Economics
Idongesit Edem Udoh; Ubong Edem Effiong; John Polycarp Ekpe
Abstract
The main objective of this study was to empirically examine the influence of globalization on income inequality in Nigeria from 1986 to 2021. The income inequality was represented by the Gini coefficient while globalization was measured by key indices like foreign direct investment, remittances, and ...
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The main objective of this study was to empirically examine the influence of globalization on income inequality in Nigeria from 1986 to 2021. The income inequality was represented by the Gini coefficient while globalization was measured by key indices like foreign direct investment, remittances, and trade openness. With the use of the autoregressive distributed lag (ARDL) approach which was as a result of the stationary of our series at levels and first difference as reported by the Augmented Dickey-Fuller unit root test, the study observed that a long-run relationship exists amid inequality and measures of globalization. In the short-run, it was realized that foreign direct investment, remittances, trade openness, and urbanization aided in reducing income inequality in the short-run while inflation accelerated income inequality within the study period. In the long-run, the only measure of globalization that significantly reduce income inequality is remittances; while foreign direct investment significantly increased income inequality in the long-run. the paper concluded that it is not inevitable that measures of globalization have different influence on inequality of income and wealth depending on time.
Economics
Ubong Edem Effiong
Abstract
The attempt in this study has been to detect the influence of foreign exchange reserves on import demand in Nigeria. With data spanning from 2000 to 2020, we estimated the long-run and short-run import demand function using ‘fully modified ordinary least squares’ and ‘error correction ...
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The attempt in this study has been to detect the influence of foreign exchange reserves on import demand in Nigeria. With data spanning from 2000 to 2020, we estimated the long-run and short-run import demand function using ‘fully modified ordinary least squares’ and ‘error correction model’ respectively after we established that our variables were integrated of the first order and that cointegration exists. The long-run import demand function pointed out that the effect of foreign exchange reserves on import demand is positive but insignificant but such effect turned negative and significant in the short-run. Import price was also noted to put forth a negative sway on import demand with its effect being significant. Income was observed to wield a positive long-run influence on import demand while the effect of exchange rate was positive and significant in the long-run but became negative and significant in the short-run. By the elasticity coefficients, income elasticity put forth a greater influence on import demand compared to every other variable with the coefficient being greater than unity. It therefore becomes pertinent for actions toward reducing the income coefficient to less than or equal to one to be instituted. It is critical that import demand management be regarded as an aspect of an inclusive stabilization strategy. Imports should be targeted as part of this effort to compensate for shortfalls in domestic production. Furthermore, strategies that reduce government spending or raise taxes (contractionary fiscal policy) could reduce income growth which is a chief driver of import demand.