Top PDF Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

Exploring Economic Growth and Environment Nexus in Nine Southeastern European Countries

emissions are classified as one of the main driving forces behind global warming today" (Friedl & Getzner, 2003). These authors further elaborate that GHG emissions are rising despite joint efforts enforced by international agreements such as the Kyoto Protocol (Friedl & Getzner, 2003) and the currently effective Paris Agreement. The Paris Agreement, signed by all SEE countries, recognises that deep reductions in global emissions are required in order to achieve the ultimate objective of the Convention (unfccc.int, 2018). However, the Paris Agreement recognises that none of the world's leading powers can be compelled to drastically reduce harmful emissions. However, it introduces a system based on the country's promise to reduce harmful emissions, thus creating an international system of responsibility for climate change. "In this sense, the Paris climate summit marks the beginning of a new era in international climate policy, which offers the chance of more durable international cooperation" (Falkner, 2016).
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Exploring Nexus between Urbanization Growth and Environment: with Reference to South Asian Countries

Exploring Nexus between Urbanization Growth and Environment: with Reference to South Asian Countries

The present research is purely analytical type of research which exclusively relies on secondary data. The necessary data has been collected from the report of the World Bank. The collected data has been processed and tabulated by using Excel Software. The statistical tools such as , multiple correlation, log- linear regression equations are applied for data analysis and interpretation. The present paper has considered ten years period from 2001-02 to 2010-11 and attempts were made to examine the coiled nexus between urbanization, economic growth and environment quality in context of South Asian countries namely Afghanistan, Bangladesh, Bhutan, India, Iran, Maldives, Nepal, Pakistan and Sri Lanka. In case of absences of some indicators of time series data the panel data has been used.
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Economic Growth and Environment Nexus: The Role of Foreign Direct Investment

Economic Growth and Environment Nexus: The Role of Foreign Direct Investment

Chung (2014) enquired into how environmental regulation shapes the pattern of foreign direct investment in South Korea through an assessment of the pollution haven hypothesis. Due to the conflicting results observed in the case studies of most advanced economies, due to the deterrent effect of clean technology adoptions on industry migration and the need to minimize the effect of clean technology, the study examined the pattern of South Korean foreign direct investment over 2000 to 2007 which is the period that Korean firms relied on old production technologies despite facing rapidly strengthened environmental standards. The study found strong evidence that polluting industries tend to invest more in countries with relaxed environmental regulations. He (2006) looked at environmental impact of foreign direct investment in Chinese provinces. It constructed a simultaneous model to study the FDI–emission nexus by exploring both the dynamic recursive FDI entry decision and the linkage from FDI entry to final emission results under the intermediation of the scale, composition and technique effects. The study observed that foreign direct investment inflow has a positive effect on sulphur emission in China.
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Exploring the Nexus of Coal Consumption, Economic Growth, Energy Prices and Technological Innovation in Turkey

Exploring the Nexus of Coal Consumption, Economic Growth, Energy Prices and Technological Innovation in Turkey

This study mainly attempts to cast light into the dynamic relationships between coal consumption, economic growth, energy price and technological innovation in Turkey over the period of 1980-2015. Based on the results drawing from an autoregressive distributed lag (ARDL) model, coal consumption, economic growth, energy price and technological innovation are cointegrated. Specifically, the empirical results indicate that economic growth positively affects coal consumption, whereas technological innovation negatively affects it over a long-run. Regarding short-run dynamic relationships, economic growth and technological innovation have a positive impact on coal consumption. The results from the autoregressive integrated moving average (ARIMA) model suggest that an annual average growth rate of coal consumption will be 2.02% between 2016 and 2025. Regarding policy implications, the results of this study suggest that policy makers should allocate more resources to research and development on energy technologies to improve energy efficiency in Turkey.
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The human capital economic growth nexus in SSA countries: What can strengthen the relationship?

The human capital economic growth nexus in SSA countries: What can strengthen the relationship?

