Philip O. Alege

Fuel Subsidy Reform and Environmental Quality in Nigeria

The study examines the existence of a long run effect of fuel subsidy reform on environmental quality in Nigeria for the period of 1970-2012 using the Johansen and the Engle–Granger two step co-integration procedure techniques. The study developed a three case scenarios including: (i) A case of subsidy payment, (ii) a case of effective subsidy and, (iii) a case of no subsidy payment. Findings from the study supported evidence of a long run sustainable equilibrium model. Also, our estimation results showed that the first and the last case scenario do not significantly influence environmental quality. This implies that subsidy payment in Nigeria does not enhance access and consumption of liquid fuel. On the other hand, the interaction of sound regulatory framework with subsidy payment (the case of effective subsidy) significantly exerts a responsive influence on environmental quality.

Trade-Exchange Rate Nexus in Sub-Saharan African Countries

This study explores international trade–exchange rate interaction in sub-Saharan African (SSA) countries. Based on partial equilibrium analysis, we develop two equations for export and import in which exchange rate, real gross domestic product (GDP), stock of capital and technology are the independent variables. The results from empirical analyses show that export and import are inelastic to changes in exchange rate. It follows that depreciation of currencies in the region may not have the expected results in view of the structure of the economies and export compositions. In the same vein, depreciation would not depress imports but only aggravate balance of payments. Thus, in the light of the findings, a policy of exchange rate stability that hinges on long-run considerations, capital accumulation and technological capacity as well as the maintenance of comprehensive coherent macroeconomic packages remains a critical factor in ensuring that exchange rate policy performs its central role as a trade facilitation tool.

Energy Supply and Climate Change in Nigeria

The energy industry has been identified as one of the sectors most vulnerable to the impact of climate change. In the past years, government had been making a lot of effort at reforming the energy sector and this study attempted to investigate the extent to which the energy sector will be affected in the face of the threats presented by a changing climate. The study seeks to examine the impact of climate change on energy supply in Nigeria for the period 1971-2011 using the vector error correction procedure. We adopted the Johansen and Juselius, and Engle-Granger co-integration analysis to determine the rank of the series long run co-integration. Also the error correction model was used to obtain the long-run estimates and the speed of error adjustment. We corroborate our findings by adopting the Wald exogeneity test to examine the direction of causal relationship between climate change and energy production. The study found a positive relationship between climate change and energy supply, as well as no evidence of causal relationship between climate change and energy supply. The study developed an interaction of climate change and measure of institutional quality, though less responsive to energy supply, but exhibits similar pattern with the actual climate change. Also, the indicators of power losses, technology and investment impacts a significant negative influence on energy supply, while GDP per capita and economy structure exerts though positive but the indicator of economic structure was statistically insignificant in explaining dynamism in energy supply. The findings from our empirical investigation puts caution on economic advisers and policy makers on the level of adherence to the Kyoto protocol in order not to jeopardize productivity activities and economic gains. Also,adaptation efforts should however follow careful scenario analysis with a strengthened institutional framework and injection of funds for technological improvement. This could be done in partnership with international organizations and the private sector

Knowledge-driven economic growth: the case of Sub-Saharan Africa

ABSTRACT The experience of South Korea, India, China and Singapore reveals that developing economies can fast-track development, leapfrog the stages of development and catch up with advanced economies by putting knowledge capital as the driver of development. If the knowledge economy is therefore an accelerant of development for both advanced and developing economies, it is possible for Sub-Saharan African (SSA) economies to also catch up with advanced economies. It was on this basis that this study assessed the knowledge capacity of SSA and the effect it has on its economic advancement. Given the importance of the interrelatedness among the knowledge economy elements, this study, thus, examined how the interaction effect between the elements of the knowledge economy affects economic growth in 32 SSA countries, for which data were available, over a period of 17 years (1996–2012). Using the System Generalised Method of Moments (SGMM), the study found out that institutions and human capital in SSA mitigate the effect of innovation on economic growth in the region, thus, making it a lean knowledge economy.

An Assessment of the Internet of Things (IoT) Adoption Readiness of Sub-Saharan Africa

A new and fast emerging shift in networking and communications is the Internet of Things. This new connectivity paradigm (according to industry and academic analysts) is expected to fully mature by the year 2020. A number of industry giants have already created platforms both for production and deployment of devices, processes and services aimed at maximizing the opportunities accruable from this new development. The developing economies of Sub-Saharan Africa (SSA) have a unique opportunity to join in the Internet of Things race at the developmental stage. Their ability to maximize the benefits of this early participation in a novel technological trend will, however, be determined by their level of preparedness both technologically and policy wise. A measure of the readiness of Sub-Saharan African states for the adoption of the IoTs becomes of imperative importance. We present, in this study, a preliminary assessment of the preparedness of SSA economies for the adoption of the IoTs as a background for a more detailed work on a proposed index ( @-IoT Index ) for measuring in quantitative terms the preparedness level of States for IoT adoption.

Creating a Local Learning Economy

Innovation studies at the national and sectoral level in various African countries show that local learning networks are very weak, despite the emphasis on collaborative learning in policy and practice. This paper uses new data and methodology from African Enterprise Surveys of the World Bank, in order to understand the key issues in promoting collaborative, learning networks at the local level, to promote firm-level learning.