Journal of Economics and Policy Analysis

Labour Market and Economic Growth in sub-Saharan Africa Countries

Nosakhare Liberty Arodoye — 2023-09-01

Labour market is an important institution for driving sustained and long-term growth in an economy. This study examined the relationship between labour market and economic growth for forty (40) sub-Saharan Africa (SSA) countries over the period of from 1991 to 2020. A dynamic panel data estimation technique was employed in the empirical analysis using the system Generalised Method of Moments approach. The results from the study reveal a strong positive effect of employment rate on economic growth in SSA. This implies that improvement in absorptive capacity of the labour market significantly improves economic activities in the region. There is however indication that inefficiency in the labour markets in SSA in terms of demand and supply of labour in the employment process has tended to derail the effectiveness of labour in the growth process. In particular, there is evidence that labour force participation rate weakens economic growth in SSA. Thus, while the demand side of the labour market appears to align with the broad relationship between the labour market and economic growth, the supply side essentially derails the relationship. The study therefore recommends that countries of the SSA region should strengthen employment growth by eliminating barriers in the productive sector, increasing aggregate productivity and ensuring stable macroeconomic environment. Excessive growth in youth population also needs to be addressed.

Alternative Strategy and Innovative Intervention for Street Trader Management in Lagos

Olasunmbo A. Olusanya — 2023-09-01

Traders line many streets in Lagos and are considered a menace to the city. These traders are a substantial segment of the informal sector, which employs up to 70 % of the working population. Yet traders on Lagos streets are susceptible to risks to health, auto accidents and extortions/multiple taxation. Therefore, based on data from 45 semi-structured interviews among street traders in Lagos, as well as Neil Brenner’s Critical Urban and Oscar Newman’s Defensible Space, this study examines existing street trader management in Lagos. The findings reveal that over half of the traders are male and make an average of N2500 ($6) per day. Also, about half of the respondents crave individual space to sell and believe that this will increase patronage. The results also indicate that traders are sometimes sick and unable to engage in trading activities due to dust inhalation, sunburn and malaria. The study concludes that an important overlooked street trader management solution for Lagos lies in innovative intervention and therefore recommends the adoption of a Sky-Market Concept which integrates the attributes of a pedestrian bridge and street stalls, especially at major transportation nodes where trading activities tend to spill onto the road thereby impeding the flow of vehicular traffic. This study has advanced the literature on street trading by advocating the adoption of a special progressive model for street trader management in Lagos.

The effect of Exchange Rate on Output Gap in Nigeria

Bukola Bunmi Baruwa — 2023-09-01

Economic theory highlights that exchange rate volatility influences the divergence between actual and potential output levels. Despite basic facts in theories, policymakers and monetarists in Nigeria pay inadequate cognizance to the link between OUG and trends in Exr. On the other way round, in advanced countries, the efficacy of monetary policy tools on OUG has exhaustively been examined, with deductions guiding accurate economic and policy decisions. In a bid to address the gap in Nigeria, this paper scrutinizes the possible effects of Exr on the output gap from 1994 to 2023, using an ex-post facto research design. The study utilized annual time series data obtained from the Nigerian Bureau of Statistics, the CBN Statistical Bulletin and the World Bank’s World Development Indicators. Autoregressive Distributed Lag (ARDL) technique was employed to analyse data based on its robustness and clarity in estimating relationships both in the short-run and long-run. Results of the findings revealed that fluctuations in Exr affected the OUG negatively both in the short-run (with coefficient -0.0745) and the long-run (with coefficient -0.1391); with statistical significance. This implies that instability in the exchange rate contributed to a wide output gap during the period considered. Sequel to these findings, this study inferred that effective exchange rate management and stable monetary supply policies are necessary to achieve sustainable output growth and forestall the output gap in Nigeria. The government needs to implement strategies that will stabilize the exchange rate and ensure its alignment with broader macroeconomic objectives.

Clean Energy Access, Renewable Energy Consumption and Environmental Sustainability: An Impact Analysis for Sub-Sahara African Countries

Afolabi Quadri Balogun — 2023-09-01

This study investigates the impact of clean energy access (EA) and renewable energy consumption (REC) on environmental sustainability in Sub-Saharan African (SSA) countries using secondary data from 48 SSA countries from 2016–2022. The system GMM estimation technique was adopted in this study. The results show that both EA and REC significantly reduces environmental sustainability, indicating that increasing the use of renewable energy and expanding access to clean energy can effectively reduce carbon emissions (CO2) in the region. The study suggests improving energy access and renewable energy utilization by putting supportive policies into place and investing in local capacity building for the planning, design, installation, and maintenance of renewable energy systems.