Table 5 presents our FMOLS and DOLS estimates from two endogenous growth specifications, the first representing a simplified dynamic endogenous growth specification consisting of human capital, labour employment and capital investment whereas the second augments the first by including other control variables such as government size as well as trade openness. As should be firstly observed from the first column of the results reported in Table 5, the impact of human capital on economic growth is insignificant in all four estimated regressions. Notably this evidence is contrary to that obtained for previous SSA economies as found in Gyimah-Brempong and Wilson (2004), Hakeem (2010), Ogundari and Awokuse (2018) and Ibrahim (2018). However, as conveniently explained in the recent study of Ahsan and Hauqe (2017) the relevance of human capital on generating economic growth in a region is contingent on the level of development. Henceforth, economies should attain a certain level of development before reaping the economic rewards of human capital development. Another controversial finding are the insignificant estimates obtained for the investment variable which according to dynamic growth theory is considered the ‘engine of dynamic economic growth’. However, we are not entire startled by our findings as a similar insignificant estimate on the investment variable has been previously established in the works of Mothuthi and Phiri (2018) and Phiri (2019) for the South African economy. As explained by these authors, a greater part of Africa’s investments are not ‘Greenfield investments’ but are rather mergers and acquisitions. Notably, the remaining growth determinant variables such has labour employment, government size and trade openness produce their expected positive and statically significant estimates. Moreover, the adjusted R 2 values associated with the regressions lie
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The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition

The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition

where i ∈ I , p denotes the lag length and t=p+1,.., T. A constant source of conflict in the freedom-GDP growth literature is the appropriate use of fixed and random effects. It turns out that previous empirical studies used different, and often even incompatible, definitions of these two effects. In practice the Hausman test is often applied to choose which type of effects should be considered. However, this procedure has relatively poor small sample properties. Moreover, the results of this simple test cannot be treated as more important than the well-justified theoretical structure of the model. As a consequence the same factor could be “fixed” according to one definition and “random” in another. This problem was caused not only by subtle intricacies in mathematical aspects of models, but often by the lack of a clear conception of the research. In this paper we follow the suggestions of Gelman (2005) and instead of using the overloaded terms “fixed” and “random” we consider two types of effects (or coefficients) in a multilevel model: “constant”, if they are identical for all members of a group, and “varying”, if they are allowed to differ from country to country. Thus, the models in (1) and (2) allow for varying effects in the intercept terms (some preliminary results (available from the authors upon request) based on significance tests provided no solid evidence in favor of adding any time trends (constant or varying) in models (1) and (2)). When turning to estimation details (including the choice of method of evaluating variance of the error term), we rely on the standard OLS-related methods, since in the case of our dataset it is rather hard to justify the use of linear unbiased prediction (Robinson 1991) approach.As already mentioned, application of one simple model constructed for a very large group of (often dissimilar) countries may sometimes lead to formulation of spurious conclusions. This paper is aimed at describing the structure of freedom-growth causal links only for a particular group of (relatively similar) CEE countries. In other words, in our research the sample used exhausts the underlying population, which actually makes decomposition of the variance of error term needless (Gelman 2005).
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The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition

The Nexus between Improvements in Economic Freedom and Growth: Evidence from CEE Countries in Transition

where i ∈ I , p denotes the lag length and t=p+1,.., T. A constant source of conflict in the freedom-GDP growth literature is the appropriate use of fixed and random effects. It turns out that previous empirical studies used different, and often even incompatible, definitions of these two effects. In practice the Hausman test is often applied to choose which type of effects should be considered. However, this procedure has relatively poor small sample properties. Moreover, the results of this simple test cannot be treated as more important than the well-justified theoretical structure of the model. As a consequence the same factor could be “fixed” according to one definition and “random” in another. This problem was caused not only by subtle intricacies in mathematical aspects of models, but often by the lack of a clear conception of the research. In this paper we follow the suggestions of Gelman (2005) and instead of using the overloaded terms “fixed” and “random” we consider two types of effects (or coefficients) in a multilevel model: “constant”, if they are identical for all members of a group, and “varying”, if they are allowed to differ from country to country. Thus, the models in (1) and (2) allow for varying effects in the intercept terms (some preliminary results (available from the authors upon request) based on significance tests provided no solid evidence in favor of adding any time trends (constant or varying) in models (1) and (2)). When turning to estimation details (including the choice of method of evaluating variance of the error term), we rely on the standard OLS-related methods, since in the case of our dataset it is rather hard to justify the use of linear unbiased prediction (Robinson 1991) approach.As already mentioned, application of one simple model constructed for a very large group of (often dissimilar) countries may sometimes lead to formulation of spurious conclusions. This paper is aimed at describing the structure of freedom-growth causal links only for a particular group of (relatively similar) CEE countries. In other words, in our research the sample used exhausts the underlying population, which actually makes decomposition of the variance of error term needless (Gelman 2005).
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Education-Economic Growth Nexus: A Review

