The vision is a concept of national development, which aims at moving nigeria s economy into the league of the worlds 20 largest economies by the year 2020. This includes regional, national, and global economies while macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline. In recent years, all her efforts to grow the economy, nigeria s rate of economic growth has remained very volatile and sluggish. Since then, nigerias economic growth has been driven by growth in. Nigeria economic growth after only gradually recovering from the 2016 recession, the economy is set to contract again this year. Economic growth is a narrower concept than economic development. Observably, several factors like trade policy regime, quality of human resources, level of domestic. Nigeria with the much needed capital for investment which improved economic growth. However and in contrast to the above, sekou 2015 in his study utilised ordinary least square method to estimate. Yusuf department of economics, nile university of nigeria, abuja fct abstract. It is believed that an understanding of these concepts would help in unveiling the challenges or otherwise the problems of fiscal federalism in nigeria, especially in relation to national development.
Government of nigeria has taken a giant stride to treat agriculture as serious political, economic and investment issue in nigeria. Pdf effect of business on economic development in nigeria. Economic growth in nigeria has largely been accounted for by resilient agricultural growth associated with performance in four constituent subsectors. In this chapter our concern is with some basic preliminary concepts. Also, most of the typically scanty empirical attempts have been, in the main, conducted at the crosscountry levels, thus, making it quite difficult to extrapolating to countryspecific cases.
In the final section of the paper i will attempt to draw useful conclusions regarding privatization as an economic growth policy. Economics discusses the economic problems and economic activities and indicates proper solution to these problems. Moyo, clement and kolisi, nwabisa and khobai, hlalefang nelson mandela university 12 september 2017 online at mpra paper no. Economic growth vs economic development best 7 differences. The study examines the macroeconomics determinants of economic growth in nigeria measured by real gross domestic product rgdp. According to haller 2012, economic growth is, in a limited sense, an increase of the national income per capita, and it involves the analysis, especially in quantitative terms, of this process. In recent years, all her efforts to grow the economy, nigerias rate of economic growth has remained very volatile and sluggish. Rather, the discussion is confined to the concept of economic growth. The relationship between trade openness and economic. Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic gro. 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 granger causality tests.
Problems of economic development in nigeria and solutions. It measures all the aspects which include people in a country become wealthier, healthier, better educated, and have greater access to good quality housing. Nigeria gdp annual growth rate 19822019 data 20202022. The fourth section will introduce and discuss the results of my own empirical study.
Effectiveness of naira devaluation on economic growth in. One conclusion of the present analysis is that they represent different qpes of concepts. Increase in savings leads to increase in capital formation and production activities that will lead to employment creation and reduce external borrowing of government. The recent reversal trend in gdp growth of ict leaders can be attributed to effective utilization of soft innovation resources in finland and adherence to traditional resources in singapore. Introduction according to omoyibo and akpomera 20, security is a concept that is prior to the state, and the state exists in order to provide that concept. It was recommended that pro poor policies should be designed for. The impact of monetary policy on the economic growth of nigeria. The importance of human capital formation concept on economic growth cannot be over emphasized and have been the fulcrum of aid and assistance by international agencies and developed countries. Nigerias population is projected to grow from more than 186 million people in 2016 to 392 million in 2050, becoming the worlds fourth most populous country. Economic development vs economic growth difference and. An overview of the issues geoff handley, kate higgins and bhavna. This would help to better understand and appreciate how human capital development affect economic growth on a quarterly basis since most of the previous studies in nigeria have basically focused on yearly analysis. Conceptual framework the concept of inflation has been define as a persistence rise in the general price level of broad spectrum of goods and services in a country over a long period of time.
It also identifies other factors that prevail on economic growth in the country. According to leszek balcerowicz, economic growth is a process of quantitative, qualitative and. Insecurity and socioeconomic development in nigeria. The economic growth is also the process that allows the receding of phenomena with a negative economic and social impact, like unemployment or inflation. The concept of economic development is not considered explicitly. Macroeconomic determinants of economic growth in nigeria. Majority of people in nigeria live and work in rural area. Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with agriculture being the lead sector. Nigeria has been ranked as one of the most corrupt countries n the world. The essence of this section of the study is to conceptualize the concepts of federalism, fiscal federalism and that of development. Impact of human capital development on economic growth in nigeria.
Effects of economic growth on poverty reduction in nigeria. It is frequently argued that these are one and the same concept. Inflation has been intrinsically linked to money, as captured. Apr 16, 2019 economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Augmented dickeyfuller adf test was used for the unit root test and johansens cointegration test was also conducted to. Under this situation we have to choose the more urgent wants.
Furthermore, evidence from developed countries suggests that human capital has been the major driver of their development process. Role of agriculture in economic growth development. This paper explored the effect of economic growth on poverty reduction in nigeria using a time series data spanning from 19802016. Such problems include high unemployment rate, low investment, high rate of inflation and unstable foreign exchange rate. Pdf the role of security agents on economic development. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. Impacts of information and communication technology in. Also, since it is imperative that economic planning models are relevant in promoting economic growth and development along the thought of todaro and smith 2011, it is worthwhile to explore how planning models are relevant to economic development in nigeria.
The digital economy is transforming the traditional concepts of economic growth. The role of microfinance banks in the economic development of a nation 1 abstract this paper examines the important role of microfinance banks in the economic development of a nation. The decision taken by monetary policy committee in november 2014 on naira devaluation has generated a lot of arguments both for and. Following the 200809 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Jul 24, 20 economic growth is a narrower concept than economic development.
