Premium Essay

Globalization and Macroeconomic Variables Performance in Nigeria

In: Business and Management

Submitted By sogbetuuns
Words 10565
Pages 43
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY For decades now, Nigeria has been experiencing disappointing performance in terms of growth in gross domestic product (GDP) and the general development of her economy. As a result, there’s no improvement in the level of poverty. In the 90s, came the era of globalization which connotes external opening and increased role of markets domestically (i.e. the market economy). To the developing world, market economy is a modern way of turning the economy around. The essence of globalization is to move the economy towards external liberation, focusing on market oriented economic system, export-led strategy and stabilization of the economy. In Nigeria, it was the era of structural adjustment programme in collaboration with the IMF and World Bank. The governments in the developing world, believes that it is more desirable to globalize which simply means to open up the economy and penetrate international markets. In time past, the world economy has undergone a fundamental shift towards an integrated and coordinated global division of labour in production and trade. In the 1950s and 1960s, productions were within national boundaries. The increase of oil prices in the late 1970s and the contractionary monetary policies of the United States during 1979 and 1982 period led to the increased interest rates and consequently indebted developing countries found they unable to service their debts. Continual refinancing was the only way to avoid default. By the end of the mid 1980s, there were both internal and external balances. Globalization is a term that is frequently used but seldom defined. It refers to the increase in the share of economic activity taking place across national boundaries. It is usually driven by a push towards liberalization of trade and investment regime. It minimizes the…...

Similar Documents

Premium Essay

The Role of Accounting Information in Assessing Corporate Performance in Nigeria.

...The Role of Accounting Information in Assessing Corporate Performance in Nigeria. May,2012. Table of content. Abstract. Section 1: Introduction 1.1 Background to study 1.2 Problem Analysis 1.3 Aims and Objectives of the study 1.4 Significance of the study. 1.5 Research Questions 1.6 Hypothesis 1.7 Scope and limitation of the study. Section 2: Literature Review 2.1 General Review of Relevant Literature. 2.2 Theoretical framework 2.3 Conceptual Scheme/ Model Section 3: Methodology 3.1 Data and Statistical Tools for Analysis. Section 4: Presentation of Data Analysis Section 5: Discussion of Findings Section 6: Summary and Conclusions References. ABSTRACT. This study is an attempt to examine the role of accounting information on corporate performance. We critically examine the relevant literature that investigates the role of financial accounting information as the direct and indirect use of externally reported financial accounting data in performance assessment. Specifically, we focus on the role of accounting data in prevalent control mechanisms (primarily in executive compensation contracts) and the underlying causes that led to the shift of contracts towards option awards. Accounting information are among the most effective tools to reduce the incidences of corruption, from its supply side, because they promote values such as accountability, transparency, fairness and responsibility...

Words: 4873 - Pages: 20

Premium Essay

Macroeconomics in Nigeria

...communities. In a world of technology, and improvements in science, there are little or no claims on the super natural powers on which these religions have grounded their morals on. Modern times have limited survival more often than not on our neighbours, than those far away from us. The rich have nothing to do with the poor and they disregard the dictates that religion sets for a better community life where one becomes a neighbour’s keeper. In earlier times, a lack of such help would have triggered acts such as robbery, killing, and jealousy without any mercy from the jury. Yet it is easy to help our neighbours in our community and beyond, including those whose conditions are critical than our present societal poorer neighbours. Thus, globalization of our community and utilizing our resources very well in order to promote justice and equity are what the global religion sends out through government sponsored programmes. However, the world has seen an exceptional steady rise in religion and its engagements in public organisations. There has been a re-emergence of religion as a major tool in today’s world political challenges leading to a debate on the competence of the world’s relation between secularization and modernity. Until the later end of the 20th century, social scientist generally accepted that there was a decrease in religion. They said that “religion was a traditional institution destined to shrink, or disappear due to pressures from modernizations”. As religious......

