April 17, 2012

Re-examining The Determinants Of Current Account Balance In An Oil-Rich Exporting Country

The paper examines the determinants of
current accounts balance in Nigeria with emphasis on oil-related variables.

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Author:Eberechukwu Unezeand Maxwell EKOR

Publication Date:February, 2012

JEL Classification: F30, F32, F41

Keywords: Nigeria, current account; time series; saving & investment; Oil

This paper examines the determinants of current accounts balance in Nigeria with emphasis on oil-related variables, using the Johansen-Julius VAR co-integration estimation, the impulse response function and the variance decomposition analysis. The results show that oil price, oil balance and oil revenue are positively related with the current account, with only oil wealth having a significant negative impact in the long-run. We find that the impact of oil price on the current balance is only significant in the short-run. The variance decomposition analysis indicates that the variance in the current account is better explained by own shocks followed by shocks to oil price, oil balance and fiscal balance.



Employment Choice And Mobility In Multisector Labor Markets

This paper examines employment choice and occupational mobility using data from Ghana in a model that incorporates capital market failure, credit constrained individuals and draw self-employment capital from family asset.

Nigeria Economic Update (Issue 52)

Recently released population estimate figures by the Nigeria Bureau of Statistics, show a significant increase in Nigerias population, based on the 2006 census. Notably, total population grew by an estimated 40 percent from 2006, to 193 million persons in 2016. Also, disaggregate demographic data from 2007 to 2016, reveals an increase in the number of males (74 million to 99 million) and females (71 million to 95 million), with a 2016 gender (males to females) percentage ratio of 51:49. The high rate of population growth can be attributed to the improvements in average annual rate of natural increase the difference between crude birth rate and death rate. As in preceding years, the composition of children and youths make up the highest share of the population growth. This presents a potential increase in the rate of labour supply. Going forward, there is need for the government to support rapid job creation in order to check the potential upsurge in unemployment rate.

Nigeria Economic Update (Issue 14)

The considerable increase in inflation continued to be driven by exchange-rate-pass-through from imported items as well as the lingering scarcity in the availability of Premium Motor Spirit (PMS). One of the key ways to reduce inflationary pressures in the near term is to improve the supply of PMS to filling stations. In the medium to long term, the Nigerian National Petroleum Corporation (NNPC) may need to revitalize local refining and bridge the gap between the supply and demand for PMS by households and businesses.