Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 January 2014 Vol. 3(1), pp 023-031

Copyright © 2013 Global Advanced Research Journals   

 

Original Research Articles

The Impact of Global Financial Crisis on Economic Growth on a Developing Economy. (An Instrumental Variable Regression Approach) 

Ande  Hemen1, Harley Tega Williams2, Abiodun Olaniyi

1Postgraduate Student, Department of Economics, University of Nigeria: hemen_ande@yahoo.com, +23480369415742Lagos Metropolitan Business School: harleytega@yahoo.com, +23480348162143Woodstock Electronics Limited  biodoon@gmail.com +2348027153724 Accepted 08 January 2014

Accepted 06 November 2013


Abstract

The recent Global financial crisis went a long way to revalidate the business cycle theory and therefore reminded us of its possible re-occurrence. However to answer the question of whether this crisis affected the Nigerian economy, is the objective of this study. The specific objectives of this study were therefore to investigate the effect of the global financial crisis on economic growth, consumption and investment. With the aid of data from the World Bank indicators and the National Bureau of Statistics the study covered the period 1981 to 2011. To attain therefore mentioned objectives, the study used the Zivot Andrews test to check the strongest point of the structural break and then instrumental variable regression and OLS with dummy effects to test the significance of the crisis. The result suggests that 2009 was the structural break point according to the Zivot Andrews test. And further opine that the Global financial crisis affected Economic growth, consumption and investment negatively, but is significant only on investment and not significant on consumption and Gross Domestic Product. 

Keywords: Global Financial Crisis, consumption, investment, Economic Growth, Zivot Andrews, IV, OLS.

Related Articles


Original Research Articles
Sudhanva V. Char
Distributive justice: Cognitive Preferences and Jarring Priorities
Glo. Adv. Res. J. Manage. Bus. Stud. May 2016 Vol: 4(3): - [Abstract] [Full Text - PDF] (523 KB)
Eze Onyekachi R and Okparaka Vincent CJ
Causal and Long-Run Relationship between Foreign Capital Inflow and Domestic Savings in Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. November 2017 Vol: 6(7): - [Abstract] [Full Text - PDF] (305 KB)
Mohammed Hussein T, Wazen Shbair M, Lina Mghari J, Samera Bader M
Electricity Distribution Scheduling For Gaza Strip Using Genetic Algorithm
Glo. Adv. Res. J. Manage. Bus. Stud. January 2013 Vol: 2(1): - [Abstract] [Full Text - PDF] (1,176 KB)
Nurcan Kilinc Ata
The Impact of Government Policies in the Renewable Energy Investment Developing a Conceptual Framework and Qualitative Analysis
Glo. Adv. Res. J. Manage. Bus. Stud. February 2015 Vol: 4(2): - [Abstract] [Full Text - PDF] (348 KB)
Al-Hasawi ZM and Hussein HK
Groundwater investigation in Rabigh Governorate, West of Saudi Arabia
Glo. Adv. Res. J. Manage. Bus. Stud. July 2012 Vol: 1(4): - [Abstract] [Full Text - PDF] (610 KB)
Iyanda AA
Serum activities of anti-oxidant enzymes and possible involvement of genetic factor in androgenetic alopecia in male Nigerian subjects
Glo. Adv. Res. J. Manage. Bus. Stud. June 2012 Vol: 1(5): - [Abstract] [Full Text - PDF] (171 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Ande Hemen on Google Scholar
Ande Hemen on Pubmed
Harley Tega Williams on Google Scholar
Harley Tega Williams on Pubmed
Abiodun Olaniyi on Google Scholar
Abiodun Olaniyi on Pubmed

Statistics

Viewed 1282
Printed 375
Downloaded 3066
Powered By iPortal Works