Open Access Original Research Article

The Impact of International Remittances on the Nigerian Economy

Joseph Chukwudi Odionye, Okwudili Beede Emerole

Journal of Economics, Management and Trade, Page 1-9
DOI: 10.9734/BJEMT/2015/13290

The study investigated the impact of international remittances on the Nigerian economy. The recent global surge in remittance flows and the twin consequences of migration and remittances on economic development have become contemporary topical issues. Thus the need to obtain evidence based information to drive policy formulation on the impact of remittances on the Nigerian economy. Following the behavioural pattern of the variables, we adopted Autoregressive Distributed Lagged model (ARDL) due to Pesaran and Shin [21] in the study. The result of the Auto Regressive Distributed Lagged (ARDL) model showed that international remittance inflow has positive and significant impact on the Nigerian economy. It further showed that there is a long run relationship between international remittances and the Nigerian economy. The ADF test suggested that the series in the model are random walk processes in their level form. The CUSUM and CUSUMSQ tests showed evidence of long run stability of the parameters of the model.

Open Access Original Research Article

Impairment Analysis of Non-current Assets under DCF Based-test in the Jordanian Industrial Shareholding Companies

Mohammad Ebrahim Nawaiseh

Journal of Economics, Management and Trade, Page 10-22
DOI: 10.9734/BJEMT/2015/12880

Aims: To examine the significance differences between discounted operating cash flow associated with non-current assets and the impairment loss for 2005 compared to 2006, 2006 compared to 2007, 2007 compared to 2008.Moreover,estimating value in use through future cash flows attributable to the asset under DCF Based-test. To determine impairment trends by showing ratios of companies that have increasing trends, decreasing or fluctuated trends for the years 2005-2008.

Study Design: Data were collected for the period 2005 to 2008 from Annual reports issued by Amman Stock Exchange (ASE) of the selected industrial public shareholding companies. For this study, 30 industrial companies impaired their non-current assets were selected out of 73 working Jordanian industrial companies during the study period; Descriptive statistic has been used in this study, in addition to Wilcoxon Signed Ranks Test.

Results: Based on the financial data in the companies’ financial reports, about (58.9%), or 30 companies, apply asset impairment accounting. For companies implement IAS (36), impairment loss should be recognized, measured, and disclosed separated from depreciation. Impairment loss can be affected by discount rate, and future cash flows.

Open Access Original Research Article

Working Capital Management and the Performance of Selected Deposit Money Banks in Nigeria

Adebimpe Otu Umoren, Ekubiat John Udo

Journal of Economics, Management and Trade, Page 23-31
DOI: 10.9734/BJEMT/2015/15132

The impact of working capital management on the liquidity and profitability of select deposit money banks in Nigeria was the main focus of this work. Ex-post facto research design was adopted for the study. Taro Yamane’s statistical formula was used to determine the sample size of ten out of twenty two deposit money banks in Nigeria. Purposive sampling technique was used to select the samples. Two hypotheses were formulated to guide the study and were analyzed using descriptive statistics, Pearson’s correlation coefficients and Regression analysis. The findings showed that there is significant positive relationship between banks’ performance and bank size; there is a significant negative relationship between profitability and cash conversion cycle and leverage; there is a significant negative relationship between liquidity and creditors’ payment period and leverage; and there is a significant positive relationship between liquidity and debtors’ collection period, cash conversion cycle and credit risk. It is recommended that the Central Bank of Nigeria should review the minimum capital requirement to N50 billion and banks in ‘trouble’ should be advised to merge or to be acquired by other mega bank(s).

Open Access Original Research Article

Location of a Competitor and the Regional Innovation Activity of Industrial Systems in Transition Country–Poland’s Case Study

Arkadiusz Swiadek

Journal of Economics, Management and Trade, Page 45-54
DOI: 10.9734/BJEMT/2015/14355

Aims: Spatial proximity with competitive enterprises is a factor influencing the acceleration of the technological progress in industrial systems in the most developed countries, but is it like that also in Poland? The main objective of the conducted studies was the identification of the effect of distance from the nearest competitor on the innovation activity of the selected regional industrial systems in Poland.

Study Design: Surveys were conducted in the years of 2007-12 on a group of 2 434 industrial companies in four diverse provinces located in different parts of the Poland-Masovian, Greater Poland, Silesian and Swietokrzyskie.

Place and Duration of Study: Faculty of Economics and Management (university in Zielona Gora), between October 2007 and June 2012.

Methodology: The methodical side of analyses was based on the theory of probability – the probit modelling.

