REVIEW ARTICLE | March 29, 2017
Comparative Analysis of Fuzzy Entropic Order Quantity (FEnOQ) Model
Padmabati Gahan, Monalisha Pattnaik, Sourav Dhal
Page no 112-124 |
10.21276/sjbms.2017.2.3.1
This paper focuses on comparative analysis of fuzzy entropic economic order quantity model in presence of
flexible ordering cost in finite planning horizon. The objective of this fuzzy model is to optimize the net profit so as to
determine the entropic order quantity, the number of replenishment cycle and flexible ordering cost. After testing
optimality and concavity of the net profit function it is compared with other different models through suitable numerical
examples which show that an appropriate optimal fuzzy entropic paradigm may benefit the manufacturer. Hence, this
paper shows a numerical example which elucidates the impact of entropy, flexible ordering cost and fuzzy. Finally,
sensitivity analyses and ANOVA testing of the present model are presented to validate the effectiveness and sensitivity
of the different parameters with respect to the fuzzy net profit of the proposed new fuzzy model. The proposed
mathematical model has demonstrated how this fuzzy approach to decision making can achieve a global optimum and
outperform the traditional models.
ORIGINAL RESEARCH ARTICLE | March 29, 2017
An Empirical Investigation on the Relationship between Entrepreneurial Orientation, Entrepreneurial Education and Entrepreneurial Intention in Nigeria: A study of some selected Students of Higher Learning
Kabir Shamsudeen, Bashiru Muhammad Liman, M. J. Haruna
Page no 125-130 |
10.21276/sjbms.2017.2.3.2
Youth empowerment is one of the major concerns of Nigerian government like any other developing countries
all over the world. It is the reasons why it needs to encourage its youths to be engaged in entrepreneurial activities with
the ultimate objective of becoming self-employed and self-reliant. Similarly in Nigeria, the government has introduced
several policies aimed at eradicating poverty by encouraging self-employment among youths. One of such policies is the
introduction of entrepreneurship education into the curriculum of higher education which is aimed at promoting and
inculcating entrepreneurship amongst the students of higher learning. Hence, this study aims at investigating the
relationship between entrepreneurial orientation (EO), entrepreneurial education (EE) and entrepreneurial intention (EI)
among undergraduate students at Nigerian Universities. A total of 74 valid questionnaires from the students were used
and the study find out that, both EO and EE has direct positive relationship with EI. The study also has both theoretical
and practical contributions. Finally, the study suggests direction for future research.
REVIEW ARTICLE | March 29, 2017
Applying select Strategic Management concepts on a Saudi Arabian start-up restaurant: A case
Dr. Deepanjana Varshney, Dr. Fatheia Hassn Abdulfattah
Page no 131-136 |
10.21276/sjbms.2017.2.3.3
Strategic Management Concepts and models are widely being used by organizations to achieve a sustainable
competitive edge in the industry. Applying the principles and theories on large corporations is common. In our research,
we have selected a start-up restaurant of Saudi Arabia initiated by a group of enthusiastic young Saudis. Though the
business is still at an early stage of development, we had analyzed the enterprise by applying different strategic
management perspectives. The research discussed the business venture using SWOT analysis, value chain analysis, and
external & internal scanning analysis. Future research directions are also given.
ORIGINAL RESEARCH ARTICLE | March 29, 2017
Building a Frame Research of Corporate Culture Impact to Working Motivation and Employee’s Loyalty in Lilama
Bui Thi Minh Thu, Le Nguyen Doan Khoi, Tran thi Ngan Ha
Page no 137-142 |
10.21276/sjbms.2017.2.3.4
The article has established research framework on the impact of corporate culture on work motivation and
loyalty, has focused detect weaknesses in corporate culture research from reality to impact , bottlenecks how to assess the
status of corporate culture. Handled bottlenecks on the impact of corporate culture to employees by going into the
analysis of corporate culture affects work motivation and loyalty to employees by Shien's model and Denison. This is an
important prerequisite for building Corporate culture suitable for attracting the international integration.
