Ebere Ume Kalu, Pius Bala Daniel, Uchenna Florence Nwafor, Chinwe R. Okoyeuzu, Okoro E.U. Okoro and Elizabeth U. Okechukwu
The main aim of this study was to examine whether any relationship exists between energy consumption and value added of the agricultural and industrial sector as well as the…
Abstract
Purpose
The main aim of this study was to examine whether any relationship exists between energy consumption and value added of the agricultural and industrial sector as well as the overall growth rate of the Nigerian economy.
Design/methodology/approach
The study used annualized time series data from 1971 to 2014 drawn from the World Bank Development Indicators, adopting an autoregressive distributed lag technique in the data analyses as well as the bound test and error correction representation.
Findings
There is a very strong evidence of the existence of a long-run relationship between energy consumption and indicators of economic growth. There are very strong proofs that economic growth and agricultural value added adjust to the shocks and dynamics of the studied energy-consumption-related variables while manufacturing value added proved otherwise.
Originality value
No study to the best of our knowledge has brought together aggregate growth, agricultural value added and manufacturing value added in the investigation of the energy consumption and economic growth nexus in one study using the Nigerian stylized economic environment. This represents the value added of this study and shows its originality.
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Leonard Onyiriuba, E.U. Okoro Okoro and Godwin Imo Ibe
The purpose of this study is to identify and review strategic government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. Four factors dictated the…
Abstract
Purpose
The purpose of this study is to identify and review strategic government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. Four factors dictated the choice of these countries. In the first place, the study is set in African emerging markets – and the four countries are the widely acknowledged emerging markets in Africa (Onyiriuba, 2015). Secondly, the spread of the countries, to a large extent, mirrors Africa in general – Egypt and Morocco are in North Africa; Nigeria is a West African country; and, of course, South Africa. Thirdly, other countries in Africa tend to look up to the four countries, apparently as the largest economies in their respective regions. Needless to say, Nigeria alternates with South Africa as the largest economy in Africa. In this capacity, the two countries influence – indeed, mirror – continental Africa's emerging economic progress. Fourthly, lessons from agricultural policy and financing experiences of the four countries will certainly be useful to the other African countries. The specific objective of this paper is to determine how the government seeks to address the financing issues attendant on the risk-laden nature of agriculture through policy interventions. With this end in view, the paper analyses the strategic goals, objectives and beneficiaries of the agriculture financing policies of the government, as well as the constraints on access to finance by the farmers and the policy response.
Design/methodology/approach
The study involves a review of empirical literature and government policies on agricultural financing in Egypt, Morocco, Nigeria and South Africa. The high risks in agriculture (Onyiriuba, 2015; Mordi, 1988), risk aversion behaviour of banks towards agricultural financing (Onyiriuba, 2015, 1990), and the reluctance of insurers to take on agricultural risks (World Bank, 2018; Federal Republic of Nigeria, 2016; Onyiriuba, 1990; Mordi, 1988) underpin this methodology. There are two other considerations: the needs to find out how government seeks to address the financing issues in agriculture through policy intervention, and to avoid unwieldy research, one that combines government and institutional policy perspectives on agriculture financing. Thus the study is not approached from the perspective of banks and other lending institutions; neither does it combine government and institutional policy perspectives. It rather focuses on government policy in order to properly situate implications of the findings.
Findings
The authorities seek to get rid of bottlenecks, ease participation and redress constraints on access to finance in agriculture through policy interventions as a means of sustainable economic growth. The findings are characteristic of emerging markets, rooted in the transitional challenge of opening economies, economic reforms and the March of progress. However, with agriculture and natural resources – rather than industrialisation – as the main stay of their economies, the African emerging markets face an uphill task in their development efforts. This is evident in the divergent and gloomy pictures in which the literature paints their agricultural economies.
Practical implications
Government should gear financing policies to boost output as a means of ensuring food security. It should address risk aversion tendencies among the lenders and feeble credit guarantee, subsidies and budgetary allocations to agriculture. This will ensure effective commitment of the lenders to agriculture and underpin agricultural insurance. However, it demands strengthening links in the chain of access to, and monitoring of, credit for agricultural production. A realistic policy response should target the rural economy – with youth, women and smallholder farmers as ultimate beneficiaries. These actions should be intensified as measures to boost farming and the rural economy.
Originality/value
Current literature fails to situate the empirical findings in emerging markets context, reflecting economies in transition. Besides, in its current state, the literature does not explicitly clarify that agriculture, like most other sectors in such economies, is bound to experience the observed financing constraints. Neither does it clearly reflect how and why the findings should be seen as fleeting realities of the March of progress in transitional economies. This study will help to fill the gap.
