Stock market development and economic growth: Evidence from seven sub-Sahara African countries

The paper examines the long run and causal relationship between stock market development and economic growth for seven countries in sub-Saharan Africa. Using the autoregressive distributed lag (ARDL) bounds test, the study finds that the stock market development is cointegrated with economic growth in Egypt and South Africa. Moreover, this test suggests that stock market development has a significant positive long run impact on economic growth. Granger causality test based on vector error correction model (VECM) further shows that stock market development Granger causes economic growth in Egypt and South Africa. However, Granger causality in the context of VAR shows evidence of bidirectional relationship between stock market development and economic growth for Cote D’Ivoire, Kenya, Morocco and Zimbabwe. In Nigeria, there is a weak evidence of growth-led finance using market size as indicator of stock market development. Based on these results, the paper argues that stock markets could help promote growth in Africa. However, to achieve this goal, African stock markets need to be further developed through appropriate regulatory and macroeconomic policies.     

The Impact of Adjustment Programme On Manufacturing Industries In Nigeria, 1986–1991: A Sample Study

Abstract: This paper examines the impact of adjustment programme on manufacturing industries in Nigeria. A survey of 370 manufacturing industries randomly selected was undertaken in several parts of the country. It is found that the adjustment policies had different effects on profits, capacity utilization, sales, exports, employment and production costs in different industries. Overall, the results show that industrial sub-groups such as food and beverages, textiles and clothings, and other consumer products, most of which Nigeria has comparative advantage benefitted positively from the reforms. Capital industries in the chemical, pharmaceutical, electronics, electrical and metals were severely affected in terms of profits, capacity utilization and local sourcing of raw materials. Résumé: Ce document examine l'impact du programme d'adjustement sur les industries manufacturières au Nigeria. Une étude portant sur un échantillonnagc aléatoire de 370 unités industriellcs a été menée en différentes régions du pays. Cette étude a démontré que sclon l'industrie en cause, la politique d'adjustcment a des incidences différentes sur les bénéfices, l'utilisation des capacités, les ventes, les exportations, 1'emploi et les autres produits de consommation pour lcsqucls le Nigéria bénéficie d'une avantage comparatif, les réformes ont cu des retombées favorablcs. En revanche, les industries à forte intensité de capital, telles que l'industrie chimiquc et pharmaceutique, l'électroniquc, l'électricité et la métallurgie, se sont fortement rcsscntics des conséquences des réformes en termes de profits, d'utilisation des capacités et d'approvisionnement local en matières premières.     

Determinants of Working Capital Requirements in Selected Quoted Companies in Nigeria

In this article, the author investigates the determinants of working capital requirements of 66 firms in Nigeria using panel data for the period 1997–2007. The results suggest that sales growth, firms’ operating cycle, economic activity, size, and permanent working capital are firm specific characteristics that positively drive working capital policy. Leverage, however, is inversely related to working capital requirements. Essentially, the results imply that traditional valuation methods used to quantify the efficiency of corporate working capital policy may be suspect as increased investments in operating working capital may be necessitated by increased business uncertainties. In general, the findings suggest that some of the insights from modern finance theory are potable to Nigeria.     

A cost function analysis of import demand for Nigeria

The article uses a translog cost function to examine the substitution relations among capital, labour and imports. The results show that capital has a substitute relation with domestic labour and import. However, labour and import have complementary relationship. The implication of this finding is that liberalization policies, if pursued vigorously, could impart positively on the demand for labour. In addition, it suggests that economic growth could be enhanced through trade liberalization.     

Assessing the impact of Nigeria's naira depreciation on output and inflation

This research examined the impact of the 3 May 1999 tornado on the Oklahoma City labour market. We estimated time series models that allow for time-varying variance in employment growth. The models include intervention variables designed to capture the tornado's effect at initial impact as well as over the post-tornado period. In terms of total employment growth, the Oklahoma City Metropolitan Statistical Area (MSA) experienced an increase in employment growth and a reduction in labour market risk in the sample period following the tornado. The analysis also examined the effect of the weather event on eight industrial sectors. Five of eight sectors experienced significant decreases in labour market risk after the tornado. Our evidence suggests that Oklahoma City and surrounding communities that make up the Metropolitan Statistical Area survived the disaster without suffering any extended adverse labour market effects. Our results indicate that at least in the aggregate, the labour market improved.

“…?what has so often excited wonder, the great rapidity with which countries recover from a state of devastation; the disappearance, in a short time, of all traces of the mischiefs done by earthquakes, floods, hurricanes, and the ravages of war?…?all the inhabitants are ruined, and yet in a few years after, everything is much as it was before.”?–?J.S. Mill (1848 Mill, J. 1848. Principles of Political Economy, Edited by: Ashley, WJ. New York: A M Kelley Publishers. 1965 [Google Scholar])