TABLE OF
CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF THE PROBLEM
1.3 AIMS AND OBJECTIVES OF THE STUDY
1.4 SIGNIFICANT OF THE STUDY
1.5 RESEARCH QUESTION
1.6
HYPOTHESIS
1.7
SCOPE OF THE
STUDY
1.8
LIMITATION
OF THE STUDY
1.9 DEFINITION OF TERMS
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1 INTRODUCTION
2.2 CONCEPTUALIZING DEVELOPMENT POLICIES
2.3 DEVELOPMENT POLICIES AND ECONOMIC GROWTH
2.4 TYPES
OF DEVELOPMENT POLICIES IN NIGERIA
2.5 FISCAL AND MONETARY POLICY IN NIGERIA
CHAPTER
THREE
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
3.2 THE POPULATION OF THE STUDY
3.3 SAMPLING PROCEDURES
3.4 SOURCES OF DATA COLLECTION
3.5 METHOD OF DATA COLLECTION
3.6 DATA ANALYSIS TECHNIQUES
CHAPTER
FOUR
4.1 PRESENTATION, ANALYSIS AND
INTERPRETATION
OF DATA
4.2 MEASUREMENT OF DATA
CHAPTER FIVE
5.0 SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
AND CONCLUSION
5.2 RECOMMENDATIONS
BIBLIOGRAPHY
CHAPTER ONE
1. 0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Development policies and programmers in Nigerian
has not been stable over the years as a result, the country's economy has
witnesses so many shocks and disturbances both internally and externally over
the decades. Internally, the unstable investment and consumption patterns as
well as the improper implementation of public policies, changes in future
expectations and the accelerator are some of the factors responsible for it.
Similarly, the external factors identified are wars, revolutions, population
growth rates and migration, technological transfer and changes as well as the
openness of the country's Nigerian economy are some of the factors responsible.
The
cyclical fluctuations in the country's economic activities has led to the
periodical increase in the country's unemployment and inflation rates as well
as the external sector disequilibria (Gbosi, 2001). In other words, development
policies is a major economic stabilization weapon that involves measure taken
to regulate and control the volume, cost and availability as well as direction
of money in an economy to achieve some specified macroeconomic policy objective
and to counteract undesirable trends in the Nigerian economy (Gbosi, 1998).
Therefore, they cannot be left to the market forces of demand and supply as
well as other instruments of stabilization such as monetary and exchange rate
policies among others, are used to counteract are problems identified (Ndiyo
and Udah 2003). This may include either an increase or a decrease in taxes as
well as government expenditures which constitute the bedrock of development
policies but in reality, government policy requires a mixture of both fiscal
and monetary policy instruments to stabilize an economy because none of these
single instruments can cure all the problems in an economy (Ndiyo and Udah,
2003).
The
Nigeria economy started experiencing recession from early 1980s that led to
depression in the mid-1980s. This depression continued until early 1990s
without recovering from it. Government continually initiated policy measures
that would tackle and overcome the dwindling economy. Drawing the experience of
the great depression, government policy measures which was used to curb the depression
was in the form of increase government spending (Nagayasu, 2003).
Okunroumu,
(1993) the management of the Nigerian economy in order to achieve macroeconomic
stability has been unproductive and negative because with evidence in the
adverse inflationary trend, government fiscal policies, undulating foreign
exchange rates. The fall and rise of gross domestic product, unfavorable
balance of payments as well as increasingly unemployment rates are all symptoms
of growing macroeconomic instability. As such, the Nicias economic is unstable
to function well in an environment where there is low capacity utilization
attributed to shortage in foreign exchange as well as the volatile and
unpredictable government policies in Nigeria (Isaksson, 2001).
The
aim of this work therefore is to assess the impact of development policies on
the macroeconomic stabilization of the Nigeria economy. To facilitate over task
we divided this study into four sections. The next chapter represents the
conceptual framework, while chapter 3 is the methodology, chapter four data
analysis while chapter five concludes the study with appropriate
recommendations.
1.2 STATEMENT
OF THE PROBLEM
This study assesses the development
policies and
programmers on the
level of economic activities in Nigeria. The choice of this topic is induced by
the poverty situation in the country. The country has great potential for economic
advancement based on its vast material and human resources, yet these are not
utilized. As a result the country is caught up in poverty trap of low savings
which is caused by low income and the low income is as a result of low
productivity which is the result of deficiency of capital. The deficiency of
capital is caused by low income resulting to low saving.
How can this chronic
poverty cycle trap be broken so that the country will not remain in low
equilibrium growth trap? This is the problem this study revolves around. This
study advances that this poverty trapped can be broken using both fiscal
policies of the government. Government policies will be improved so that it
will be used to stimulate growth rate. All these will help remove the country from
the chronic poverty condition.