Words: 2467 - Pages: 10

Free Essay

Unemployment in Nigeria

...European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 11 (2008) © EuroJournals, Inc. 2008 http://www.eurojournalsn.com Reducing Unemployment Through the Informal Sector: A Case Study of Nigeria Ishola Rufus Akintoye Senior Lecturer, (OOU) Room 116, Department of Economics Faculty of the Social Sciences, University of Ibadan Ibadan, Nigeria – West Africa Abstract This paper seeks to establish that unemployment as one of the macroeconomic problems could be reduced through the informal sector participation provided it is well supported and manged. The informal sector in itself may not be able to achieve much as we have presently due to inaccessibility to credit, but with the on-going policy of the Federal Government through the Central Bank of Nigeria on micro-financing the macroeconomic objective of reduced unemployment, if not full employment will become a reality in Nigeria. The microfinance policy has empowered the many microfinance institutions to provide credit to the informal sector. We therefore advise that the Nigerian Government and all relevant stakeholders continue in their quest towards reducing unemployment while they give their undivided support, in making sure that the informal sector continues to enjoy access to credit to finance its activities and accomplish its goal of unemployment reduction. Introduction Unemployment is one of the developmental problems that face every developing economy in the 21st century.......

Words: 4676 - Pages: 19

Premium Essay

Impact of Human Resource Management Practices on Organizational Performance in Nigeria: an Empirical Study of Ecobank Nigeria Plc in the Last Five Years

... IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN NIGERIA: AN EMPIRICAL STUDY OF ECOBANK NIGERIA PLC IN THE LAST FIVE YEARS IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE IN NIGERIA: AN EMPIRICAL STUDY OF ECOBANK NIGERIA PLC IN THE LAST FIVE YEARS FADIORA RICHARD GBOLAHAN MBA HUMAN RESOURCES MANAGEMENT DISSERTATION DEPARTMENT OF MANAGEMENT SCIENCES NATIONAL OPEN UNIVERSITY OF NIGERIA LAGOS NIGERIA E-mail: ricardopsych@yahoo.com Tel: +2348065538913 Abstract This research study examines the impact of human resource management practices on organizational performance in Nigeria focusing on Ecobank Nigeria Plc in the last five years. A total of 50 samples were drawn from the bank population at its corporate head office in Lagos. Out of the 50 self-reported questionnaires administered in this research, 35 were returned upon which the data analyses were based. The primary data collected through questionnaire responses in this research were analyzed using Chi-square statistical techniques. Secondary data were consulted by reviewing Ecobank’s Annual Reports and Financial Statements. Selected HR Metrics such as Revenue Factor, Human Capital Value Added (HCVA), and Human Capital Return on Investment (HCROI) were used to analyze the secondary data respectively. The findings of this research have shown that Ecobank Nigeria Plc has a well-articulated human resource management policies and......

Words: 10098 - Pages: 41

Premium Essay

Accounting Skill as a Performance Factor for Small Businesses in Nigeria

...reduce world poverty to fifty percent by 2015. This according to Yunus (2008) can only be achieved if there is the adequate institutional, financial, and policy preparations for it. Emphasis on small business development will go a long way at achieving these goals. For example, Adelaja (2006) averred that interaction between Small and Medium Enterprises (SMEs) operators is a factor for the development of SME’s in Nigeria. Anwatu (2006) opined that 75% of the private sector in Nigeria is dominated by Small and Medium Enterprises (SMEs) reiterating that Organized Private Sector (OPS) is the engine of growth and creator of wealth and employment. The Nigeria Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA, 2006) argued that Small businesses are the vehicle for rapid industrialization and development of any nation. Evidences have shown that for any small scale enterprise to be successful, owner manager must possess appropriate skills and abilities to run the business (Orisanaiye, 2000, Okpara and Wynn, 2007). It is therefore, very important for entrepreneurs in Nigeria to develop all necessary skills required for setting and effective running of the enterprises in order to contribute meaningfully to development and self reliance of the nation’s economy toward the achievement of the MDGs. To succeed in today’s competitive market as an entrepreneur; one needs a broad array of entrepreneurial skills. Terry (2005a) argued that business owner needs to possess basic......