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Olanrewaju Omosehin, Joseph Oseni, Adewale Olutumise and Evans Osabuohien
The economic importance of palm oil produced by its producers in food requirement, income generation, production and consumption has led to a significant increase in its demand…
Abstract
The economic importance of palm oil produced by its producers in food requirement, income generation, production and consumption has led to a significant increase in its demand over the years. Thus, this chapter evaluates the effects of palm oil price fluctuations on the welfare of palm oil producers in Nigeria based on annual time series data (1980–2018). In achieving its objectives, the study employs Autoregressive distributed lag model (ARDL). The result establishes the presence of a long-run relationship in the welfare of palm oil producers. The long-run estimates show that palm oil prices had a positive but insignificant relationship with the welfare of palm oil producers. In the short-run estimates, palm oil price and the exchange rate had adverse and significant effects on the welfare of palm oil producers, while the inflation rate positively and significantly influenced welfare. Therefore, the welfare programme should adopt policies that will stabilise the palm oil price and other foodstuffs to increase the standard of living of palm oil producers and raise their literacy levels.
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Chi Aloysius Ngong, Kesuh Jude Thaddeus, Lionel Tembi Asah, Godwin Imo Ibe and Josaphat Uchechukwu Joe Onwumere
This research investigates the bond between stock market development and agricultural growth in African emerging economies from 1990 to 2020.
Abstract
Purpose
This research investigates the bond between stock market development and agricultural growth in African emerging economies from 1990 to 2020.
Design/methodology/approach
Agricultural value added to the gross domestic product measures agricultural growth and market capitalization and stock value traded measure stock market development.
Findings
The findings disclose that market capitalization negatively affects agricultural growth while stock value traded positively affects agricultural growth in the fully modified and dynamic ordinary least square techniques. The findings unveil bidirectional causality between labour and agricultural value added with unidirectional causality flow from agricultural value added to market capitalization and stock value traded.
Research limitations/implications
The governments should promote agricultural growth initiatives which stimulate stock market development. Effective methods required to encourage credit flow to the agricultural enterprises through the stock markets' intermediation should be promoted using aggressive policies which eliminate credit flow bottlenecks. Policy makers and regulatory authorities should implement policies which attract investors to the agricultural sector and encourage companies' listing in the stock markets. The capital market funding should be expanded to boost economic growth through agricultural value added.
Originality/value
Literature reveals divergent results on the relationship between stock market development and agricultural growth. Earlier studies provide conflicting findings on the bond between stock market development and agricultural growth. Some findings indicate positive link between stock market development and agricultural growth, while others show a negative association. Studies' results reveal opposing directions of causality between stock market development and agricultural growth.
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Mst Tania Parvin, Regina Birner and Ashrafun Nahar
The purpose of this study is to empirically estimate the impact of a government microcredit program on the handloom weavers to promote small and medium enterprises (SMEs) in…
Abstract
Purpose
The purpose of this study is to empirically estimate the impact of a government microcredit program on the handloom weavers to promote small and medium enterprises (SMEs) in Bangladesh.
Design/methodology/approach
The data were collected from 311 handloom weavers from the Sirajganj District of Bangladesh from July to December 2015 using a multistage sampling technique. The analysis was conducted using a two-stage least squares regression model incorporating instrumental variables to control for the probable endogeneity problem associated with the study.
Findings
This study finds that government microcredit had no significant impact on borrowers' investment in their business, whereas credit received from multiple sources other than government credit had a significant negative impact. Additionally, literacy level, household assets and the number of operational handloom units positively affected investment, while the number of non-operational handloom units and distance negatively affected the investment.
Research limitations/implications
This study's findings are more specific for the selected case and may not be generalizable to all kinds of SMEs.
Practical implications
The policy implications are targeted at increasing loan size based on the number of operational handloom units to improve the performance of government and other microcredit programs to facilitate the growth of SMEs in Bangladesh.
Originality/value
This study specifically focuses on estimating the financial performance of government microcredit programs for SME development within the handloom industry, which has not been sufficiently explored in the literature.
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Abraham Falola, Ridwan Mukaila and Kafilat Ololade Abdulhamid
The problem of inaccessibility of finance for farm investment is a common phenomenon among farmers, especially the rural dwellers. Thus, there is a need to know how the…
Abstract
Purpose
The problem of inaccessibility of finance for farm investment is a common phenomenon among farmers, especially the rural dwellers. Thus, there is a need to know how the accessibility of informal finance can be increased to increase farm investment. Therefore, this study evaluates farmers’ access to informal finance and its contribution to farm investment among rural farmers in Northcentral Nigeria.