1.3 AIMS
AND OBJECTIVES OF THE STUDY
This study seeks to achieve the following
objectives;
a. the
uses of development policies in developing Nigeria economy
b. To evaluate the impact of government requirement
expenditure on economic activities.
c. To assess the impact of capital expenditure on
the level of economic activities.
d. to assess the impact of taxes on the level of
economic activities.
e. to
assess the impact of regulation in managing economic development
1.4 SIGNIFICANT OF THE STUDY
The important of this study cannot be over
emphasizes. It will serve as a useful material to the Fiscal authority, bank
management and staff, worker, depositors, students and indeed the entire
economy.
Never the less, it will add to the volume of
studies on the regards. The report shall be useful in ensuring both Fiscal
stability and a sound, safe and profitable banking environment which will
facilitate the pace for the economic growth and development in Nigeria.
1.5 RESEARCH
QUESTION
The following needs is
to be address for prepare analysis of data
a. Do the government development policies improve
Nigeria’s economic growth?
b. What incentive have the government offered to
improve development policies in Nigeria economy.
c.
What are the need
of development policies in Nigeria economic growth
d. What makes fiscal polity a necessity in Economic
development
e. How came Nigeria economic be improve when apply
development policies
1.9
HYPOTHESIS
The following hypothesis has been formulated as a
guide to the conduct of the study. They should be tested based on the result
obtained from the regression coordinated. The hypotheses are;
a.
Ho: Government in
Development policies does not significantly improve economy growth.
b.
H1: Government in
Development policies significantly improve economy growth
I.e. Ho= Null Hypothesis
Hi= Alternative Hypothesis
1.10 SCOPE OF THE STUDY
Over the last decade, the development policies and
programmers has generated large volume of both theoretical and empirical
literature.
However, most of this study paid more attention to
developed economies and the inclusion of developing countries in case of cross
country studies were mainly to generate enough degrees of freedom in the course
of statistical analysis (Aregbeyen, 2007). There is a popular assertion in the
empirical literature that public spending is negatively correlated with
economic growth due to inefficiency of the public sector especially in the
developing countries where large proportion of public spending is attributed to
non-development expenditure like defense and interest payments on debits
(Husnain, 2011) and Nigerian is not an exception.
However, current trends in fiscal administration
has introduced various ways in view to reducing such expenditure that contributes
little to the development goals of national economy. This thought is the
adoption of MTEF (1998) as part of broad package of budget reforms to encourage
cooperation across various government arms in planning and strategy for
reducing wasteful expenditure.
Development policies have not been effective in
the area of promoting sustainable economic growth in Nigeria. Although, the
finding seems invalidating the Keynesian postulation of the need for an active
policy to stimulate economic activities, however, factors such as policy
inconsistencies, high level of corruption, wasteful spending, poor policy
implementation and lack of feedback mechanism for implemented policies evident
in Nigeria which are indeed capable of hampering the effectiveness of development
policies have made it impossible to come up with such a conclusion. To put the
Nigerian economy, therefore, along the path of sustainable growth and
development, the government must put a stop to the incessant unproductive
foreign borrowing, wasteful spending and uncontrolled money supply and embark
upon specific policies aimed at achieving increased and sustainable
productivity in all sectors of the economy.
1.11 LIMITATION OF THE STUDY
It is quite believed that the study of nature
needs sufficient time, finance and materials. The inadequacy of those factors
poses enough limitations to this study. The limitations in general include;
a.
Financial and
Fiscal constraint
b.
Material
constraint
c.
Time constraint
d.
Physical and
Geographical constraint
1.9 DEFINITION
OF TERMS
1.9.1
BANKING INDUSTRY
These refers to the total number of banks and
other financial institution who performs banking function such as acceptance of
deposits,. Issuing of credits/loan and keeping of valuables. Such banks
include; Merchant Banks and Development Banks etc. The banking industry also
consists of the Fiscal authorities such as Central Bank of Nigeria and other
federal bodies whose duty includes the regulation of the economy.
1.9.2
DEVELOPMENT POLICIES
Is the use of government
revenue collection (taxation) and expenditure spending to influence the economy?
The two main instruments of development policies are changes in the level and
composition of taxation and government spending in various sectors. These
changes affect the following macroeconomic variables in an economy. Aggregate
demand and the level of economic activity, the distribution of income. The
pattern of resources allocation within the government sector and relative to
private sector.
1.9.3 MONETARY POLICY
This is the process by which the monetary authority
of a country controls the supply of money, often target a rate of interest for
the purpose of promoting economic growth and stability. The official goals
usually include relatively stable prices and low unemployment. Monetary
economics provides insight into how to craft optimal monetary policy.
1.9.4 ECONOMIC GROWTH
Is the increase of the market value of the goods and services
produced by an economy over time. It is conventionally measured as the percent
rate of increase in real gross domestic product, or real GDP. One of more
importance is the growth of the ratio of GDP to population (DGP per capital),
which is also called per capita income.
1.9.5 INSURANCE BANK
This implies those banks whose risks are insured with Nigeria Deposit
Insurance Commission (NDIC)
1.9.6 BANK
DISTRESS
This is the period in the banking industry when they cannot be able to
meet up its target such as; objectives, dividends, staff remuneration in the
economy as a whole.
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