Impact of Inflation Rate on the Economic Growth in Nigeria

Shuaib, I. M.; Augustine, Odion; Frank, Alec

doi:10.9734/bjemt/2015/15293

Cited by 9 publications

(6 citation statements)

References 3 publications

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“…For instance, depreciation or devaluation can encourage domestic production and boost private sector investment, which in turn can encourage export, thus improving the balance of payment of the country (Idris & Suleiman, 2019). Money supply was also added; this is premised on the understanding that inflation is caused as a result of monetary expansion, information regarding the current movements in the money supply is important in conditioning expectations (Rousseau & Wachtel, 2002;Shuaib, Augustine, & Frank, 2015). Other added variables are trade openness and government consumption expenditures.…”

Section: Literature Reviewmentioning

confidence: 99%

“…More so, few that address the area cannot provide a valid conclusion on the direction of relationship between the inflation and economic growth (Anochiwa & Maduka, 2015;Denbel et al, 2016;Gatawa, Abdulgafar, & Olarinde, 2017;Inyiama, 2013;Oladipo & Akinbobola, 2011;Shuaib, Augustine, & Frank, 2015). This study attempts to fill this gap by documenting the nature of the causal relationships among the variables.…”

Section: Introductionmentioning

confidence: 97%

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Impact of inflation on economic growth: evidence from Nigeria

Adaramola

Dada

2020

Investment Management and Financial Innovations

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In an attempt to examine the influence of inflation on the growth prospects of the Nigerian economy, the study employs the autoregressive distributed lag on the selected variables, i.e. real gross domestic product (GDP), inflation rate, interest rate, exchange rate, degree of economy`s openness, money supply, and government consumption expenditures for the period 1980–2018. The study findings indicate that inflation and real exchange rate exert a significant negative impact on economic growth, while interest rate and money supply indicate a positive and significant impact on economic growth. Other variables in the model depict no influence on the economic growth of Nigeria. The causality result shows the unidirectional relationships between interest rate, exchange rate, government consumption expenditures and gross domestic product. However, inflation and the degree of openness show no causal relationship with gross domestic product. As a result, the study recommends that a more pragmatic effort is needed by the monetary authorities to target the inflation vigorously to prevent its adverse effect by ensuring a tolerable rate that would stimulate the economic growth of Nigeria.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

Impact of inflation on economic growth: evidence from Nigeria

Adaramola

Dada

2020

Investment Management and Financial Innovations

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“…Studies conducted by Sohail and Li (2023), Shuaib and Ndidi (2015) and Emeka et al (2017) primarily focus on the effects of domestic investment on economic growth. In a comprehensive investigation covering 41 African nations, Younsi et al (2021) utilize a fixed effect and system-generalized method of moments (GMM) estimation technique to explore the impact of foreign aid, foreign direct investment and local investment on economic growth.…”

Section: Ssa: Investment Debt and Developmentmentioning

confidence: 99%

A multidimensional appraisal of domestic investment, external debt and economic development nexus: evidence from SSA

Dinga,

Fonchamnyo,

Afumbom

2024

JBSED

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PurposeThis study examines the effect of external debt and domestic capital formation on economic development in Sub-Saharan African (SSA) economies.Design/methodology/approachUsing the Dynamic Common Correlation Effects (DCCE) technique and the Driscoll and Kraay fixed-effect technique, this paper conducts a multidimensional assessment of external debt and domestic investment on economic development across a panel of 35 SSA countries from 1995 to 2018. The data utilized are sourced from the World Development Indicators (2021) and the United Nations Development Program (UNDP) database (2021).FindingsThe results reveal that domestic investment has a positive impact on economic development in SSA countries, consistent across all three dimensions of the human development index (income, education and life expectancy). However, external debt exhibits an adverse effect on economic development, consistently yielding negative outcomes for life expectancy, education and income.Practical implicationsBased on these findings, the authors recommend that SSA economies implement appropriate policies, such as reducing bureaucratic requirements and addressing corruption, to enhance domestic capital investment. Additionally, efforts should be directed toward channeling contracted debt into productive sectors like road construction and electricity provision.Originality/valueThis study is among the first to assess the impact of domestic investment and external debt on the three dimensions of human development outlined by the UNDP. Furthermore, it employs a robust econometric method that considers cross-sectional dependence (CD).

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“…The study is anchored on some stated theories. Accordingly, we examined Rostow's (1967) Stages of Economic Growth Model of Public Expenditure and Wagner's (1975) Law of Increasing State Activity. These theories are particularly necessary as we deal with Public Finance and Growth.…”

Section: Theoretical Reviewmentioning

confidence: 99%

“…In order to finance this level of public expenditure, the tax must be imposed and strictly monitored to generate the needed funds. Rostow (1967) During the take-off stage, government investments in social overhead are complemented by investments made by the private sector. In the maturity stage, government expenditures are expected to fall while that of the private sector increase.…”

Section: Economic Growth Model Of Public Expenditurementioning

confidence: 99%

Econometric Analysis of Taxation, Capital Formation and Economic Growth in Nigeria

Dr. Davis Ojima,

Dr. Ngozi Ojima,

Dr. Osmond N Okonkwo

2023

theijhss

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The study examined the link between Taxation, Capital Formation and their implication for Economic Growth in Nigeria. The study objective is against the background of the need to mobilize revenue to shore up the much-needed capital stock and infrastructure for economic growth. It employed descriptive statistics, Unit Root and ARDL to estimate the short and long-run correlation among the variables selected for the study. Findings arising from the study indicate a significant and negative relationship between inflation, taxation and economic growth in Nigeria. Similarly, there is a positive and significant correlation between broad money and Real Gross Domestic Product which implies that taxation and inflation negatively impact economic growth in Nigeria. Policy recommendation based on the findings includes the following: Government should ensure an efficient tax collection process and encourage investment in the Private Sector by reducing the tax burden on them.

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Impact of Inflation Rate on the Economic Growth in Nigeria

Cited by 9 publications

References 3 publications

Impact of inflation on economic growth: evidence from Nigeria

Impact of inflation on economic growth: evidence from Nigeria

A multidimensional appraisal of domestic investment, external debt and economic development nexus: evidence from SSA

Econometric Analysis of Taxation, Capital Formation and Economic Growth in Nigeria

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