REVIEW ARTICLE | March 29, 2017
Consumers Attitudes toward Marketing Deception in Advertisement: An Empirical Study in Irbid City- Jordan
Akif Yousef Al-Zyadat
Page no 143-148 |
10.21276/sjbms.2017.2.3.5
This study has been set to explore marketing deception, (i.e. unethical marketing behavior), as it relates to
advertisement element, from the consumer perspective. The study examines how far consumers realize and accept
marketing deception. The study is based on a judgment sample of (899) respondents drawn from main shopping centers
in the city of Irbid. The sample can also view as "Mall Intercept" sample. Respondents were taken from the age group of
(18) year and above as these categories are considered mature enough.
ORIGINAL RESEARCH ARTICLE | March 29, 2017
Customer Decision Analysis in Taking Multipurpose Loan: Promotions, Locations and Credit Procedures (A Case of the Bank "PQR Jakarta")
Siti Hairiyah, Hapzi Ali
Page no 149-156 |
10.21276/sjbms.2017.2.3.6
Over the last five years (2010-2015) portfolio Multipurpose Credit Bank "PQR" continued to grow every year,
but the growth over three years (2013-2015) tend to decrease. Multipurpose Loan of 2010-2012 on average grew by Rp.
584,557 million per year, but the growth of credit Multipurpose tended to decrease since 2013 with an average Rp.
350,722 million. The study aims to analyze the influence of promotions, location, and credit procedure in Multipurpose
Loan to take credit in Bank"PQR". The number of samples is 100 respondents and the sampling technique is accidental
sampling, with criteria already taking multipurpose loans. Data was analyzed with quantitative method that is multiple
regression. The results showed that promotion, location, and credit procedures have significant and positif effect on
customer’s decision to take the Multipurpose Loan. The strongest influence to the customers in the decision to take
Multipurpose Loan is come from the location.
ORIGINAL RESEARCH ARTICLE | March 29, 2017
Effect of Job Satisfaction and Leadership Style towards Employee Productivity at PT Asuransi Umum Bumiputera Muda 1967
Margarita Thessa Maida, Setyo Riyanto, Hapzi Ali
Page no 157-168 |
10.21276/sjbms.2017.2.3.7
The objective of this study was to investigate the effect of working satisfaction and leadership style to
productivity of PT Asuransi Umum Bumiputera Muda’s 1976 employee. The rationale for utilizing this variable was
based on the previous study and literature review result. This study used simple random sampling method. The number of
sampling formula in this study used Slovin formula, with 88 respondents. The data was analyzed with SPSS 20.0 for
window software. Multiple linear regression was performed to investigate the effect of working satisfaction and
leadership style to employee’s productivity. The results showed that there was a significant influence between working
satisfaction and employee’s productivity, leadership style and employee’s productivity, and simultaneously there was a
significant effect for both of variables to productivity of PT Asuransi Umum Bumiputera Muda’s 1976 employee.
REVIEW ARTICLE | March 29, 2017
The Influence of Selected Demographic and Business Characteristics on the Performance of Women Owned Microenterprises in Tanzania
Paul J. Salia
Page no 169-178 |
10.21276/sjbms.2017.2.3.8
Performance of women owned microenterprises is a function of many factors including, but not limited, size
of capital, access to credit, demographic factors and also a number of business characteristics. However, the aim of this
paper is to show how the performance of those microenterprises related to selected business and individual owners‟
characteristics in Tanzania. The paper relied on data collected from 400 women owners of microenterprises selected
randomly from three major cities including 200 from Dar es Salaam, 100 from Mwanza and other 100 from Arusha.
Business performance was measures using three indicators namely sales revenue, net profit and business net worth.
Findings revealed that business net worth differed significantly across those three types of businesses. The findings
revealed that sales of businesses operating in the city centres (in shops) and of those businesses operating around the
industrial areas were significantly higher than those of businesses operating at home, in markets, on the road sides and of
the mobile businesses. Also, it was revealed that microenterprises‟ owners with higher level of formal training performed
better than those with little or without formal training. Furthermore, the findings showed that net profit and net worth of
manufacturing enterprises were higher than for retain and service businesses. The study made the following
recommendations. First, Local Government Authorities should designate spaces in towns where women owners of
microenterprises can operate their business. Second, Regional Trade Offices should design short training programs that
can equip women owners of microenterprises with simple but comprehensive understanding of the dynamics of their
businesses.
