Open Access Original Research Article

Dynamic Linkage between Monetary Policy and Stock Performance in Nigeria: Cointegration and ECM Techniques

Ifeanyi A. Ojiako

South Asian Journal of Social Studies and Economics, Page 1-26
DOI: 10.9734/sajsse/2021/v10i330263

Aims: To explore the dynamic relationship between stock performance and the monetary policy instruments that influence Nigeria’s stock market activities.

Study Design: It uses secondary data collected from the Central Bank of Nigeria (CBN) Statistical Bulletin. The annual time series data cover a period of 38 years, from 1981-2018.

Methodology: The Augmented Dickey-Fuller (ADF) unit roots' test technique was used to verify the variables' time-series properties while the Johansen procedure was applied to confirm cointegration among variables. The short- and long-run relationships were analyzed after estimating the vector error correction model. Common diagnostic tests were conducted to validate the robustness of the model estimates.

Results: The results of tests of unit roots reveal all included variables as integrated of order one, I(1). The Trace-statistics showed that at least one cointegrating relationship exited among the time series, and the ECM was estimated. The emerging error correction term equation revealed the stock market performance as inversely related to both the credit to the private sector and the lending rate, but positively related to the money supply. Each variable was statistically significant (P<0.01). Also, the error correction term was well-behaved, being statistically significant (t=-3.17; P<0.01) and the desired negative sign, implying that previous periods' errors are correctable by adjustments in the subsequent periods, and to attain convergence. The error term had an adjustment speed of 44.19%. Granger-Causality analysis revealed a unidirectional causality relationship between the stock performance and the lending rate, with causality running from lending rate to stock performance, without a boomerang. The implication of the findings are threefold: the subsisting restrictive interest rate policy is unfavorable to long-term investment from the investors' perspective; the existing terms and conditions of the commercial credit packages had proven to be disadvantageous to long-term investment in Nigeria; and money supply as a monetary policy instrument in Nigeria had been used to boost investment and stock market performance. It is recommended that boosting investment and performance of the stock market in Nigeria would require the use of a more investment-friendly commercial lending rate, and relaxation of the stringent terms and conditions attached to the commercial private sector credit and loan packages. These measures would guarantee better access to fund and enhance ease-of-doing-business for investors.

Open Access Original Research Article

Design of Affordable Solar Photovoltaic Systems in Nigeria: A Cost Implication Analysis

Oji-Okoro Izuchukwu, Aimua Ehigocho Peace

South Asian Journal of Social Studies and Economics, Page 27-37
DOI: 10.9734/sajsse/2021/v10i330264

The demand for electricity generation around the world has significantly increased over the past decades, this is due to the growth in the world’s population, industrialization, economic activities and technological innovation; with various countries opting for alternative sources of renewable energy sources to replace the use of fossil fuel sources of energy whose availability has rapidly declined. The Nigeria power sector has experienced a major setback in power generation, distribution and the power consumption rates in the country has been very low compare to other African countries in electricity per capita. This study examines the designing of an affordable solar photovoltaic (PV) system in Nigeria using the cost and benefit method. Furthermore, a proposed PV electrification model was designed to calculate the Financial Internal Rate of Return (FIRR), Net Present Value (NPV) and Sensitivity analysis of installing a mini-grid system within the Federal Capital Territory (FCT). The result however showed that the system efficiency was calculated as FIRR was 17.5% and the NPV was at N320,897,841 which suggest that the project on this scale is economically viable in the FCT, making the life cycle cost per kWh, including the grid extension cost relatively low. Furthermore, the result obtained revealed that electricity generated from solar energy can contribute to the country’s economy and also eliminate or cut the pollution and toxic waste from the burning excess fossil fuel that releases large amount of CO2 into the atmosphere which affects human health and the environment.

Open Access Original Research Article

A Study on Biopesticides Market in Telangana

Kommoju Nagendra Kumar, P. Radhika, . Seema, D. Srinivasa Chary

South Asian Journal of Social Studies and Economics, Page 38-43
DOI: 10.9734/sajsse/2021/v10i330265

Biopesticides are a crucial component of integrated pest management programs for pest control. In India, so far only 12 types of biopesticides have been registered under the Insecticide Act, 1968. The present study entitled 'A study on biopesticides market in Telangana’ was intended to examine the marketing mix and BCG Matrix for selected biopesticide companies, awareness towards biopesticides. The results revealed that K N Bioscience company, Pratibha Biotech company and Varsha Bioscience company biopesticide products are useful for all crops and these companies products are mostly available in Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Maharashtra and Gujarat region. The prices of chemical pesticides in all categories are more than the price of biopesticides whereas the price difference ranges between Rs 230 to Rs 680. The BCG analysis shows that Verchi power and Paci-N power products of K N Bioscience company fall in the stars quadrant, Biostrom and Shock products of Varsha Bioscience company fall under the question marks quadrant, CID, Pro-kill and De-bug are the products of Pratibha Biotech company fall in cash cow quadrant. VBT and Toxin products of Varsha Bioscience company fall under the dog's quadrant.

Open Access Original Research Article

Influences of Socio-economic Factors on Lemon Pest Management Practices in Tangail District of Bangladesh

Shahriar Hasan, Md. Enamul Haque, Md. Safiul Islam Afrad, M. Zinnatul Alam, Muhammad Ziaul Hoque, Md. Riazul Islam

South Asian Journal of Social Studies and Economics, Page 59-67
DOI: 10.9734/sajsse/2021/v10i330267

Aims: The main objective of the study was to explore the influences of socio-demographic factors of lemon cultivators on accepting pest management practices.

Study Design: A total of 120 lemon growers of the Tangail district were selected as samples following the proportionate random sampling technique. Primary data were collected from sampled respondents using a pre-designed and pre-tested questionnaire by face-to-face interview.

Results and Discussion: Findings indicate that majority of the respondents were middle-aged (69.2%), having a secondary level of education (47.5%), small farm size (73.3%), medium family size (57.5%), and medium use of information sources (74.2%). Farmers use chemical, mechanical, and cultural pest management practices, with the majority of respondents had a moderate degree of adoption. Education, annual family income, contact with the source of information, and organizational participation of the respondents showed positive significant relationships with their adoption of pest management practices. High input price, low market price of the product, disease, and pest attack was identified as the major problems faced by the lemon growers.

Conclusion: Adoption of pest management practices significantly influenced by socio-economic factors of lemon growers. Hence, agricultural extension agents should step forward to work with different groups of farmers for raising their knowledge of integrated pest control and improve expertise in lemon cultivation. Furthermore, the government should take the requisite steps to address issues such as high production costs, low commodity prices, and disease and pest infestation.

Open Access Review Article

Do Labour Migrants Bring Well-Being to the Households? Revisit the Pathway from Neoclassical to Pluralism

Dinesha Siriwardhane

South Asian Journal of Social Studies and Economics, Page 44-58
DOI: 10.9734/sajsse/2021/v10i330266

Aim of this review is to review literature on the impact of international labour migration and remittances on household well-being and present a theoretical and a conceptual framework to facilitate empirical studies. Study found that, migration literature comprises diversified views which has been changed in different era with the changing socio-economic contexts of emigrating and immigrating countries. Present view, which is highly dominated by pluralists, provides theoretical foundation to link migration and remittances to household well-being. Theoretical and conceptual frameworks developed in this review provides a strong foundation for empirical analysis.