Words: 310 - Pages: 2

Premium Essay

Determinants Macroeconomics Variables and Stock Return

...return from stock market There were a lot of researches to study the relationship between macroeconomics variables and stock returns. It is important to study the interaction of macroeconomics factor and stock return. Based on the study, the public can identify which factors can influence the stock market and use the knowledge to predict movement of stock price. According to Wongbangpo & Sharma (2002), the research can reveal the functions of stock market in identify the change in economic condition and also can predict the future performance of stock market. Besides, the study will be useful for the stock market participators. Clare & Priestley (1998) said that the study of the risk factor relationship of stock market will be useful for corporate manager to undertake cost of capital calculation. Moreover, the fund managers can use the information from the result of study to make an effective investment decision and at the same times the investors can access the performance fund managers (Clare & Priestley, 1998). Lastly, the result of study can be used as guidelines for the government to implement policy. Butt et.al (2010) said that the finding of the study can be used to devise an effective economics and financial policy and improve the stock market condition in the country. Basically, the previous study evidenced that stock return are determined by macroeconomics variables. Chen et.al (1986) found that industrial production, unanticipated inflation, expected......

Words: 12578 - Pages: 51

Premium Essay

An Analysis of the Impact of Risk Exposure to the Performance of Banks in Nigeria

... AN ANALYSIS OF THE IMPACT OF RISK EXPOSURE TO THE PERFORMANCE OF BANKS IN NIGERIA CERTIFICATION I certify that this research work was carried out by MR ABOYARIN SALAMI TUNDE with Matriculation No.; 109025160 of the Department of Finance, Faculty of Business Administration, University of Lagos, Akoka, Lagos. __________________________ ______________ DR. LEKAN OBADEMI DATE _______________________ ____________ PROF. W. IYIEGBUNIWE DATE HOD DEPARTMENT OF FINANCE _______________________ ____________ EXTERNAL EXAMINER DATE DEDICATION This project work is dedicated to the Glory of ALMIGHTY ALLAH (SWT) to Him I say as always; ALHAMDULILAHI ROBIL ALAMIN!!! Special dedication also goes to the memory of my late father; Alhaji R.S.A Aboyarin. I pray his soul finds forgiveness and mercy before Allah (Amin. ACKNOWLEDGEMENT CHAPTER ONE 1.0: INTRODUCTION AND BACKGROUND TO THE STUDY Banks are germane to economic development through the financial services they provide. Their intermediation role can be said to be a catalyst for economic growth and development. The efficient and effective performance of the banking industry over time is an index of financial stability in any nation. The extent to which a bank extends credit to the public for productive activities accelerates the pace of a nation’s economic growth and its long-term......

Words: 14126 - Pages: 57

Premium Essay

Macroeconomic Variables

...Macroeconomic Variables MBA -502 Economics for Business The financial services industry is influenced by a vast number of variables. These variables affect the way people invest their money, how much they invest, what types of investments they choose, etc. The Principal Financial Group is not immune to these variables. Some of the macroeconomic variables that directly affect the products and services Principal offers are unemployment, inflation, government regulation, interest rates, and consumer income. Unemployment will affect the services and products that are provided by the Principal because those individuals who are not making a steady income will most likely not be customers. By the same token, customers who were employed that have become unemployed will either cease to be customers of Principal or may withdraw money from existing accounts. While these loans will be paid back with interest, they diminish the amount of money the Principal has to place that money in more lucrative investments. According to Stephen D. Simpson “… the experience of unemployment (either direct or indirect) can alter how workers plan for their futures…”. Inflation will cause the price of goods and services to rise. For the average consumer, this means that the more they spend on food, gas, housing, etc. the less money they have to spend on investments. While retirement savings are an important part of saving for the future, high inflation causes day to day living......

Words: 897 - Pages: 4

Premium Essay

What Are the Key Macroeconomic Variables for an Economy? How Have These Variables Changed in Your Economy over the Last 5 Years?