REVIEW ARTICLE | March 30, 2017
Ethical Sensitivity and Success of Female Entrepreneurs in Akwa Ibom State of Nigeria
Paul O. Udofot, Nsikan E. John
Page no 179-184 |
10.21276/sjbms.2017.2.3.9
This research investigates the sensitivity of female business owners/managers to ethical challenges and the
effect on their success as female entrepreneurs in Akwa Ibom State, Nigeria. The survey design was used with study
population consisting of 1,678 female owners of registered small and medium scale enterprises (SMEs) operating in
Akwa Ibom State, Nigeria. From the population, random sampling technique was utilized to select a sample of 400
female entrepreneurs for the study. Data were obtained through the Multidimensional Ethical Questionnaire and were
analyzed using descriptive and inferential statistics. Result showed that except in conflict of interest, relationship
between moral equity, contractual obligation, and entrepreneurial success was positive and significant. Participants were
found to be aware of what constituted ethical issues, and tended to act accordingly to minimize ethical challenges in the
process of doing business. We recommended sensitization on the consequences of unethical business decisions to
business and the larger society.
REVIEW ARTICLE | March 30, 2017
Measuring the Financial Performance of Jordan Steel Since 2007
Dr. Basman Omar Al-Dalayeen, Borhan Omar Ahmad Al-Dalaien
Page no 185-189 |
10.21276/sjbms.2017.2.3.10
Financial performance of a company defines competitiveness, potentials of the business, and economic
interests of the company‟s management and reliability of present or future contracts. It is important for management,
shareholders, the public (customers of the bank), the regulator (the government), the financial sector, and the economy as
a whole. It provides signal to depositors and investors whether to withdraw or invest funds. The present research has
been undertaken to measure the financial performance of Jordan Steel since 2007. The results highlighted that the
financial performance of Jordan Steel was satisfactory during initial years of the study but deteriorated in later years and
hence requisite steps should be taken to improve its performance.
ORIGINAL RESEARCH ARTICLE | March 30, 2017
The Efficiency Level of Primary Schools Financial Administrative Assistants in Managing School Finance at District of South Kinta Malaysia
Syed Ismail Syed Mohamad, Juliana Mohd Jamil
Page no 190-197 |
10.21276/sjbms.2017.2.3.11
This study focuses on the efficiency of the school’s Financial Administrative Assistant in managing the
school’s financial based on their level of knowledge and skills (including financial management, receipt management,
management of cash book and petty cash, purchase management, and the preparation of the annual financial statements),
as well as the level of accountability and attitude motivation in school financial management. It is a quantitative study
sample which was comprised of 65 primary school Administrative Assistant in the South Kinta district. The data was
collected by using questionnaire survey with 64 items divided into 4 parts, Part A (4 items - information and background
of the respondents), Part B (40 items - the knowledge and skills), Part C (12 items - a level of accountability) and Part D
(8 items - attitudes and motivation). Descriptive analysis (percentage and mean) was used to obtain information for each
variable. The results showed that the level of Administrative Assistant efficiency is high. Level of knowledge and skills
that show a mean of 3.55, a level of accountability that show a mean of the 3.59 and attitude and self-motivation showed
an overall mean value of 3.49. Therefore, based on these findings the school's financial management practitioners such as
Head Master, District Education Office Assistant, Education Department (NRD) and the Department of School Audit to
take proactive measures that will be beneficial to all parties involved in the efforts to improve the schools’ financial
management.
