving retention coefficients for the region. More specifically, the coefficients are -0.014, 0.200 and 0.21 in the ordinary least squares (OLS), fixed effects (FE) and random effects (RE) regressions, respectively. These estimates are largely synonymous to those reported for SSA in extant studies. Interestingly, considerable improvement was recorded in the saving coefficient from 0.20 to 0.361 when governance was interacted with saving. This concretely reinforces the useful role of governance in mobilizing saving for investment within these economies. Based on these findings, domestic resource mobilisation can be a veritable vehicle for plugging the substantial investment gap in these SSA economies. However, such policy thrust must be necessarily complemented by far-reaching governance reforms.
Monetary Policy Committee and Monetary Policy Conduct in Nigeria: A Preliminary Investigation
(Emerald Publishing Limited, 2014) Ekor, M.; Saka, J.; Adeniyi, O. A.
The study provides an incisive but preliminary investigation into the activities of the monetary policy committee of the central bank of Nigeria and the implications for monetary policy, using the standard deviation measure of volatility and the ordinary least square method. The findings show that the ‘internal’ members and majority of the ‘external’ members have different preferences as shown in the voting patterns. Also, there has been reduction in inflation, money and stock markets volatilities since the operations of the committee became more visible. Furthermore, there is no structural break in both the money and stock markets in the period when the central bank started releasing the personal statements and voting pattern of the committee members. The policy implication of these results is that the transparency with which the monetary policy committee has operated since 2011 has boosted policy credibility due to the reduction in markets volatility. Nevertheless, there is need for the individual committee members to be more visible to the public through different platforms as this will further improve the central bank’s communications strategy.
Natural Resource Abundance, Institutions and Economic Growth in Africa
(Inderscience Enterprises LTD, 2015) Oyinlola, M. A.; Adeniyi, O. A.; Raheem, I. D.
The study analysed the effect of institution on resource curse abundance-economic growth nexus using the system generalised method of moments. The empirical results refute the resource curse hypothesis in Africa. In addition, institutions have dampening effect on the nexus. This stems from the fact that the institutional development level of most African countries is weak. The study also found out that the resource curse hypothesis is not peculiar to oil wealth as indicated in the literature. Lastly, our results do not support the rentier effect as a possible channel of the hypothesis.
Oil Price Shocks and Economic Growth in Nigeria: Are Thresholds important?
(John Wiley & Sons Inc, 2011) Adeniyi, O. A.; Omisakin, O. A.; Oyinlola, M. A.
The impact of oil price shocks on the economy has occupied the attention of researchers for almost four decades. Majority of studies support the existence of a negative association, while some recent evidences seem to have popularised the view that outcomes are the artefacts of misspecified functional forms. This study, although similar in spirit to this popular opinion, is, however, distinct in a number of ways. Firstly, unlike most Nigeria-specific studies, this paper explores alternative measures of oil price shocks, which have been developed and used in the literature with a view to ascertaining the extent to which conclusions about the oil price-growth association depend on the definition of shocks adopted. More importantly, this, to the best of our knowledge, is a pioneer attempt at introducing threshold effects into the linkage between oil price shocks and output growth in Nigeria. The relatively recent regime-dependent multivariate threshold autoregressive model, together with the characteristic impulse response functions and forecast error variance decomposition, is adopted in this study. Using quarterly data spanning 1985–2008, a non-linear model of oil price shocks and economic growth is estimated. Our main results indicate that oil price shocks do not account for a significant proportion of Observed movements in macroeconomic aggregates. This pattern persists despite the introduction of threshold effects. This implied the enclave nature of Nigeria’s oil sector with weak linkages. Therefore, the need to spend oil revenue productively is imperative if favourable effect on real output growth is envisaged.
Oil Price Shocks and Economic Growth in Nigeria: Are Thresholds important?
(John Wiley & Sons Inc., 2011) Adeniyi, O. A.; Omisakin, O. A.; Oyinlola, M. A.
The impact of oil price shocks on the economy has occupied the attention of researchers for almost four decades. Majority of studies support the existence of a negative association, while some recent evidences seem to have popularised the view that outcomes are the artefacts of misspecified functional forms. This study, although similar in spirit to this popular opinion, is, however, distinct in a number of ways. Firstly, unlike most Nigeria-specific studies, this paper explores alternative measures of oil price shocks, which have been developed and used in the literature with a view to ascertaining the extent to which conclusions about the oil price-growth association depend on the definition of shocks adopted. More importantly, this, to the best of our knowledge, is a pioneer attempt at introducing threshold effects into the linkage between oil price shocks and output growth in Nigeria. The relatively recent regime-dependent multivariate threshold autoregressive model, together with the characteristic impulse response functions and forecast error variance decomposition, is adopted in this study. Using quarterly data spanning 1985–2008, a non-linear model of oil price shocks and economic growth is estimated. Our main results indicate that oil price shocks do not account for a significant proportion of Observed movements in macroeconomic aggregates. This pattern persists despite the introduction of threshold effects. This implied the enclave nature of Nigeria’s oil sector with weak linkages. Therefore, the need to spend oil revenue productively is imperative if favourable effect on real output growth is envisaged.
Oil Price Shocks and Economic Growth in Nigeria: Are Thresholds important?
(John Wiley & Sons Inc., 2011) Adeniyi, O. A.; Omisakin, O. A.; Oyinlola, M. A.