...What are the key macroeconomic variables for an economy? How have these variables changed in your economy over the last 5 years? The key macroeconomic variables for an economy are: GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Inflation rate - indicator that describes the changes in the general level of prices of goods and services purchased by the population for non-productive consumption. Unemployment rate is the percentage of the working population that is not currently employed. Interest rate is a reflection of the risk of borrowing. Changes in variables in Ukrainian ecomony over 2010-2014 y. Inflation rate As we can observe, the graph reveals that the inflation rate declined slightly from 2009 until 2012. However, it rised in 2013, showing a rate at 100,5 %. Inflation rate in Ukraine in September 2014 year amounted to 102.9%. GDP The Gross Domestic Product (GDP) in Ukraine was worth 177.43 billion US dollars in 2013. The GDP value of Ukraine represents 0.29 percent of the world economy. GDP in Ukraine averaged 85.27 USD Billion from 1987 until 2013, reaching an all time high of 179,99 USD Billion in 2009. Unemployment rate Unemployment Rate in Ukraine reached an all time high of 9,6 Percent in 2009 and there was a decrease in 2010 to......

Words: 304 - Pages: 2

Premium Essay

The Challenges of Globalization and the Role of Human Resources.

...THE CHALLENGES OF GLOBALIZATION AND THE ROLE OF HUMAN RESOURCES. Muhammad Aminu Bawa (1) Dr Juhary Ali (2) ABSTRACT The current financial crisis, which has engulfed East Asia since July 1997 and has subsequently spread to Russia and Brazil, is one of the most pressing challenges facing countries and businesses in today's global business environment. Globalization represents the structural making of the world characterized by the free flow of technology and human resources across national boundaries as well as the spread of Information Technology (IT) and mass media presenting an ever-changing and competitive business environment. Two major limitations are observed in the treatment of the twin issues of the responses to the East Asian economic crisis and the coverage of the literature on globalization. While the response to the crisis has focused on macroeconomic aspects, the issue of globalization has been addressed predominantly in and with respect to the developed economies of Western Europe, North America and Japan. This paper is an attempt to address these two limitations. Since the human factor is the key in the new era of globalization (Hassan, 1992; Sims & Sims, 1995), the primary objective of this paper is to present a conceptual framework for effective management of human resources as a response to the growing interaction of globalization and business performance. Three central arguments are made in this paper. (1) That a growing body of evidence converge...

Words: 5245 - Pages: 21

Premium Essay

Effects of Poverty and Government Policies in Nigeria on Students Performance

..................................iv Notes on contributors...................................................v Table of contents......................................................vii Prof. (Mrs.) N.Y.S Ijaiya - Re-Engineering Educational Management for Quality Education in Kwara State, Nigeria....................................1 2. Prof. Bade A. Agboola -Current Issues in Educational management in Nigeria: The Challenges of Open and Distance Education………………………………………….........15 3. Dr. M.A. Ogunu - The Present Status of Expectancy Theory..............................................................................................31 4. Dr. (Mrs.) A,T. Alabi - Teacher Professionalism and Productivity: Management Perspective...............................................................44 5. Dr. A.A. Olaoye-- Sociological Perspective to Managing School Curriculum and Resources............................................................54 6. Yahaya, Lasiele Alabi Ph.D - Relevance of Student- Assessment and Student- Advisement/ Counselling to Teaching........................77 7. Akinsolu, Abiodun Olatoun - HIV/AIDS Scourge Implications for Educational Planners in Nigeria.....................................................89 8. S.O. Afolabi - Lecturers' and Students' Perceptions on Influence of Supervision on Examination Malpractice in Kwara State-Owned Tertiary Institutions.......................................................................108 9. B...

Words: 1630 - Pages: 7

Premium Essay

The Impact of Food and Nutrition on Students’ Academic Performance in Chemistry in Nigeria

...The Impact of Food and Nutrition on Students’ Academic Performance in Chemistry in Nigeria THE IMPACT OF FOOD AND NUTRITION ON STUDENTS’ ACADEMIC PERFORMANCE IN CHEMISTRY IN NIGERIA OGUNBOYEDE Michael Olu Department of Educational Foundations and Counselling Adeyemi College of Education E-mail: mikeboyede@yahoo.com IDOWU Funmilayo Taiwo Department of Chemistry Adeyemi College of Education, Ondo State, Nigeria ABSTRACT The Millennium Development Goal No.1 in Nigeria says that “Eradicate extreme poverty and hunger away from Nigeria between, 1990 and 2015”. Hence, in the light of the above goal, this paper investigated the present influence of students’ feeding habits on their academic achievement in Chemistry in Nigeria. The study employed a survey research design and the sample for the study consisted of 3,000 students selected from ten States in Nigeria through multistage sampling technique. Data were collected through the use of a self-developed instrument titled “Students’ Feeding Habits Scale” (SFHS) and a proforma which was used to retrieve the academic performance of the selected students from records. Four hypotheses were generated for the study and tested at 0.05 level of significance. The results of the study revealed poor feeding as one of the major factors responsible for poor students’ academic performance at school. The paper therefore, confirms that poverty and hunger is still the order of the day in Nigeria. The paper concluded with strong recommendation for the...

