This study simulates the effect of fuel subsidy removal on different categories of inflation in Nigeria using the novel dynamic simulated autoregressive distributed lag framework. Findings revealed heterogeneity in the inflationary effect of an increase in premium motor spirit price across locations, and that the recent fuel subsidy removal in Nigeria will have long-lasting negative inflationary effects.

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Authors: Isiaka Akande Raifu, Joshua Adeyemi Afolabi
 

With the widening saving-investment gap and the limited domestic financial resources to drive development imperatives in Sub-Saharan Africa (SSA), foreign direct investment (FDI) is considered a viable and sustainably promising option for boosting employment generation and closing gender gaps in employment. This paper provides critical insights into the gender and age-based employment effect of FDI in SSA and the role of institutional quality in shaping the relationship. The two-step generalized method of moments modelling framework was adopted to analyse relevant data of 29 SSA countries over the 2000-2021 period. The results revealed that FDI has a significant employment-enhancing effect irrespective of gender and age considerations. We also find that institutional quality amplifies this effect. Efforts should, therefore, be concentrated on improving institutional quality, the success of which will appeal to foreign investors and attract more foreign investments.

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AUTHORS:Isiaka Akande Raifu, Joshua Adeyemi Afolabi, Abdulkhalid Anda Salihu

Abstract 

Purpose – This study explored how institutional quality influences the relationship between military spending and education in Africa. 

Design/methodology/approach – This study used data from 43 African countries spanning the years 2000–2021. Two estimation methods were employed to address various issues: Fixed Effects with DriscollKraay standard errors and the Two-Step System Generalised Method of Moments. The Fixed Effects with Driscoll-Kraay standard error method was used to obtain reliable standard errors and inferences from the estimated coefficients of the fixed effects model. Meanwhile, the problem of endogeneity between military spending and education was addressed using the Two-Step System Generalized Method of Moments (GMM). 

Findings – The results indicated that military spending negatively impacts both the quality and quantity of education. However, both institutional quality and the interaction term (institutional quality*military spending) have positive effects on both measures of education, suggesting that better institutional quality mitigates the negative effect of military spending on education outcomes. 

Practical implications – This study shows that institutional quality dampens the negative effect of military spending on education, especially the quality of education. Hence, African countries should prioritize strengthening their institutions to ensure optimal allocation and utilization of government funds for the benefit of their citizens

READ MORE  - https://www.emerald.com/insight/content/doi/10.1108/jbsed-10-2023-0081/full/html

AUTHORS: Isiaka Akande Raifu, Damian Chidozie Uzoma-Nwosu and Alarudeen Aminu

This study investigates the role of institutional quality in the government expenditure-unemployment nexus in Nigeria using different components of government expenditures (total, recurrent, and capital expenditures). Causality tests and the autoregressive distributed lag estimation methods are used to analyse data spanning the period from 1984 to 2019. The key findings are as follows: (i) unidirectional causality runs from unemployment to total and capital expenditure and a partial unidirectional causality runs from recurrent expenditure to unemployment; (ii) total and capital expenditures are pro-employment in the long run, while the recurrent expenditure is only pro-employment in the short run; (iii) institutional quality is detrimental to employment in the long run; and (iv) institutional quality significantly moderates the impact of government expenditure on unemployment in Nigeria. The Nigerian government need to increase pro-employment expenditure and make concerted efforts at improving the institutional quality in Nigeria.

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Authors: Isiaka Akande Raifu, Alarudeen Aminu, Joshua Adeyemi Afolabi, Emmanuel Olubowale Obijole

With the widening saving-investment gap and the limited domestic financial resources to drive development imperatives in Sub-Saharan Africa (SSA), foreign direct investment (FDI) is considered a viable and sustainably promising option for boosting employment generation and closing gender gaps in employment. This paper provides critical insights into the gender and age-based employment effect of FDI in SSA and the role of institutional quality in shaping the relationship. The two-step generalized method of moments modelling framework was adopted to analyse relevant data of 29 SSA countries over the 2000-2021 period. The results revealed that FDI has a significant employment-enhancing effect irrespective of gender and age considerations. We also find that institutional quality amplifies this effect. Efforts should, therefore, be concentrated on improving institutional quality, the success of which will appeal to foreign investors and attract more foreign investments.

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Authors: Joshua Adeyemi Afolabi and Isiaka Akande Raifu