Design/methodology/approach
A three-stage random sampling technique was employed to select 160 farmers. Primary data collected were analysed with descriptive statistics and the Heckman selection model.
Findings
The study revealed that cooperative society is the major informal means of loan acquisition used by the farmers followed by Rotational Savings and Credit Associations (RoSCAs). Informal loans contributed to agricultural investment through the various operational activities involved in production. Factors influencing farmers’ access to informal loans were the age, farm size and income of the farmers. Interest charged, farmers' age, farming experience, household size, education and loan duration were the drivers of the amount borrowed from the informal financing sector.
Practical implications
The findings of the study call for policies that will sustain informal financial institutions in developing economies, like Nigeria. Thus, the government through its regulatory agencies should assist informal finance providers with the necessary resources to achieve more goals. This is because the informal credit lenders help in bridging financial gaps created by formal financial institutions, such as commercial banks.
Originality/value
Unlike the previous research studies, this study investigated the driving factors of the amount borrowed from informal finance and its use in farm investment.
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Ebere Ume Kalu, Uchenna Florence Nwafor, Chinwe R. Okoyeuzu and Vincent A. Onodugo
The purpose of this study is to investigate the energy–growth linkage in sub-Saharan Africa (SSA), with emphasis on real sectors’ contribution to aggregate growth using dynamic…
Abstract
Purpose
The purpose of this study is to investigate the energy–growth linkage in sub-Saharan Africa (SSA), with emphasis on real sectors’ contribution to aggregate growth using dynamic panel estimation techniques that are practically and conceptually superior to the static models.
Design/methodology/approach
Dynamic panel econometric techniques pooled mean group, mean group and dynamic fixed effect were used to investigate the linkage among energy consumption, real sector value added and economic growth from 1967 to 2016 in 48 SSA countries.
Findings
A strong empirical evidence in favor of energy dependence and growth hypothesis in the investigated SSA countries was found. The finding that real sector value added and overall growth rate adjust reasonably to the shocks and dynamics of the energy consumption variables makes energy consumption an enabler for growth. This indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region.
Research limitations/implications
It is also important to note the policy implications of the high adjustment profiles indicated by the error correction representations. All the speeds of adjustment of the three models denominated in time are slightly above a year and are all within predictable limits (they fall below unity or 100%). We found that when agriculture value added, manufacturing value added and overall economic growth rate in our SSA panel estimation exceed equilibrium levels as a result of deviations arising from energy related variables, downward adjustments at 66%, 62% and 78% per year, respectively, take place.
Practical implications
The study indicates that well thought-out and implemented energy development policy will not only increase energy consumption but also elicit multi-sectoral growth while addressing the obvious energy deficiency in the SSA region.
Social implications
Much as this study has made some addition to the literature on energy-growth nexus in the SSA region, which undoubtedly is an unveiling of economic forces in a collection of developing and energy deficient economies, it will be of great research significance if the form and style of this study is adopted for other economic blocs in the shapes and sizes of the SSA region.
Originality/value
This study ensured currency of data, novelty of approach and disaggregated energy consumption into emerging sources, traditional sources and geographical access.
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Joseph Ikechukwu Uduji, Nduka Vitalis Elda Okolo-Obasi, Joy Ukamaka Uduji, Emeka Steve Emengini, Longinus Chukwudi Odoh, Deborah Patience Okoro and Chikodili Nkiruka Okafor
The purpose of this paper is to critically examine the multinational oil companies’ (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to…
Abstract
Purpose
The purpose of this paper is to critically examine the multinational oil companies’ (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on improving gender responsiveness of the cassava value chain (CVC) in the Niger Delta region of Nigeria.
Design/methodology/approach
This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 780 rural women respondents were sampled across the Niger Delta region.
Findings
The results from the use of a combined logit model and propensity score matching indicate that CSR of the MOCs using the GMoU model has recorded little but significant success in enhancing rural women’s participation in the CVC in the Niger Delta.
Practical implications
This implies that if CSR interventions are not tailored to enhance opportunities for women, they may contribute towards reducing the participation of women in economic, political and social development and, by extension, damping efforts of reducing poverty and achieving sustainable development goals (SDGs) in the Niger Delta.
Social implications
This suggests that MOCs’ CSR interventions in the CVC should consider gender relations to benefit men and women and alleviate household poverty.
