The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)

Mustapha Abiodun Okunnu; Matthew Iwada Ekum; Oluwaseun Raphael Aderele

doi:doi:10.11648/j.ajtas.20170606.19

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The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)

Mustapha Abiodun Okunnu, Matthew Iwada Ekum, Oluwaseun Raphael Aderele

Published in American Journal of Theoretical and Applied Statistics (Volume 6, Issue 6)

Received: 21 March 2017 Accepted: 10 April 2017 Published: 24 December 2017

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Abstract

According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment. The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.

Published in	American Journal of Theoretical and Applied Statistics (Volume 6, Issue 6)
DOI	10.11648/j.ajtas.20170606.19
Page(s)	325-334
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Econometrics, Dynamic Multiple Linear Regression, GDP Per Capita, Explanatory Variable, Dependent Variable

References

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[2]	International Monetary Fund (IMF), (2016). World Economic Outlook (WEO).
[3]	Obstfeld, M. (2016). A Spanner in the Works: An Update to the World Economic Outlook. Posted on July 19, 2016 by iMFdirect. Available at www.blog-imfdirect.imf.org.
[4]	Samuelson, P. A., Koopmans, T. C. and Stone, J. R. N. (1954). Report of the evaluative committee for Econometrical. Econometrical 22, 141–6.
[5]	Tranma, M. and Elliot, M. (2012). Multiple Linear Regression, Carthie Marsh Centre for Census and Survey Research. Pp 1.
[6]	Azeez, B. A, Kolapo, F. T and Ajayi, L. B. (2012). Effect Of Exchange Rate Volatility On Macroeconomic Performance In Nigeria. Interdisciplinary Journal of Contemporary Research in Business. Vol 4, no 1.
[7]	Hameed, I. and Ume, A. (2011). Title: Impact of Monetary Policy on Gross Domestic Product (GDP). Institute of Interdisciplinary Business Research. Pages: 1348-1361.
[8]	Antwi, S., Mills, E. F. E. A., Mills, G. A. and Zhao, X. (2013). Impact of foreign direct investment on economic growth: Empirical evidence from Ghana. International Journal of Academic Research in Accounting, Finance and Management Sciences. Vol. 3, No.1, January 2013, pp. 18–25.
[9]	Pineda, J. and Rodríguez, F. (2010). Curse or Blessing? Natural Resources and Human Development. United Nations Development Programme Human Development Reports Research Paper. June 2010.
[10]	World Bank Databank sources (2016): International Financial Statistics and data files and OECD GDP estimates. Balance of Payments databases, International Debt Statistics. IMF, World Economic Outlook, October 2016.
[11]	International Monetary Fund (IMF), (2016). International Financial Statistics and data files.
[12]	International Monetary Fund (IMF), (2016). International Financial Statistics and Balance of Payments databases.
[13]	Olubusoye, E. O. (2013) – Econometrics Model. Centre for Econometric and Allied Research at Ibadan.
[14]	Alaba O. O. (2012). “Regression and Analysis of Variance Note”. Statistics Department, University of Ibadan, Oyo State.
[15]	Harvey, A. C (1976). Estimating Regression Models with Multiplicative Heteroscedasticity, Econometrica, 44 (1976), Pp 461-466.
[16]	Baltagi, B. H. (1980). On seemingly unrelated regressions with error components, Econometrica 48, Pp 1547-1551.

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APA Style

Mustapha Abiodun Okunnu, Matthew Iwada Ekum, Oluwaseun Raphael Aderele. (2017). The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). American Journal of Theoretical and Applied Statistics, 6(6), 325-334. https://doi.org/10.11648/j.ajtas.20170606.19

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ACS Style

Mustapha Abiodun Okunnu; Matthew Iwada Ekum; Oluwaseun Raphael Aderele. The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). Am. J. Theor. Appl. Stat. 2017, 6(6), 325-334. doi: 10.11648/j.ajtas.20170606.19

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AMA Style

Mustapha Abiodun Okunnu, Matthew Iwada Ekum, Oluwaseun Raphael Aderele. The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). Am J Theor Appl Stat. 2017;6(6):325-334. doi: 10.11648/j.ajtas.20170606.19

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@article{10.11648/j.ajtas.20170606.19,
  author = {Mustapha Abiodun Okunnu and Matthew Iwada Ekum and Oluwaseun Raphael Aderele},
  title = {The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {6},
  number = {6},
  pages = {325-334},
  doi = {10.11648/j.ajtas.20170606.19},
  url = {https://doi.org/10.11648/j.ajtas.20170606.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20170606.19},
  abstract = {According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment. The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.},
 year = {2017}
}