Education-Economic Growth Nexus: A Review

relationship. It reviews both the theoretical as well as empirical literature relevant to education-economic growth nexus. The study of economic growth is an old area but addition to the determinants remained a unceasing during the history. The human capital-economic growth relationship is evident even from Adam smith theories. However, it got formal recognition in New Growth theories. The literature shows that human capital is not measurable directly; instead, some proxies are used for it. Education, health, research and development, experience and skills are some of the most commonly measures for human capital. Education as a determinant has been used extensively. Some of the studies recognize its positive role while others negative. Different levels of education showed different type of effects. It is concluded on the basis of reviewed literature that human capital in form of education affects economic growth through different channels.
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The foreign investments phenomena in southeastern European countries

The foreign investments phenomena in southeastern European countries

The levier available to the local governments in order to attract foreign investors remain the promotion of the internal resources from which the foreign companies may take advantage and why note the success of the modern packages of tax incentives, here referring to the industrial parks, were the support of research and innovation in high technologies combines with the economic success of the productive and commercial companies.

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CULTURAL DETERMINANTS OF ECONOMIC GROWTH: THE CASE OF EUROPEAN COUNTRIES

CULTURAL DETERMINANTS OF ECONOMIC GROWTH: THE CASE OF EUROPEAN COUNTRIES

It could be argue that the agency appears as a competitor for the parallel associations and as a consequence obtains a rent in competitions with these. The validity of this observation is limited by the fact that the agency is not a “normal” economic agent: the scale effect will place it in an almost-monopolistic position. In other words, despite the existence of the parallel associations, the agency preserves its capacity to control the “largest” fraction of the social output and its activity could not be judge in the market usual context. The transfers imposed by the agency have from its point of view an operational nature and are destined, at least in principle, to be returned in the future periods, to the clients and non-members. So those, in this argumentation, the transfers are not a form of rent; only the “normal” fraction aw , which is the price of agency’s services, could be seen as a monopolistic rent. The main conclusion that could be derived from this argumentation is that the transfers are not the direct result of an exploitation process since the conditions for such process are not fulfilled 10 . But as we had mentioned above, the transfers
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External Debt-Economic Growth Nexus in Developing Countries: Evidence from Ethiopia

External Debt-Economic Growth Nexus in Developing Countries: Evidence from Ethiopia

The historical debt crisis experienced by Sub-Saharan African countries which, as it has been argued by different scholars, resulted from a complex combination of elements, some of which are exogenous to the debtor countries, while others are direct results of wrong policies, is used as a bench mark for studying the impact of external debt on economic growth. Over the past two decades or so, economist and policy-makers have suggested alternative proposals and tried different remedies to reduce or solve the external debt problem of poor counties. One proposal was the rescheduling of non-concessional loans. However, it was realized later that inefficient government policies could hinder the beneficial effects of debt reform. This led to proposals of raising the level of foreign lending (at lower interest rates) to heavily indebted developing countries, contingent on domestic policy reforms such as reduced public sector deficits and export promotion. More recently, when countries accumulate loans and have difficulty in repayment, debt relief has been suggested (AmaniElnasri, 2006).
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Growth-Trade-Environment Nexus in India

Growth-Trade-Environment Nexus in India

The estimated results from both the random effects model and fixed effects model are reported in Table 1, 2 and 3 for SO 2 , NO 2 and SPM respectively. The Hausman test statistic suggests that random effects model is more appropriate for SO 2 and NO 2 while fixed effects model is a better fit for SPM. So while discussing the results we will refer to the estimates for these models for their corresponding pollution parameters. A perusal of the results shows that the scale effect is positive for all the three pollutants. However, the magnitude of this effect varies across the three pollutants with having the strongest effect for SO 2 . On the other hand, the technique effect is negative for all three parameters but again having the strongest effect for SO 2 . So, the results suggest that there is evidence of negative technique effect which tend to reduce the adverse environmental impacts of the scale effect but the former is decidedly weaker than the latter effect. This finding for India for scale and technique effects is opposite to what Antweiler et al. (2001) found for their cross-country study. They have found a stronger technique effect than scale effect. One explanation for this deviation in results is of course the coverage of countries in the data set. Their data is more dependent on observations from developed countries and thus a stronger technique effect is not surprising. However, in a developing country like India, a stronger scale effect is what is expected; nevertheless, a statistically significant technique effect is rather interesting.
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The Impact of Economic Growth on Pollution in Developed European Countries