Originality/value
This research contributes to the inequality debate in the agrifood value chain and inclusive growth literature from the CSR perspective in developing countries and the rationale for demand for social projects by host communities. It concludes that businesses has an obligation to help in solving problems of public concern.
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Mohamadreza Mahmoudi, Hannan Amoozad Mahdiraji, Ahmad Jafarnejad and Hossein Safari
The purpose of this paper is to identify critical equipment by dynamically ranking them in interval-valued intuitionistic fuzzy (IVIF) circumstances. Accordingly, the main…
Abstract
Purpose
The purpose of this paper is to identify critical equipment by dynamically ranking them in interval-valued intuitionistic fuzzy (IVIF) circumstances. Accordingly, the main drawbacks of the conventional failure mode and effects analysis (FMEA) are eliminated. To this end, the authors have presented the interval-valued intuitionistic fuzzy condition-based dynamic weighing method (IVIF-CBDW).
Design/methodology/approach
To realize the objective, the authors used the IVIF power weight Heronian aggregation operator to integrate the data extracted from the experts’ opinions. Moreover, the multi-attributive border approximation area comparison (MABAC) method is applied to rank the choices and the IVIF-CBDW method to create dynamic weights appropriate to the conditions of each equipment/failure mode. The authors proposed a robust FMEA model where the main drawbacks of the conventional risk prioritization number were eliminated.
Findings
To prove its applicability, this model was used in a case study to rank the equipment of a HL5000 crane barge. Finally, the results are compared with the traditional FMEA methods. It is indicated that the proposed model is much more flexible and provides more rational results.
Originality/value
In this paper, the authors have improved and used the IVIF power weight Heronian aggregation operator to integrate information. Furthermore, to dynamically weigh each equipment (failure mode), they presented the IVIF-CBDW method to determine the weight of each equipment (failure mode) based on its equipment conditions in the O, S and D criteria and provide the basis for the calculation. IVIF-CBDW method is presented in this study for the first time. Moreover, the MABAC method has been performed, to rank the equipment and failure mode. To analyze the information, the authors encoded the model presented in the robust MATLAB software and used it in a real sample of the HL5000 crane barge. Finally, to evaluate the reliability of the model presented in the risk ranking and its rationality, this model was compared with the conventional FMEA, fuzzy TOPSIS method, the method of Liu and the modified method of Liu.
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Johnson Okoro, Tobechukwu Odionye, Benedicta Nweze, Martins Onuoha, Chinenye Ezeonwuka, Jude Owoh and Joel Nkire
This was a cross-sectional study to assess the psychological response to quarantine during COVID-19 pandemic and knowledge level about the disease among inmates of a Custodial…
Abstract
This was a cross-sectional study to assess the psychological response to quarantine during COVID-19 pandemic and knowledge level about the disease among inmates of a Custodial Center in Enugu, Nigeria. A total of 66 new prison inmates were assessed for psychological distress using the Kessler Psychological Distress Scale (K10); and inmates’ knowledge about COVID-19 using a COVID-19 Knowledge Questionnaire developed by the researchers.
Participants had a mean age of 28.39±8.71 years; 63 (95.5%) were male inmates and 3 (4.5%) were female inmates. Sixty-one (92.4%) were awaiting-trial inmates, 43 (65.1%) had psychological distress, and 35 (53%) had completed at least secondary school. COVID-19 questionnaire mean score was 3.82±3.33. Thirty-one (21.8%) had adequate knowledge of COVID-19 (7-10 score), while 35 (53%) and 10 (15.2%) had poor (0-3) and average (4-6) knowledge, respectively. Adequate COVID-19 knowledge level was significantly higher among those that completed at least secondary school (48.6%) than those who did not (12.9%). Though not statistically significant, adequate COVID-19 knowledge level was commoner among those without psychological distress (43.5%) than those with psychological distress (25.6%).
Considering responses to specific questions contained in the questionnaire, knowledge about some questions was relatively high. For example, a majority of the participants 45 (68.2%) correctly responded that death can be a complication of COVID-19; whereas half of them 33 (50%) correctly responded that regular hand washing with soap and water can help prevent the spread of the disease. Nevertheless, responses to some questions showed poor knowledge about the disease as 18 (27.3%) correctly answered that COVID-19 can affect the lungs, while 20 (30.3%) correctly responded that COVID-19 is caused by a virus.
Our study highlighted the need to have all quarantined persons educated about the disease for which they are being quarantined. It also provided the opportunity to raise awareness of COVD-19 among the inmates.