FACULTY OF THE SOCIAL SCIENCES

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Author: search.filters.author.Adekunle, W.Has files: Yes

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    Tourism-Income Inequality Nexus in Africa: Evidence from SADC countries
    (Taylor & Francis (Routledge), 2023) Adeniyi, O. A.; Adekunle, W.; Afolabi, J.; Kumeka, T.
    The tourism sector is one of the fastest-growing services sub-sectors worldwide and promises to unlock job opportunities and improve social inclusion outcomes in developing countries. We focused on the Southern African Development Community (SADC) region, which houses developing countries with high income inequality and constitutes attractive tourist centres in sub-Saharan Africa. We employed both the disaggregated and composite indicators of tourism development to investigate the tourism-income inequality nexus in the SADC region from 2010 to 2019. Utilizing the panel quantile regression approach, our overall results suggest that tourism development is inequality-worsening, and this is robust to both the composite tourism index and the individual tourism indicators (except in a few instances). While we established that net FDI inflows improve the inequality outcomes in the region, less corruption worsens inequality (except in a few cases). Accordingly, we offer relevant policy options for the governments of the SADC region.
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    Impact of Tourism Development on Inclusive Growth: A Panel Autoregression Analysis for African Economies
    (SAGE Publications Ltd, 2023) Adeniyi, O. A.; Kumeka, T.; Orekoya, S. O.; Adekunle, W.
    The persistent debate among policy makers and academics around combating the high rates of poverty and income inequality can be further illuminated by understanding how tourism con tributes to inclusive growth, especially in developing economies. Tourism sector can be regarded as one of the key contributors to inclusive growth and where it has the capacity to generate prospects for productive employment. The goal of this article is thus to investigate the link between inclusive growth and tourism in the African context. To do this, we utilized a recent panel vector autoregression (pVAR) and data for 45 African countries spanning the period 1995 to 2019. Thus, by the error variance decomposition and impulse response functions, our results showed a weak positive effect of international tourism arrivals and the composite tourism indicator on inclusive growth, while tourism receipts and tourism expenditure insignificantly decreases inclusive growth in the sampled African economies. Our result is further supported by the panel system generalized method of moments (GMM). We provide some policy implications from our findings.
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    Savings-Investment Gap in Sub Saharan Africa: Does the Interaction of Financial Sector Development and Migrant Remittances Matter?
    (Statistics, Department of the Central Bank of Nigeria:, 2022) Adeniyi, O. A.; Afolabi, J.; Adekunle, W.; Babatunde, M.; Omiwale, E.
    This study analyzes the interactive effects of migrant remittances and financial development on savings-investment gap for a panel of 18 Sub-Saharan Africa (SSA) countries from 1990-2017. Results from a panel ARDL model show that migrant remittances reduce savings-investment gap in the long run. The gap is further reduced when the individual effect of financial development, and the interactive effects of migrant remittances and financial development are taken into consideration. Further analysis reveals evidence of widening effects of rising real GDP growth and bank deposits over a long-term horizon, while higher private sector credit widened the savings-investment gap only in the short-run. The study suggests the need for a policy to reduce migrant remittance transfer costs and encourage beneficiaries to prioritize investment over consumption.
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    Non-Linear Relation Between External Debt and Economic Growth in Nigeria: Does the Investment Channel Matter?
    (Faculty of Economics, University of Tehran., 2021) Adekunle, W.; Adeniyi, O. A.; Orekoya, S. O.
    Large external debt stock has been identified as one of the most important factors which have restricted the development of many poor countries. The consensus in the literature remains that external debt promotes growth to the extent that a country does not exceed its debt carrying capacity. Otherwise, additional debt accumulation would serve as a tax on future investment returns capable of creating disincentive to invest in the highly indebted countries. In the light of these arguments, this study investigates the possible role of domestic investment in the non-linear relation between external debt and economic growth in Nigeria over the period from 1981 to 2015. Based on the results of threshold regression analysis employed in this study, the overall findings showed that the impact of external debt on economic growth is sensitive to both measures of external debt used, and whether or not the role of domestic investment is accounted for. Specifically, this study confirmed the existence of the debt Laffer curve associated with the debt overhang theory arising from excessive external debt accumulation. Similarly, empirical support was obtained for the crowding-out effect of excessive external debt servicing. Also, accounting for the role of domestic investment in the non-linear relation between external debt and economic growth reduces the optimal debt carrying capacity of the country. It is therefore suggested that the Nigerian government internalizes a maximum ceiling of 6.81% as the share of external debt stock in gross national income (GNI) so as to enjoy the resulting growth benefits. External debt financing sources that are free of interest charge could also be explored so as to circumvent the burden imposed by excessive external debt servicing.