Government Expenditure and Economic Growth in Nigeria

Government Expenditure and Economic Growth in Nigeria

Government Expenditure – Economic growth represents the expansion of a country’s potential national output or potential real GNP; the expansion of economic power to produce (Ukwu, 2004). Without some kinds of economic growth, developing countries cannot extricate themselves from the quagmire of primordial poverty. Thus, these countries usually pursue fiscal policy to achieve accelerated economic growth. The term fiscal policy refers to the use of fiscal instruments (such as taxation and spending) to influence the working of the economic system in order to maximize economic welfare (Tanzi, 1994). The main objective of fiscal policy in less developed countries should then, be promoting long term growth of the economy. [Read more…]

Globalization and Economic Development in Nigeria

Globalization and Economic Development in Nigeria

This chapter deals with the review of relevant literature.
In carrying out these research studies, which includes, articles, seminars paper, newspaper, text books etc.
The review materials are grouped under the following headings:
1.    Positioning Nigeria for development in an era of globalization
2.    The challenges of globalization
3.    Globalization and economic development
4.    Obstacles to economic development
5.    Benefits of globalization [Read more…]

Deregulation of the Downstream Oil Sector in Nigeria

Deregulation of the Downstream Oil Sector in Nigeria

According to Hornby (2001:313), deregulation is the freeing of a trade or business activity from rules and controls. In his own view, it is the determination of price by the interplay of demand and supply. It means the withdrawal of government control of resources allocation mechanism, thereby allowing the forces of demand and supply to determine the prices of goods and services (Obioma 2000). [Read more…]

Capital Market Structure and Development in Nigeria

Capital Market Structure and Development in Nigeria- Using the Nigerian Stock Exchange as a Case Study

Capital market in Nigeria has been in existence from time immemorial before the colonial era in the form of light capital market.According to Mohammed (1998) capital market is a place where investment decisions among savers users of funds are taking the market constitutes of major investment decision instrument of a capital economy.

Stock exchange developed it’s root the middle ages. In those days, bourgeoning trade in agriculture and commercial commodities was developing in some of the European countries. It was the practice in these trader that geared individual traders together at a place in appointment days to strike bargains in commodities. [Read more…]

Stock Market Development: Its Impact on the Economic Growth in Nigeria

Stock Market Development: Its Impact on the Economic Growth in Nigeria

In examining the relationship between stock market development and economic growth, it is important that we throw light on some key concepts that will enhance a better understanding of the study.  These are the concept of stock market and the concept of economic growth and development.
The Stock Market
The Collins Dictionary of Economics (2005) defines a stock market as a market that deals in the buying and selling of company stocks and shares and government bonds.  Similarly, according to the Wikipedia free encyclopedia, a stock market is a mutual organization which provides trading facilities for stock brokers and traders, to trade stocks and other securities.  Additionally, Armstrong (1977) describes the stock exchange as “a market wherein to buy and sell the world’s capitalized values”.  According to him, “it is the citadel of capital, the temple of values, the axle on which the whole financial structure of the capitalist system revolves.”  The purpose and duty of a stock exchange is to organize security trading so that process may be found in the best possible condition (Urban, 1990). [Read more…]