REVIEW ARTICLE | March 30, 2017
Knowledge regarding the financial topics of expense and credit, savings and investment and money management: an empirical study of high-school students in Veracruz MEXICO
Alejandra, Contreras-Rodríguez, Arturo, García-Santillán, Carlos, Rojas-Kramer, Jésica J., RamosHernández
Page no 198-214 |
10.21276/sjbms.2017.2.3.12
The aim of this paper is focused in measure the level of knowledge they have high school students about
financial topics such as: spending and credit, savings and investment and money management. The participants were 368
students of different high schools in three municipalities of the State of Veracruz, México who were selected from of the
stratified sample. The questionnaire is a scale that includes 31 items of multiple choices in the form of cases where there
is only one correct answer of the total four options. The instrument showed acceptable Chronbach alpha reliability and
internal consistency (> 0.7). The results lead us to think that there is a lack of knowledge about the usefulness of
pensions, the issues related to insurance, the impact of inflation on salaries of people workers, even an interesting fact is
that although it was known that there is a knowledge about the basic channels of saving, they denote lack of knowledge
towards the investment instruments, especially those that by their nature are associated with the capital markets.
ORIGINAL RESEARCH ARTICLE | March 30, 2017
Cash Management Practices on Financial Performance of Small and Medium Enterprises in Nyeri Town, Kenya
Danson Kinyanjui, Dr. David Kiragu, Dr. Riro Kamau
Page no 215-221 |
10.21276/sjbms.2017.2.3.13
Small and Medium Enterprises (SMEs) lack adequate skills to manage and monitor their cash management
practices leading to limited financial growth hence inability to compete while increasing their assets, opening more
branches and growing their sales. This study sought to analyze effect of cash management practices (cash holding
practices, use of technology and cash pooling practices) as well as analyze the combined effect of the cash management
practices on financial performance of SMEs in Nyeri town, Kenya. The study employed a descriptive research design
with target population being the registered SMEs in Nyeri town. Data was collected using a self-administered semistructured questionnaire from a sample population of 62 SMEs operating in Nyeri town and registered by the business
registrar’s office in Nyeri County. Data was analyzed using statistical package for social sciences (SPSS) to generate
descriptive and inferential statistics. Results obtained indicated that cash holding practices and use of technology in cash
management had a relevant effect on financial performance of SMEs in Nyeri. The study recommended that all
stakeholders in business operations ranging from suppliers, customers, and financiers should embrace use of technology
to facilitate electronic data interchange. Future research could focus on comparative study of large organizations to
establish whether the same factors affecting SMEs financial performance also affect large businesses.
REVIEW ARTICLE | March 30, 2017
The Professionalization of Evaluation in Nigeria: The Barriers and Challenges in Conducting Evaluation in Nigeria and the Role of NAE
Victor A. Malaolu, Jonathan E. Ogbuabor
Page no 236-243 |
10.21276/sjbms.2017.2.3.15
This paper examined the barriers/challenges facing the evaluation profession in Nigeria and the role of the
Nigerian Association of Evaluators (NAE) towards improving the profession. The paper also draws lessons from other
African countries on how to improve evaluation practice in Nigeria. The findings indicate that paucity of evaluation skill,
partial implementation of national monitoring and evaluation systems, lack of monitoring and evaluation ownership, nonutilization of evaluation results and funding are the main barriers/challenges confronting evaluation conduct in Nigeria.
The paper therefore recommends that the NAE should improve the technical capacity of evaluation practitioners in
Nigeria; organize workshop for cross learning and experience sharing among practitioners; supporting monitoring and
evaluation ownership and canvass for utilization of evaluation results. The paper finds from cross country analysis that
institutionalizing the evaluation of public polices is a veritable step towards a National Evaluation Policy in Nigeria,
which will promote good monitoring and evaluation practice in the country. Overall, we recommend that policy makers
in Nigeria should aim to use evaluation in improving the effectiveness of public policies.
ORIGINAL RESEARCH ARTICLE | March 30, 2017
Organizational Culture and Employee Retention of Selected Commercial Banks in Anambra State
Chidinma Vivian Madueke, Ikechukwu Chimezie Emerole
Page no 244-252 |
10.21276/sjbms.2017.2.3.16
Every organization develops and maintains a unique culture, which influence the way employees think, feel
and behave in the workplace. The competitive environment of business has changed not only in the business world but
also in the mindset of the individuals that work in those organizations. Employees are ready to switch over whenever
they are dissatisfied with any reason in the job. This paper therefore examined the nature of relationship that exists
between organizational culture and employee retention with particular reference to three selected commercial banks in
Awka, Anambra State. Descriptive survey research design was adopted and the research hypotheses were tested using the
Pearson Moment Correlation Coefficient. . The study worked with a population of 35 employees. The finding revealed
that there is a significant positive relationship between innovative culture and the employee commitment in commercial
banks. In conclusion, Idea generation, capability and risk taking are essential to high retention organization. It was
recommended that banks needs to adapt their innovative strategies in order to meet the pressure set by competitors.