Words: 3427 - Pages: 14

Premium Essay

Factors Affecting Academic Performance of Students in Nigeria

...A CASE STUDY OF SCHOOL - RELATED FACTORS AFFECTING NIGERIAN SECONDARY SCHOOL PUPILS’ ACADEMIC PERFORMANCE By Dr. Olaniyi Bojuwoye ABSTRACT A ten-item questionnaire containing various descriptions of school-related characteristic which have been found to adversely affect pupils academic performance was administered on 809 teachers and 1012 students of secondary schools from ten randomly selected states in Nigeria. The respondents ranked the characteristics in terms of their degree of effect on pupil academic performance. The result showed that lack of resource materials for teaching, instructional strategies, teacher shortages and teachers’ attitude to work were rated more highly than other characteristics. The result further showed that while the teachers considered lack of resource materials for teaching as having the greatest degree of effect on pupils academic performance, the students on the other hand considered poor instructional strategies as having the greatest degree of effect on pupil academic performance. INTRODUCTION AND BACKGROUND LITERATURE On attaining Independence status as a nation in 1960 what seemed a major concern to most Nigerian leaders then was how education would be accessible to all citizens of the newly created nation. Education was seen as the necessary instrument immediately and essentially for the consolidation of the independence, for securing the new nation against neocolonianism and for making workable the newly established self government in......

Words: 4789 - Pages: 20

Premium Essay

Macroeconomic Variables’ Impact on Bank’s Stock Price

...sector & Stock Exchange and Conceptual framework – Macroeconomic variable |3.1 An overview of Banking sector and Stock market of Bangladesh | We are interested in investigating the relationship between stock prices and macroeconomic variables because individual investors can earn abnormal profits by exploiting this relationship and the existence of this utilizable opportunity would then dangerously distort the market’s ability to proficiently allocate scarce resources. In other word, the stock market will lose its informational efficiency. Informational efficiency is defined as at any given time, stock prices fully reflect all available information of the market. Thus, no investor has an advantage in predicting a return on a stock price because no one has access to information not already available to everyone else. Identifying the relationship or informational efficiency thus can be used to correct the current economic stabilization policies. Therefore, the issue of whether stock prices and macroeconomic variables are related or not have received considerable attention. This paper provides empirical evidence of the relationship between stock prices with each of the macroeconomic variables: exchange rate, inflation rate, money supply variables and so on. The knowledge of the prevailing relationship between stock prices one the one hand, and micro variables like market price/ earnings, growth rate in......

Words: 3958 - Pages: 16

Premium Essay

Factors Influencing Students Academic Performance in Nigeria

...Factors Influencing Students Academic Performance in Nigeria Socio-Economic Factors Influencing Students Academic Performance in Nigeria Some Explanation from a Local Survey Nigeria like any other developing nations has witnessed series of political instability, with obvious effects on educational policies at federal, state and local government levels. This gradually laid the foundation of fallen standard in education at the primary and secondary school levels, which caused differential academic performance of students. In the quest of finding survival feet, the nation has evolved series of socio-economic and educational measures but these have not improved the social-economic status of families in the country. It is within this milieu that this study examines socio-economic factors influencing students' academic performance in Nigeria, with some explanations from Ido Local Government Area of Oyo State. The time frame of the study covers the period of 2004 to 2007. A total of one hundred and twenty (120) copies of questionnaire were administered to respondents. The study revealed that insufficient parental income, family type and lack of funding by governments are factors influencing students' academic performance. Based on these findings, certain recommendations are made towards improving student academic performance. Prominent of these include proper funding of education by government, sensitization of parents towards their children education and the support of NGOs to......

Words: 579 - Pages: 3