The impact of oil price shocks on the economy has occupied the attention of researchers for almost four decades. Majority of studies support the existence of a negative association, while some recent evidences seem to have popularised the view that outcomes are the artefacts of misspecified functional forms. This study, although similar in spirit to this popular opinion, is, however, distinct in a number of ways. Firstly, unlike most Nigeria-specific studies, this paper explores alternative measures of oil price shocks, which have been developed and used in the literature with a view to ascertaining the extent to which conclusions about the oil price-growth association depend on the definition of shocks adopted. More importantly, this, to the best of our knowledge, is a pioneer attempt at introducing threshold effects into the linkage between oil price shocks and output growth in Nigeria. The relatively recent regime-dependent multivariate threshold autoregressive model, together with the characteristic impulse response functions and forecast error variance decomposition, is adopted in this study. Using quarterly data spanning 1985–2008, a non-linear model of oil price shocks and economic growth is estimated. Our main results indicate that oil price shocks do not account for a significant proportion of Observed movements in macroeconomic aggregates. This pattern persists despite the introduction of threshold effects. This implied the enclave nature of Nigeria’s oil sector with weak linkages. Therefore, the need to spend oil revenue productively is imperative if favourable effect on real output growth is envisaged.
Oil Revenue, Institutions and Macroeconomic Indicators in Nigeria
(OPEC Energy Review 37(1), pp. 30-52, 2013) Ushie, V.; Adeniyi, O. A.; Akongwale, S.
The influx of massive revenues during periods of abnormally high oil prices creates enormous challenges for policy-makers in oil-producing countries. In Nigeria, the prudent utilisation of oil revenues has remained elusive for policy-makers over time. While the country has earned sizeable oil revenues from its natural endowment, poverty and income inequality have been persistent. This study tests the sensitivity of several important macroeconomic indicators to oil revenue shocks. We additionally test for the effect of ‘institutional quality’, in recognition of the important role played by the domestic institutional context in shaping the policy responses adopted by successive Nigerian governments to oil windfalls over time. The sensitivity analysis supports the general view that fluctuations in oil revenues have resulted in inflation, lower output growth and real exchange rate appreciation in Nigeria. More importantly, the aforementioned institutional variable is found to be very significant. This finding is consistent with the general assessment of fiscal performance in Nigeria during oil windfalls as being driven by domestic institutional dynamics. Ostentatious public consumption widened fiscal deficits, and government spending has been highly pro-cyclical during windfall episodes. In conclusion, the study offers appropriate policy recommendations, which could be adopted to enhance the management of future oil windfalls in Nigeria.
On the Limits of Trust: Characterising Automated Teller Machine Fraudsters in Southwest Nigeria
(Emerald Publishing Limited, 2016) Tade, O.; Adeniyi, O. A.
Purpose – This paper aims to investigate automated teller machine (ATM) fraud in southwest Nigeria, as extant studies have not examined the unintended consequences of ATM subscription particularly the effect of the identity of fraudsters and the strategies for defrauding. Design/methodology/approach – Using sequential exploratory strand of mixed method, data were collected from both ATM users and victims of ATM fraud using multi-stage sampling procedure. This involved purposive selection of Lagos and Oyo states. Findings – Results showed that fraudsters were typically lovers, friends, relatives and sometimes children of victims. Strategies for defrauding included card cloning, swapping of cards and physical attacks at ATM galleries. Research limitations/implications – Because of the size of the sample which is small, the research results may lack generalizability. More expansive works are needed across Nigeria in this regard. Practical implications – The paper includes implications for policy initiative concerning the deployment and use of payment systems such as ATM in Nigeria. Social implications – The paper reveals the limits of trust in cashless policy. It raises salient policy issues concerning the need for the governance of trust to engender adoption. Originality/value – The paper characterizes fraudsters and their strategies for defrauding.
Output Growth Volatility, Remittances and Institutions
(Emerald Publishing Limited, 2015) Ajide, K.; Raheem, I. D.; Adeniyi, O. A.
Purpose – The purpose of this paper is to empirically examine the role of institutions on the remittances– output growth volatility relationship. Design/methodology/approach – The data set of this paper is limited to 71 remittances recipient countries. In an attempt to deal with endogeneity issues, the paper adopts the use of system generalized method of moment (GMM). Findings – First, in consonance with earlier studies, the growth volatility reducing influence of remittances flows was established. Second, unlike the extant literature, the growth volatility reduction potential of remittances was found to be more pronounced in the presence of well-functioning institutions. Finally, the interaction of remittances with our six institutional quality measures showed that growth volatility reduced considerably with better institutions. Practical implications – In terms of policy, remittances recipient countries need to simultaneously pursue economic and governance reforms. Both of these will enhance the counter-cyclicality of remittances and possibly other capital flows. Originality/value – Substantial efforts have been devoted to investigating the impact of remittances on output growth volatility, while very little research attention has been devoted to analysing the impact of institutions on the remittances– output growth volatility nexus.
Purchasing Power Parity: Further Evidence from African Countries
(Dr. Mohammad A. Wadud, 2011) Oyinlola, M. A.; Adeniyi, O. A.; Egwaikhide, F. O.
In this paper we pursue an empirical enquiry into the validity of an equilibrium absolute purchasing power parity (PPP) for a sample of 26 economies in Africa. Using univariate as well as panel unit root tests on yearly observations spanning 1973 to 2008, we uncover evidence that the PPP notion holds in just a little over one third of the countries selected and breaks down on average when the latter class of tests are employed. In sum, non-linear modelling of exchange rate convergence to its PPP trajectory could foster understanding on the subject.