The Linear regression model is one of the most widely used models in different fields of study. The most popularly used estimation technique is the ordinary least squares estimator. The technique becomes unstable and gives misleading result in the presence of multicollinearity. The ridge regression estimator has been widely accepted as an alternative method to combat the problem of multicollinearity. In this study, a modified ridge‐type estimator is suggested by modifying the ridge regression estimator. A Monte Carlo simulation study and real‐life application were conducted to compare the performance of this estimator and some other existing estimators. The results of both simulation study and real‐life application show that the proposed estimator outperforms other competing estimator.
Economic growth and development is the main objective of the Nigeria economy. However, variations due to shock or innovation in different economic variables reveal volumes to the policy makers and economists. The primary objective of the paper is to examine the relationships between agricultural export and economic growth in Nigeria employing the vector autoregressive (VAR) impulse response function analysis technique. Nigeria's annual time series data on economic growth (proxied as real gross domestic product), gross domestic capital formation, real exchange rate, and agricultural exports to other countries were employed in the study. The data which spanned the period of 1980 to 2015 were sourced from FAOSTAT database of the Food and Agricultural Organization of the United Nations, Central Bank of Nigeria online Statistical database and the World Bank. Results show that agricultural export has a positive and significant effect on economic growth in Nigeria. The influence of the shock or innovation of agricultural export to economic growth is almost doubled in the long run as compared to that of short run. The shock of real effective exchange rate on economic growth in the long run is far stronger than the innovation in the short run. It will therefore be a suitable measure to increase agricultural export and real exchange rate to accelerate the economic growth of the nation in the long run.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.