REVIEW ARTICLE | March 31, 2017
Documenting empirical research in Economics: why is it important and how is it done?
Jonathan Emenike Ogbuabor
Page no 253-255 |
10.21276/sjbms.2017.2.3.17
One of the main challenges facing economic researchers across the globe, especially empirical researchers in
developing economies, is how to document their work. Indeed, numerous scholarly contributions are rejected by credible
and refereed journals due to poor documentation. This paper examines the importance of good documentation of
empirical research in Economics as well as how such documentation is done. Specifically, this paper shows that
replication may be impossible if empirical research is not properly documented, and that well compiled data file, do-file,
and technical annex are key ingredients of properly documented empirical research in Economics.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Urban Infrastructure Provision in Nigeria: A Critique of the Funding Strategy
Francis P. Udoudo, John O. Udoidem
Page no 256-263 |
10.21276/sjbms.2017.2.3.18
Urban infrastructure includes physical structures and facilities that are developed or services provided by the
public or private institutions to enhance the efficient functioning of an urban centre. In Nigeria, urban infrastructure are
largely financed, owned and managed by government at the various tiers through established public agencies. This
research is aimed at critically examining the funding strategy of urban infrastructure provision in Nigeria. The objectives
included to examine the current state of urban infrastructure in Nigeria, to review the funding policy of urban
infrastructure provision in Nigeria and to assess the impact of the funding strategy on urban infrastructure provision. Data
for this study were collected from mostly secondary source. The research concluded that the Nigerian government has
been guilty of neglecting or under-funding infrastructure development due to either poor budgeting, estimation of
acquisition, maintenance cost or sheer mismanagement of funds allocated for such projects. The paper recommended that
funding of urban infrastructure provision and maintenance should be embodied in the national budget while monitoring
of the executed projects should be performed by the statutory government agencies. This will ensure that the value for
money spent is realized.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Measuring the Advocacy Levels for UBT Student by Using Net Promoter Score
Khalid M. Al-Zamil
Page no 264-269 |
10.21276/sjbms.2017.2.3.19
Net Promoter Score is a measure used successfully in the commercial fields. In this research we want to apply
it on an academic field. Nowadays, there are three universities that are offering MBA program in Jeddah city or we can
say in the Western region of Saudi Arabia, and UBT is one of them. In this research we want to measure the advocacy
levels for UBT students and explore key interactions and their importance to students. This will show MBA students to
what extend they promote this prog
REVIEW ARTICLE | March 31, 2017
Exploring Model of Entrepreneurship Success: A Summary Review of the Literature
Rikinorhakis Ridzwan, Nik Maheran Nik Muhammad, Anis Amira Ab Rahman
Page no 270-277 |
10.21276/sjbms.2017.2.3.20
Nowadays, entrepreneurship literature has become an important component for the development of
productivity and economic growth. The entrepreneurial activity is one of the contributors to the country’s economic
development. From that, this paper examines five entrepreneurship models with underlying empirical studies. These are;
(1) Conceptual Framework of Business Success, (2) Model of the Entrepreneurship Process, (3) Conceptual Framework
of Business Success in SMEs, (4) A Model of Strategic Entrepreneurship, and (5) Input-Process-Output Model of
Strategic Management. These models are useful and a thorough understanding of how an entrepreneur’s success is
important, because this will lead to the development of new tools, such as (1) tools for business to improve their
innovation and growth processes and, (2) tools for governments to develop new policies to support and direct economic
growth.
