Is Macroeconomic Instability a Preventive Measure in Attaining Sustainable Development Goals in Nigeria?
Keywords:
Macroeconomic; Instability; Sustainable; Development; Goals.Abstract
This study evaluates the impact of macroeconomic instability on Nigeria’s quest to attain the sustainable development goals set by the United Nations by 2030. The impact of macroeconomic instability was viewed from three different perspectives which are: as a source of macroeconomic outcome, domestic sources, and external sources of instability. The structural vector autoregressive model and the generalized forecast error variance decomposition were adopted to gauge the short-term and future impacts of attaining these goals. Findings from the study suggest that the impact of instability resulting from macroeconomic outcome have been moderate. Nevertheless, they are not to be taken for granted. While shocks from domestic sources have not been really preventive in attempts at meeting the set goals. Shocks from external sources, and specifically emanating from oil price, constitute a huge cause of concern if Nigeria is to achieve the set goals by 2030.
References
References
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Adedokun, A. (2018). The effects of oil shocks on government expenditures and government revenues nexus in Nigeria (with exogeneity restrictions). Future Business Journal. Vol.4, pp 219-232.
Aizenman, J., and Pinto, B. (2005). “Overview” In Aizenmann, J. and Pinto, B. eds., Managing Economic Volatility and Crises. Cambridge, United Kingdom: Cambridge University Press.
Aladejare, S. A. (2018). Resource Price, Macroeconomic Distortions, and Public Outlay: Evidence from Oil-Exporting Countries. International Economic Journal. Vol. 32(2), pp. 199-218.
Aysan, A. F. (2007). The Effects of Volatility on Growth and Financial Development through Capital Market Imperfections. METU Studies in Development. Vol. 34(1), pp. 1–18.
Canton, E. (2002). Business Cycles in a Two-sector Model of Endogenous Growth. Economic Theory. Vol 19, pp. 477–92.
Chow, Y. P., Muhammad, J., Noordin, B. A. A., and Cheng, F. F. (2018). Macroeconomic Dataset for Generating Macroeconomic Volatility among Selected Countries in the Asia Pacific Region. Data in Brief. Vol.16, pp. 23-28.
Dauvergn, P. (1999). The Environmental Implications of Asia’s 1997 Financial Crisis. IDS Bulletin. Vol. 30(3), pp. 31–42.
Gaveau, D. L. A., Matthew L., Patrice L., and Nigel, L. (2009). Three Decades of Deforestation in Southwest Sumatra: Effects of Coffee Prices, Law Enforcement, and Rural Poverty. Biological Conservation. Vol. 142(3), pp. 597–605.
Ghosh, A. R., and Jonathan, D. O. (1997). Macroeconomic Uncertainty, Precautionary Saving, and the Current Account. Journal of Monetary Economics. Vol 40(1), pp. 121–39.
Grier, K. B., and Tullock, G. (1989). An Empirical Analysis of Cross-national Economic Growth, 1951–1980. Journal of Monetary Economics. Vol. 24, pp. 259–76.
Haddad, M., Lim, J. J., Pancaro, C., and Saborowski, C. (2013). Trade openness reduces growth volatility when countries are well diversified. Canadian Journal of Economics/Revue Canadienne d'Economique, Vol.46(2), pp. 765-790.
Hausmann, R., and Hidalgo, C. A. (2011). The network structure of economic output. Journal of Economic Growth. Vol. 16(4), pp. 309-342.
Hnatkovska, V. V. and Loayza, N. V. (2004). Volatility and growth. Policy Research Working Paper Series 3184, The World Bank.
Huang, Y. (2010). Determinants of Financial Development. Basingstoke, U.K.: Palgrave Macmillan Press.
Karras, G. (2006). Trade Opennes, Economic Size, and Macroeconomic Volatility: Theory and Empirical Evidence. Journal of Economic Integration. Vol. 21(2), pp. 254-272.
Kharroubi, E. (2007). Crises, Volatility, and Growth. World Bank Economic Review. Vol. 21(3), pp. 439–60.
Kim, D.H., Lin, S.C., and Suen, Y.B. (2016). Trade, growth and growth volatility: New panel evidence. International Review of Economics & Finance, Vol. 45, pp. 384-399.
Koren, M., and Tenreyro, S. (2007). Volatility and Development. Quarterly Journal of Economics. Vol. 122(1), pp. 243–87.
Kormendi, R, and Meguire, P. (1985). Macroeconomic Determinants of Growth: Cross-country Evidence. Journal of Monetary Economics. Vol 16(2), pp. 141–63.
Loayza, N. V., Ranciere, R., Serven, L., and Ventura, J. (2007). Macroeconomic Volatility and Welfare in Developing Countries: An Introduction. The World Bank Economic Review, Vol. 21(3), pp. 343-357.
Mireku, K., Agyei, E. A., and Domeher, D. (2017). Trade Openness and Economic Growth Volatility: An Empirical Investigation. Cogent Economics and Finance, Vol.5, pp.1-11.
Ramey, G., and Ramey, V. A. (1995). Cross Country Evidence on the Link between Volatility and Growth. American Economic Review. Vol. 85(5), pp. 1138–51.
Sims, C. A. (1980). Macroeconomics and Reality. Econometrica, Vol. 48(1), pp. 1–48.
Sustainable Development Solution Network (SDSN). Indicators and a Monitoring Framework for the Sustainable Development Goals. A report to the Secretary-General of the United Nations by the Leadership Council of the Sustainable Development Solution Network. June 15, 2015.
Ukwu, I. U., Obi, A. W., and Ukeje, S. (2003). Policy Options for Managing Macroeconomic Volatility. A publication of the African Institute for Applied Economics Publication. Pp. 1-44.
World Bank. (2000). Securing Our Future in a Global Economy. Washington, D.C.
Published
2020-09-03
How to Cite
Aladejare, S., Nyiputen , I. ., & Osagu, F. (2020). Is Macroeconomic Instability a Preventive Measure in Attaining Sustainable Development Goals in Nigeria? Array. Acta Universitatis Danubius. Œconomica, 16(5). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/264
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Economic Development, Technological Change, and Growth
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