In this study, we rely on the extension of the endogenous growth theory to consider the role of ICT diffusion in the finance-growth nexus theoretically informed via the supply-leading and demand-following theses. Motivated by current realities highlighting the significance of information and communication technologies (ICTs) to modern societies, the study evaluates the foregoing research objective in ECOWAS countries over the 2005-2016 period based on the justification of the ICT diffusion into the ECOWAS region around the early 2000s. Innovatively, the study constructs an ICT diffusion index covering fixed telephone lines, mobile cellular subscription and Internet penetration as relevant media for ICT dispersion. We adopt the pooled mean group estimator on a dynamic panel ARDL model for robust analysis of the subject matter. We find that financial development (its main and alternative measure) alone inhibits growth of ECOWAS countries, but its interaction with ICT diffusion promotes economic growth in the region. The implication of our research findings for the West African region is that financial sector development efforts have to be strengthened by investment in ICT infrastructure, improved Internet penetration and further integration of electronic finance policies.

No abstract

This paper investigates the asymmetric oil price-inflation nexus in Nigeria covering the period of 2009Q1 and 2018Q4. We adopt the Nonlinear Autoregressive Distributed Lags (NARDL) model approach. The result of the study indicates that there exists a nonlinear long run connection between international oil price and inflation in Nigeria which suggests that fluctuations in oil price influence domestic inflation in Nigeria asymmetrically. Further, the result of the study indicates that in the long run, both increase and decrease in global oil price exerts a negative effect on inflation, that is, rise and fall in global oil price will lead to decline in inflation. However, in the short run, increase in global oil price exerts a positive influence on inflation which implies that positive oil price shock is inflationary. The study therefore recommends that government need to source for alternative energy in order to minimize the influence of international oil price shocks on domestic price level.Contribution/ Originality: This study contributes to the existing literature by examining the asymmetric effect of oil price on inflation in Nigeria. Using the Nonlinear Autoregressive Distributed Lags (NARDL) model, the study established that in the long run, both increase and decrease in global oil price exerts a negative effect on inflation in Nigeria.

No abstract

The study examined the role of monetary policy in the stock price-exchange rate nexus in the three major financial markets in Africa between 2005 and 2017. Essentially, the study attempted to validate the trade balance approach (TBA) for the African stock markets and conducted analyses in the periods before and after the global financial crisis (GFC). The study focused on Nigeria, South Africa and Egypt and utilized data on nominal exchange rate, stock price, nominal interest rate and consumer price index sourced from the International Financial Statistics of the International Monetary Fund. The trend analysis revealed that stock price and exchange rate in South Africa moved in the same direction while the variables moved in different directions in Nigeria and Egypt. With the aid of the panel autoregressive distributed lag technique (PARDL), the study showed negative and significant relationship between exchange rate and stock price, validating the TBA for the full sample and the post GFC periods while the theory cannot be substantiated for the pre-GFC period. Contribution/ Originality: This study contributes to the existing literature by examining the role of monetary policy in the stock price-exchange rate nexus in Africa's three largest economies. Using the Panel Autoregressive Distributed Lag Model, the study validates the TBA for the full sample in African stock markets.