REVIEW ARTICLE | March 31, 2017
Accountability and Integrity in Managing School Finance: A Study in Secondary Schools under Responsibility Center Status in One of Malaysian Districts
Syed Ismail Syed Mohamad, Noraini Ibrahim
Page no 278-285 |
10.21276/sjbms.2017.2.3.21
This study investigated the relationship between the levels of accountability and integrity of school financial
management and the factors that affect levels of accountability and integrity. Selected respondents were among the top
and middle management leaders of national high schools. The schools selected were schools under Responsibility Centre
status in one of a Malaysian districts which comprised of 97 respondents. The instrument used forthis study was
questionnaire designed by the researchers based on observations and literature reviews. The reliability of the
questionnaire was α = 0.96. The data were collected and analysed using mean score, Pearson Correlation and Sample ttest which were the main quantitative methods. The results showed very high levels of accountability and integrity
among the schools’ financial managers in the district. The study revealed a significant relationship between the levels of
accountability and integrity in accordance to few factors namely; knowledge in financial management, financial
management of the individuality of the school and the school’s internal control. Finally, the results indicated that there
was no significant difference in the levelsof accountability and integrity in managing schools’ financial sources based on
genders. The findings of this study can be used by school principals and the Ministry of Education to improve the
efficiency of schoolfinancial management, to increase the number of schools that received the Certificate of Excellence
Audit and also can help the school managers to lay out the filling course or in-service training (INSET) in schools.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Analysis Work Discipline and Work Spirit to Achievement Employees Pt. Japfa Comfeed Indonesia Tbk. Wood Planting
Agussalim M
Page no 286-296 |
10.21276/sjbms.2017.2.3.22
The purpose of this study was to determine the effect of: 1) Discipline working through the spirit of the work
on employee performance PT. Japfa Comfeed Tbk. Planting timber indirectly. 2) The spirit of working through labor
discipline on employee performance PT. Japfa Comfeed Tbk. Planting timber indirectly. 3) Discipline and morale work
on employee performance PT. Japfa Comfeed Tbk. Planting timber, either partially or simultaneously. A population of
42 people and the sample is saturated sampling as many as 42 people. The analysis used is path analysis, multiple linear
regressions, coefficient of determination and hypothesis testing partial and simultaneous with the alpha (0.05). The
results of path analysis showed a positive and significant impact work discipline variables via the morale on employee
performance PT. Japfa Comfeed Tbk. Planting timber either directly or indirectly. Morale through labor discipline and
significant positive effect on employee performance PT. Japfa Comfeed Tbk. Planting timber either directly or indirectly.
The results of multiple linear regression analysis showed employee performance PT. Japfa Comfeed Tbk. Planting timber
affected by the work discipline and morale 0251 points at 0261 points. The results of the analysis of determination of
0264, that variable work discipline and morale can explain the work performance of employees of PT. Japfa Comfeed
Tbk. Planting timber is 26.4% while the remaining 73.6% is influenced by other variables. Work discipline and morale
has a positive and significant impact on employee performance PT. Japfa Comfeed Tbk. Planting timber either partially
or simultaneously.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Functionality of Career Advancement and Organizational Effectiveness: Nigerian Deposit Money Banks Perspective
Adewoye, Jonathan Oyerinde, Dr. Abioro, Matthew Adekunle, Dr. Adele, Hasimiyu Ademola
Page no 297-304 |
10.21276/sjbms.2017.2.3.23
The study provides a holistic view of how employees‟ career advancement can affect organizational
effectiveness among selected deposit money banks in Nigeria. The specific objective is to determine the relationship
between career advancement and organizational effectiveness in the Nigerian deposit money banks. Primary data was
collected from a total of seven (7) banks from existing twenty one (21) licensed banks by Central bank of Nigeria (CBN)
through structured questionnaire to elicit information on career development. Data collected were analyzed using both
descriptive statistics to determine the relationship between respondents socio-economic characteristics and organizational
effectiveness while inferential statistics of Pearson Product Moment Correlation coefficients (PPMC) was employed to
analyze the relationship between the variables of career advancement and organizational effectiveness respectively.