It is an increase in a countrys real level of national output which can be caused by an increase in the quality of resources by education etc. In the first place, economic growth is defined as sustained annual increases in an economy s real national income over a long period of time. Economics also discuses about the value judgment of human actions and behavior. It was also found that entrepreneurship can enhance economic growth and development primarily by generating employment and foster the growth of micro, small and medium enterprises in nigeria. Ordinary least square method and ttest was used to test the variables most likely to impact on economic growth in nigeria due to inflation. The nigeria experience godstime osekhebhen eigbiremolen1. Economics is an idea which make a relationship between scarce means and unlimited wants. As a result, a range of definitions exist, influenced by different.
In the 1960s, nigeria was on a par, in terms of aspirations to attain a very high level of. 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. Economic development is the process focusing on both qualitative and quantitative growth of the economy. The importance of mining and quarrying in accelerating the pace of economic growth in nigeria should rather motivate the government to deregulate and reform the sector. It emphasizes the fact that sustainable economic development in any nation cannot be achieved without rural transformation and the. Pdf effectiveness of naira devaluation on economic growth. Saibu 2015 adopted the model developed by scully 2003 for cote divoire. We used time series data obtained from cbn for a period of 26 years that is 1986 to 2012. Currency devaluation as a policy instrument has been used in several countries both developing and developed. But, obviously, a durable economic growth sustains human development. Government expenditure and its implication for economic.
The study focuses on the impact of petroleum profit tax, company income tax, personal income tax, value added tax revenue on nigeria s economic growth between 1980 and 20. Munich personal repec archive the relationship between trade openness and economic growth. It can be measured in nominal or real terms, the latter of. Effect of business on economic development in nigeria article pdf available in journal of business economics and management volume 54. There is no shortage of empirical and theoretical studies regarding the role of exports in raising the economic growth and development of a country. Effects of economic growth on poverty reduction in nigeria oyegoke o. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 22ndlargest in terms of purchasing power parity. We found that nigeria s economy has continued to grow over the last decade with the real gdp growth rate hovering around 7%. The continuous rise in insecurity and deterioration in the economic development in nigeria call for a concern among researchers and policy makers over the years. This section attempts to explain the demerits of ict in the economy of nigeria. Almost 75% are rurally based compared to less than 25% in urban area. Nigeria is sub saharan africas largest economy and relies heavily on oil as its main source of foreign exchange earnings and government revenues. It, therefore, becomes necessary to highlight the monetary policy in nigeria.
The main theoretical base of the growth centre concept is the growth pole model. Nigeria is considered to be an emerging power house, annual growth rates have averaged more than 7% per year, making the nigeria economy one of the fast growing economies in the world. The study period spans economic cycles for about 66 percent of the life of. Insurgency and its implication on nigeria economic growth. Fiscal federalism and challenges of development in nigeria. Motivated by this controversial, this study examined the impact of inflation on economic gro wth and established the existence of inflation growth relationship.
The classical economists like adam smith and david ricardo have argued that international trade is the main source. Again the study reveals that trade partner of nigeria appears to be gaining more than the country. The gap between the minority rich and the majority poor is big and still growing. Nigerias sustained high population growth rate will continue for the foreseeable future because of population momentum and its high birth rate. They used disaggregated analysis in an attempt to unravel the impact of government expenditure on economic growth. Harris abstract focused on the emerging conditions of industrial capitalism in britain in their own time, the classical economists were able to provide an account of the broad forces that influence economic growth and of the mechanisms underlying the growth process. Nigeria economy gdp, inflation, cpi and interest rate.
Effect of inflation on the growth and development of the. Among other things, it was the thinking of soludo 2007 that with an average gdp growth rate of 7% recorded since 2003 as against 2. The concept of human capital refers to the abilities and skills of human resources of a country. In recent years, nigeria has been experiencing growth and the condition seems right for launching unto a path of sustained and rapid growth, justifying its ranking amongst the 11 countries as identified by goldman sachs to have the potential for attaining global competitiveness based on their economic and demographic settings and the. This page provides nigeria gdp annual growth rate actual values, historical data, forecast, chart, statistics, economic. In other words, economic growth means rising trend of net national product at constant prices. In the 1960s, nigeria was on a par, in terms of aspirations to attain a very high level of economic growth and development, with its fellowoil producing and exporting countries such as malaysia and indonesia, but has since failed to keep pace with them. In nigeria, studies have been carried out on the effect of entrepreneurship development on the problem of high unemployment rate, high level of poverty and slow economic growth rate adejumo, 2001. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. The growth in government expenditure in nigeria, according to buhari 1993 as citied by ogwuru 2009, is due to, among other factors, rising income level, urbanization of the population, technological and innovative. Demerits of ict in the economy of nigeria in as much as ict ensures a promising future for national economic growth and development, the adverse effects of ict in nigerian economy cannot be sidelined. Impact of human capital development on economic growth. Besides, how economic development of the country is achieved through the means of economic planning is also included in the subject matter of economics.
Insecurity, security, growth, socio economic development, nigeria 1. The role of security agents on economic development and growth in nigeria article pdf available june 2014 with 1,585 reads how we measure reads. The model originates from the work of francois perroux who started from the view that economic growth does not occur everywhere all at once, but starts at a few 1 wekwete, k. Confronting a productivity decline in the digital economy, global. The impact of human capital formation on economic growth in.
Poverty in nigeria remains significant despite high konyeaso. The main aim of this study is to investigate the impact of international trade on nigeria s economic growth between 1981 and 2014. These perceived problems are being claimed to have caused a fast decline in the economic growth of nigeria. Poverty and poverty reduction in subsaharan africa. Similarly, over 58% of the labour force engaged in agriculture. In the first place, economic growth is defined as sustained annual increases in an economys real national income over a long period of time. Agricultural production and economic growth in nigeria. 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. Their results reveal that government total capital expenditure, total. However, this study shall look at both the impact of human capital and health on economic growth in nigeria.