Results: The obtained results of the analyses indicate, that both the location and the current level of the economic development of the analysed provinces do not influence the diversity of the innovation activity of the regional industrial systems. Therefore, the discussed regularities in Poland have the system nature (against isolated nature). The challenge to creating cluster structures and facilitate their development in Poland in the horizontal approach, taking into account the obtained results of studies, will be extremely difficult to achieve. The knowledge deficit and low own abilities create areas of local system technological gaps – impossible to take innovation action between competitor in the local spatial proximity. The regional level in any case did not show significant statistical co-dependencies, what proves that this level of aggregation currently remains neutral for the implementation of the innovation activity. Just the beyond regional distance from nearest competitor (especially international) allow the acceleration of innovation processes. So, industrial enterprises in Poland are much more connected to the international innovation networks, than are depending on local or regional technological trajectories.

Conclusion: The obtained research results indicated a different effect of the spatial proximity of competitors in Polish regions on the innovation activity of the industrial systems compared to the most developed countries. A new showing up technologies should improve that image of our future. Strong international connection will be more important for innovation activity and knowledge flow in Poland, than close physical distance to the potential collaboration firms.

Open Access Original Research Article

An Empırıcal Investigation of the Contributıon of Agriculture, Petroleum and Development of Human Capital to the Economıc Growth in Nıgeria, 1970-2012

Charles Uche Ugwuanyi, Matthew Abula

Journal of Economics, Management and Trade, Page 55-62
DOI: 10.9734/BJEMT/2015/14856

An empirical investigation of the contribution of agriculture, petroleum, human capital to the economic growth in Nigeria were carried out in this paper by employing cointegration test, Granger causality test and ordinary least square techniques, using the data of annual time series for the period 1970-2012. The findings reveal the existence of 3 cointegrating vectors which show a long-run relationship among the variables in the series used. The Granger causality test shows that there is a bi-directional causality among the variables. The OLS results show that agriculture and petroleum contribute to output growth positively and significantly, while human capital contributes to output growth negatively but insignicantly. Thus, if a policy aims at sustaining a high rate of economic growth in Nigeria, the priority should be given to the development of human capital in the budgetary and development policies. An effective coordination of these variables and a good policy mix to avoid lopsidedness will ensure a high and sustainable economic growth since there is a        bi-directional causality between these variables.

Open Access Original Research Article

The Impact of Globalisation on the Growth of Nigerian Economy from 1960-2010: Error Correction Model Analysis

I. M. Shuaib, Ekeria O. Augustine, Ogedengbe A. Frank

Journal of Economics, Management and Trade, Page 63-73
DOI: 10.9734/BJEMT/2015/14698

The paper empirically examined the impact of globalization on the growth of Nigerian economy using times-series data from 1960 to 2010. The paper utilized secondary data and various econometrics and/or statistical packages analytical (View 7.2) method were explored to examine the link between the econometrics variables and their impact on the growth of Nigerian economy. The paper tested the stationarity, cointegration of Nigerian’s time series data and used error correction mechanism to determine the long run and short run relationship among the variables examined. The results of the findings supported the Obadan’s findings which proved that growth of external debt ratio was an inversely related to economic growth in Nigeria. The paper recommended based on the econometric results that government should link the domestic investors with world markets to spur them into domestic production. Government should encourage grassroot production through Small and Medium Enterprises (SMEs), Government should spend more on infrastructural development. Government should encourage the import substitution initiative through the availability of short and long term credit facilities at a relative cheaper rate and strengthening both financial and capital markets in order to boost the confidence of potential investors on source of start-up capital.

Open Access Short Research Articles

The Significance of International Financial Reporting Standards to Emerging Economy of Nigeria

Jones Osasuyi Orumwense

Journal of Economics, Management and Trade, Page 32-44
DOI: 10.9734/BJEMT/2015/13198

This paper explores the relevance of International Financial Reporting Standards (IFRS) to emerging economies in general and Nigeria in particular. The research uses evidence from interviews conducted with senior officers from two Big Four accountancy firms in Nigeria and prior studies exploring IFRS implementation of IFRS in emerging economies to shed light on the influence of complex economic, institutional, cultural and social factors influencing accounting. The findings suggest that accounting practices in Nigeria are dominated by the historically inherited institutionalized accounting system of the old Nigerian era, when accounting information was primarily geared towards meeting the needs of government agencies such as Statistics Committee and tax authorities. The main problems of implementing IFRS in Nigeria were pressures to comply with tax codes, too much power vested in government organizations as opposed to accounting profession, lack of IFRS expertise, deficient enforcement mechanisms and expectation of tax authorities that accounting standards should mimic tax codes. The findings are limited to questioning the relevance of IFRS to emerging economies and have implications for policy makers contemplating to adopt IFRS in those countries. This paper provides some insights into the benefits and drawbacks of IFRS adoption and would be of interest to those in the field.