Findings revealed that employee career advancement in the organization exert a great influence on the operations of
deposit money banks in Nigeria, and as such banks management should invest in employees‟ development to stem
employee turnover and improve productivity.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
The Effect of Bioenergy and Pollution on Economy of Pakistan
Wajeeh Ullah, Zia Ur Rahman
Page no 305-311 |
10.21276/sjbms.2017.2.3.24
This paper investigates the Effect of Bioenergy and pollution on economy of Pakistan. Unit root and
integration tests have been used to check unit root properties and long-run relationship for the times of 2001Q1 to
2015Q2. The relevant result shows there is a long run relationship exists between the pollution and bioenergy. In short
run, there is no effect or low effect of bioenergy on economic growth of Pakistan which have to possess no contributions
for economic development. The study further investigates to show that biomass as the basic source of renewable energy,
cooperate Pakistan to gain durable improvement aim in the long run as well as in short run. On other hand, government
needs to take a serious step to control the pollution level in Pakistan.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Budget Deficit and Economic Performance in Nigeria
Momodu Ayodele A, Monogbe Tunde G
Page no 312-321 |
10.21276/sjbms.2017.2.3.25
Since the past year budget deficit is corrected in the current year, this study seek to examine the lag effect of
previous year‟s budget deficit on performance of the Nigeria economy in the contemporary year using VAR estimation
between the periods 1981 to 2015. From the foregoing statistical output, findings established that Budget deficit
significantly stimulate economic performance. The output of the granger causality test shows that budget deficit
statistically granger cause economic performance and viz versa while the result of the multiple regression of the ordinary
least square report a significant but negative relationship to economic performance. The negative response of budget
deficit to economic performance could be attributed to moral hazard, mismanagement of fund and financial indiscipline
which prevent the country from enjoying the sustainable level of expected growth overtime. The output of the VAR
estimate established that the lag value of federal government budget deficit has contributed to performance of the
economy in the current year although the contributive quadrant is not been felt to a reasonable extent. This empirical
findings support the Keynesian postulation of significant relationship between budget deficit and economic performance.
Prior to our findings, study recommends that Policy makers should ensure effective utilisation of borrowed fund and
maintain a sporadic evaluation and supervision of such project in which borrowed fund are channelled into in order to
achieve a profitable returns which will help in servicing of such debt and also stimulate economic performance.
ORIGINAL RESEARCH ARTICLE | March 31, 2017
Deficit Financing in the Process of Economic Development in Nigeria
Monogbe Tunde G, Okah O. John
Page no 322-329 |
10.21276/sjbms.2017.2.3.26
These empirical research works is anchored on the three fundamental and theoretical arguments that emanated
between the Keynesian school, the neoclassical school of thought and Ricardo hypothesis and their view on deficit
financing with respect to its contribution to economic development. Despite the huge quantum of debt Nigerian
government accommodate yearly, the expected level of development is not been attained as larger percentage of her
citizens still lives in abject poverty, low standard of living and high level of unemployment and so on. At this junction,
one begins to wonder why the theoretical suggestion dose not seems to be working in the Nigerian context. It is based on
these hullabaloos that this study seeks to investigate the effect of deficit financing on development of the Nigerian
economy between the periods 1981 to 2015 using error correction model and granger causality test. Study report that
Federal government external debt exhibits a significant P-value of 0.0173 with a positive coefficient of 0.000031
suggesting that 1% increase in government external debt is capable of stimulating economic development in Nigeria to
the tune of 0.00003. The report of the causality test also validate the report in the error correction model and thus suggest
that external debt significantly contribute to the development of the Nigeria economy while domestic debt and deficit
budget does not seems to granger cause economic development in Nigeria. On this premises, study conclude that deficit
financing is a vital stimuli in promoting economic development in Nigeria if adequately channel for the original purpose
for which it was meant for. Furthermore, study thus validates the Keynesian postulation of the existence of positive
relationship between deficit financing and economic development. On this note, study recommend that managers of the
Nigerian economy should coordinate the appropriation of borrowed fund and ensure that it is properly channelled
towards improving the capital and production dominance of the nation as this will further help in achieving a sustainable
level of economic development in Nigeria.