Noble International Journal of Economics and Financial Research

Online ISSN: 2519-9730 | Print ISSN: 2523-0565


    Volume 7 Number 1 March 2022

What Is The Role Of The Banking Sector In Economic Growth? Case of Tunisian Banks

Pages: 24-31
Authors: Souad HAMMAMI*, Mounir SMIDA
The objective of this article is to test the impact of a financial system inspired mainly by the banking sector on the economic growth in Tunisia. In this work uses annual data from 1980 to 2017. We have used four proxies of Financial Development (DF) with reference to the banking sector, namely Broad Money (M2), Domestic Credit to the Private Sector (DCPS), Credit domestic by banking sector (DCBS), and bank deposits (BDL). Control variables, such as trade (TRADE), government expenditure (govexp), and gross domestic savings (GDS), were added to the analysis. The results revealed that there is a positive relationship and statistically significant difference between financial development and economic growth. However, BDLs are positive but statistically insignificant, and M2 is negative and statistically insignificant. Also, unidirectional and bidirectional causality was found between the variables. Indeed, there is an urgent need for a robust banking sector to ensure long-term sustainable economic growth.

Interrogating the Level of Unemployment, Insecurity and Its Implication on Foreign Direct Investment in Nigeria: ARDL and Granger Causality Approach

Pages: 10-23
Authors: Sule, Abubakar*, Mohammed, I.D., Wada, Yahaya
This study interrogates the level of unemployment, insecurity and its implication on foreign direct investment in Nigeria (1999 to 2019) using quarterly time-series data sourced from the Central Bank of Nigeria Statistical Bulletin and World Bank’s Development Indicator. The specific objectives are to investigate the effect of insecurity on foreign direct investment and to determine the causation between unemployment and insecurity. The first preliminary test employed are the Augmented Dickey-Fuller and Dickey-Fuller Generalised Least Square (GLS) unit root tests while Autoregressive Distributed Lag model, Johansen Co integration and Granger Causality test is used for the analysis. For objective one, the bounds test shows that there is a long-run connection between the dependent and independent variables. For the variables used to capture insecurity, the ARDL coefficients for both long-run and short-run revealed that the NTI and DFE exhibit a negative relationship while ISE exerts a positive relationship with FDI and are statistically significant at 1% and 5% respectively. Furthermore, it takes 21% for the model to adjust to equilibrium in the long-term. For the second objective, Johansen Co integration test further shows that there is long-run association between the regressand and regressors. The granger causality result indicates that NTI granger causes UER and DFE. From the findings above, this study recommends total overhauling and restructuring of security architecture for both military and paramilitary through the strengthening of existing laws, budgeting of substantial amount for the purchase of modern security equipment and enhancing the welfare of security personnel. If these are in place, it stands to guarantee security of life and property thereby inducing foreign investment that can create more job opportunities for teeming youths.

Monetary Policy and Balance of Payment: An Empirical Evidence In Nigeria

Pages: 01-09
Authors: Yakubu Yusuf*, Ebeh, Joy Eleojo, Ajayi Okunola Tosin
Monetary policy is an approach which the central bank of any nation uses to direct the supply of money stock in order to attain general macroeconomic goals. This makes it important to conduct a study of the monetary policy-balance of payment relationship in Nigeria. The objectives of the study was to examine the impact of monetary policy on balance of payment in Nigeria.  The study used annual time series data on balance of payment being the dependent variable while monetary policy rate, exchange rate, inflation rate, money supply and bank credit to private sector were the independent variables. Autoregressive distributed lag (ARDL) model was used to achieve the objective. The study revealed that all the monetary policy variables such as monetary policy rate, exchange rate, inflation rate, money supply, bank credit to private sector had significant negative impact on balance of payment in Nigeria. The study concluded, based on the findings, that increasing monetary policy rate in the Nigeria economy implies decline in balance of payment. Government of Nigeria should ensure that amount of monetary policy rate is reduced to maintain short term monetary policy rate in order to achieve favaourble balance of payment in Nigeria economy.

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