Udoma Johnson Afangideh, Augustine Ujunwa and Angela Ifeanyi Ukemenam
Persistent wave of armed conflicts – militancy and terrorism – and the mono-cultural structure of the Nigerian economy, as well as extensive reliance on revenue from crude oil…
Abstract
Purpose
Persistent wave of armed conflicts – militancy and terrorism – and the mono-cultural structure of the Nigerian economy, as well as extensive reliance on revenue from crude oil, highlights how external vulnerabilities, weakening internal structure and insecurity could significantly exacerbate public revenue loss. Understanding the nature, trend and impact of these factors on government revenue is one of the questions that still remain unsolved. The purpose of this paper is to examine the impact of global oil prices, militancy and terrorism on government revenue in Nigeria.
Design/methodology/approach
The study focusses on the state-failure and frustration-aggression hypotheses to explain the nature and trend of armed conflicts in Nigeria. The autoregressive distributed lag (ARDL) model is used to examine the effect of global oil prices, militancy and terrorism on government revenue.
Findings
The study reveals that crude oil price, terrorism and militancy have significant negative effect on government revenue in short- and long-run Nigeria. Evidence from the study therefore supports the theory that macroeconomic fluctuation is largely determined by endogenous and exogenous factors in Nigeria.
Research limitations/implications
In view of this review, future studies should empirically analyse the interactive impact of militancy, terrorism and global oil prices on government expenditure or a combination of government revenue and expenditure.
Originality/value
The study provides evidence on the role of internal and external factors on macroeconomic fluctuation, and recommended appropriate suite of policies that could mitigate external and internal vulnerabilities, especially during upsurge in armed conflicts.
Details
Keywords
Udoma Johnson Afangideh, Tuwe Soro Garbobiya, Farida Bello Umar, Nuruddeen Usman, Victor Unekwu Ocheni and Sanusi Muhammad Yakubu
This paper is focused on determining the asymmetric effects of exchange rate on money demand function in Nigeria.
Abstract
Purpose
This paper is focused on determining the asymmetric effects of exchange rate on money demand function in Nigeria.
Design/methodology/approach
It employs the empirical model of Baumol–Tobin. Baumol (1952), which was founded on the opportunity and transaction cost of holding money. Monetary aggregates, M1, M2 and M3, are used for the real money balances based on the nonlinear Autoregressive Distributed Lag bound testing procedure.
Findings
The results indicate that the positive and negative partial sum of exchange rate changes differ in magnitude and size, supporting the hypothesis of asymmetric effects of exchange rate changes on the demand for money in Nigeria.
Originality/value
This is the first paper to consider the new broad money aggregate (M3).