Resource‐led Development: An Illustrative Example from Nigeria

Abstract: Several strategies are open to an economy in its attempt to attain sustainable economic development, depending on its historical background and resource endowment. One such strategy is the resource‐led strategy. Nigeria is very rich in crude oil and has reaped billions of petrodollars. However, the country faces the problem of successfully translating this huge oil wealth into sustainable development. This paper employs the vector error correction technique in examining the long‐run impact of the huge oil wealth accruing to Nigeria on its economic development. Basic indicators such as growth, private consumption, infrastructure (electricity), agriculture and manufacturing output growth rates are examined. The empirical results suggest a significant positive long‐run impact of per capita oil revenue on per capita household consumption and electricity generation while a negative relationship is established for GDP, agriculture and manufacturing. Even for those with a negative relationship at current period, there exist positive relationships at subsequent lags. Thus, oil revenue, if properly managed and invested, could be effectively used to induce oil‐led development for Nigeria provided that the initial inhibitions of corruption, lack of transparency, accountability and fairness in its use and distribution are removed.     

Structural Re-Adjustment in Nigeria: Diagnosis of a Severe Dutch Disease Syndrome

A bstract . Nigeria has adopted a program of structural adjustment economic reforms since 1986 in an effort to retrace steps toward economic stability. This Nigerian economic recovery effort based on structural adjustment is an attempt to cure a classic although extreme symptom of the "Dutch disease," but despite this determined effort, success may be threatened by two fundamental economic errors that contributed to the problem in the first place.     

Incidence and duration of unemployment spells: Implications for the male–female wage differentials

We demonstrate in this paper that the incidence of unemployment and duration of unemployment spells affect the male–female gender wage differential. The results indicate that after controlling for sample selectivity bias in the wage equation, the incidence of unemployment and duration of unemployment spells account for about 14.2% and 39.6%, respectively, of the wage differential that exists between males and females. We observed that while the duration of unemployment accounts for a substantial portion of the wage differential in both the service (48.8%) and the manufacturing (17.0%) sectors, the impacts of the incidence of unemployment and duration of unemployment spells variables on the wage differential are rather small in the service (0.07%) and the manufacturing (1.6%) sectors. Also, high incidence of unemployments is associated with low wages for males and females in all samples. In contrast, longer durations of unemployment spells tend to increase males’ wages and decrease females’ wages in the full and service sector samples. At the macro level, the results seem to suggest that promotion of gender wage equality should be associated with policies that will minimize the female's incidence of unemployment and duration of unemployment spells.     

Housing Loan Patterns Toward Minority Borrowers in Mississippi: Analysis of Some Micro Data Evidence of Redlining

We apply a cross-regional probit analysis to examine the existence or otherwise of the discriminatory practice of “redlining” in housing loan lending practices of banks in Mississippi. Data on loan denial rates across three Mississippi regions of Tri-County Metro-Jackson, Southern Mississippi Corridor, and the Northern district are studied to determine the pattern of bank lending activities regarding owner-occupied housing loan extensions to minority members of Mississippi's population. The purpose is to determine the degree to which the banks have or have not observed fair and equitable lending practices toward minority borrowers, relative to the members of the majority population. The results suggest that there is a consistently high denial rates against minorities. The results indicate strong evidence of redlining practices in housing loan decisions, which contribute to the growth of racial segregation in the state.

Canada's Global Competitiveness Challenge

A bstract . Any conclusions regarding Canada's competitiveness must be based on the criteria of total factor productivity rather than trade performance. The use of available data on merchandise export/import balance is misleading because merchandise trade , for instance, precludes trade in services. While trade performance criteria is less than sufficient in judging the competitiveness of Canada , close study of the total factor productivity criteria does not find evidence for the alleged "crisis of Canadian loss of competitiveness."