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TY  - JOUR
T1  - The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)
AU  - Mustapha Abiodun Okunnu
AU  - Matthew Iwada Ekum
AU  - Oluwaseun Raphael Aderele
Y1  - 2017/12/24
PY  - 2017
N1  - https://doi.org/10.11648/j.ajtas.20170606.19
DO  - 10.11648/j.ajtas.20170606.19
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 325
EP  - 334
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20170606.19
AB  - According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment. The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.
VL  - 6
IS  - 6
ER  -

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Author Information

Mustapha Abiodun Okunnu

Department of General Studies (Economics Division), School of Communication & Liberal Studies, Lagos State Polytechnic, Lagos, Nigeria
Matthew Iwada Ekum

Department of Mathematics & Statistics, School of Pure & Applied Science, Lagos State Polytechnic, Lagos, Nigeria
Oluwaseun Raphael Aderele

Department of Mathematics & Statistics, School of Pure & Applied Science, Lagos State Polytechnic, Lagos, Nigeria

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APA Style

Mustapha Abiodun Okunnu, Matthew Iwada Ekum, Oluwaseun Raphael Aderele. (2017). The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). American Journal of Theoretical and Applied Statistics, 6(6), 325-334. https://doi.org/10.11648/j.ajtas.20170606.19

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ACS Style

Mustapha Abiodun Okunnu; Matthew Iwada Ekum; Oluwaseun Raphael Aderele. The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). Am. J. Theor. Appl. Stat. 2017, 6(6), 325-334. doi: 10.11648/j.ajtas.20170606.19

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AMA Style

Mustapha Abiodun Okunnu, Matthew Iwada Ekum, Oluwaseun Raphael Aderele. The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015). Am J Theor Appl Stat. 2017;6(6):325-334. doi: 10.11648/j.ajtas.20170606.19

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@article{10.11648/j.ajtas.20170606.19,
  author = {Mustapha Abiodun Okunnu and Matthew Iwada Ekum and Oluwaseun Raphael Aderele},
  title = {The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {6},
  number = {6},
  pages = {325-334},
  doi = {10.11648/j.ajtas.20170606.19},
  url = {https://doi.org/10.11648/j.ajtas.20170606.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20170606.19},
  abstract = {According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment. The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - The Effects of Macroeconomic Indicators on Economic Growth of Nigeria (1970-2015)
AU  - Mustapha Abiodun Okunnu
AU  - Matthew Iwada Ekum
AU  - Oluwaseun Raphael Aderele
Y1  - 2017/12/24
PY  - 2017
N1  - https://doi.org/10.11648/j.ajtas.20170606.19
DO  - 10.11648/j.ajtas.20170606.19
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 325
EP  - 334
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20170606.19
AB  - According to World Bank statistics reported in 2016, the Gross Domestic Product per capita (RGDP) in Nigeria was 2,548.20 United States Dollar (USD) in 2015. Also, Nigeria’s highest ever GDP recorded was 568.508 billion USD in 2014, with this exceptional growth in the economy, the World Bank and National Bureau of Statistics (NBS) and Central Bank of Nigeria (CBN) forecast GDP for 2016 to be very high but unfortunately, the GDP published by NBS and CBN as at June 2016 was 22.26 billion USD, which was the lowest ever since returning to democracy in 1999. This sharp fall in GDP reduced Nigeria GDP per capita drastically. It is based on this we employed Dynamic Multiple Linear Regression Model to fit a model of RGDP of Nigeria using some world development indicators as explanatory variables. Data was collected from 1970 to 2015 from World Bank database and National Bureaus of Statistics (NBS) on the six World Development Indicators (WDI), total Import, official exchange rate, broad money, inflation rate, total natural resources rents and foreign direct investment. The dynamic weighted least square (DWLS) was used rather than the dynamic ordinary least square (DOLS). The result of the analysis shows that imports of goods and services positively affect RGDP of Nigeria significantly, while other explanatory variables negatively affect RGDP significantly. Based on this result, we recommend that rather than closing boarder to imports of goods and services, we need to restructure the economy, so that, Nigerian made goods can compete favorably with the imported goods and services, thereby reduce importation naturally instead of forcefully halt importation.
VL  - 6
IS  - 6
ER  -

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