Economics

Permanent URI for this communityhttps://repository.ui.edu.ng/handle/123456789/293

Browse

Subject: search.filters.subject.Cointegration

Search Results

Now showing 1 - 3 of 3
  • Thumbnail Image
    Item
    Structural Breaks and the Finance-Growth Hypothesis in ECOWAS: Further Empirical Evidence
    (Eastern Macedonia and Thrace Institute of Technology, 2014) Omisakin, O.; Adeniyi, O. A.
    This study makes a cross sectional case in investigating the validity, or otherwise, of the finance driven growth hypothesis in the ECOWAS countries using annual data from 1970 to 2008 for seven countries namely: Burkina Faso, Cote d’Ivoire, The Gambia, Ghana, Nigeria, Senegal and Togo. In contrast to earlier studies on developing countries, this study specifically tests for the possibility of structural breaks/regime shifts in the finance-growth long run relationship by employing the Gregory and Hansen (1996) residual based test which accounts for endogenous structural break. While the Gregory-Hansen structural break cointegration result confirms the existence of cointegration relationships among the selected countries despite the breakpoints, the Granger-causality test result indicates a general pattern of causality running from financial development to economic growth in most of the countries. Also, the striking feature of the result of our estimated growth model generally lends credent to the importance of financial development in explaining growth dynamics among the selected countries, thus reinforcing the finance-driven growth hypothesis.
  • Thumbnail Image
    Item
    Structural Breaks, Parameter Stability and Energy Demand Modelling in Nigeria
    (Eastern Macedonia and Thrace Institute of Technology, 2012) Omisakin, O.; Adeniyi, O. A.; Oyinlola, M. A.
    This paper extends previous studies in modeling and estimating energy demand functions for both gasoline and kerosene petroleum products for Nigeria from 1977 to 2008. In contrast to earlier studies on Nigeria and other developing countries, this study specifically tests for the possibility of structural breaks/regime shifts and parameter instability in the energy demand functions using more recent and robust techniques. In addition, the study considers an alternative model specification which primarily captures the price-income interaction effects on both gasoline and kerosene demand functions. While the conventional residual-based cointegration tests employed fail to identify any meaningful long run relationship in both functions, the Gregory- Hansen structural break cointegration approach confirms the cointegration relationships despite the breakpoints. Both functions are also found to be stable under the period studied. The elasticity estimates also follow the a priori expectation being inelastic both in the long- and short run for the two functions.
  • Thumbnail Image
    Item
    Demand for international reserves: a case for reserves accumulation in Nigeria
    (Central Bank of Nigeria (CBN), Research Department, 2011-09) Bankole, A. S.; Olaniyan, O.; Oyeranti, O.; Shuaibu, M. I.
    This paper examined the determinants of international reserves holding in Nigeria, where a huge amount of foreign reserves is necessary to ensure good macroeconomic policy and international credit worthiness. Adopting a dynamic modeling approach combined with the Mizon-Richard encompassing test, both precautionary and mercantilist motives explain holding of foreign reserves in Nigeria. Specifically, the current account variability and past levels of external reserves drive reserve holding in the short run. In the long run, the former and the money supply are significant determinants. Therefore, enhancement of exports through support for quality and competitiveness of non-oil exports are key to reserves management.