The Impact of Economic Growth on Pollution in Developed European Countries

for a yearly panel data of 40 European economies, through the period of study beginning on 1985 to 2014. To examine this fundamental link, they exploit the Cobb–Douglas production function. Their empirical conclusions point to a bidirectional Granger causal linkage amid GDP and pollution, GDP and financial sector development, GDP and openness trade, financial sector development and trade openness, and trade openness and pollution in the case of European economies. From the causal link between GDP and environmental pollutants, they authorize the existence the validity of the environmental Kuznets curve hypothesis. Also, they substantiate out the feedback suggestion of the bidirectional causality amid trade openness and financial sector development. Besides, they discover the neutrality hypothesis linking carbon emissions and financial sector development inflows. They find the occurrence of the bidirectional nexus amid GDP and financial sector development and among GDP and trade openness in the European countries. Finally, Granger causality verifies that bidirectional causal connection is found among economic development, environmental degradation (CO2), financial progress, and trade openness. Jamel and Maktouf (2017) check the causal link among economic growth (GDP), CO2 emissions (environmental degradation), financial development and trade openness by utilizing the ordinary least squares technique for a yearly panel data of 40 European economies, through the period of study beginning on 1985 to 2014. To examine this causal association, they utilize the Cobb-Douglas production function. Their empirical conclusions point to a bidirectional Granger causal connection among GDP and pollution, GDP and financial sector development, GDP and openness trade, financial sector development and openness trade and trade openness and pollution in the case of European economies. From the fundamental link amid GDP and environmental pollutants, they authorize the continuation of the environmental Kuznets curve hypothesis. Also, they prove the feedback suggestion of the bidirectional causality amid openness trade and financial sector development. Besides, they conclude the neutrality hypothesis linking CO2 emissions and financial sector development inflows. Finally, they show the occurrence of the bidirectional nexus amid GDP and financial sector development and amongst GDP and trade openness in the European economies.
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Investment, inflation and economic growth nexus

Investment, inflation and economic growth nexus

The existence of two threshold levels implies that inflation can be divided into three parts. As inflation rises from zero to six percentage point, the effect on economic growth is negligible or even positive. As inflation crosses the low threshold level, it has significant and negative impact on the GDP up to a certain level. When inflation crosses second threshold level, the marginal adverse impact of inflation on growth diminishes. The smaller negative coefficient illustrate that the inflation growth relationship flattens when the economy has high inflation. Intuitively, we can say that once inflation exceeds a threshold level, all of the damage to the financial system has already been done, and then perfect foresight dynamics comes into being. When these occur, further increases in inflation have no additional detrimental effects on economic growth (Li, 2006).
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Foreign Aid, FDI and Economic Growth in East European Countries

Foreign Aid, FDI and Economic Growth in East European Countries

findings suggest that FDI is an important vehicle for the transfer of technology and it contributes more to growth than does domestic investment. Their findings, however, also suggest that FDI is more effective in enhancing economic growth only in countries where the level of education (a measure of absorptive capacity) is high. Bosworth and Collins (1999) also conduct a comprehensive examination of the effect of FDI in 58 developing countries of Asia, Africa and Latin America from 1978 to 1995. Their empirical analyses indicate that a one-dollar increase in capital inflow (of all types) is associated with a fifty- cent increase in domestic investment. Separately, FDI has a one-to-one dollar increase in domestic investment. A recent study by Trevino and Upadhyaya (2003) using pooled time series data from five developing Asian countries finds that FDI positively
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Survey on appropriateness of use of nimesulide in nine European countries

Survey on appropriateness of use of nimesulide in nine European countries

Appropriateness of use is a key factor in safeguarding the health of patients. The marketing authorization holder of the original nimesulide (Helsinn Healthcare, Lugano, Switzerland) and the European Medicine Agency (EMA) agreed on a “Dear Healthcare Professional Communication” (DHPC) to explain the positive benefit/risk profile of nime- sulide when used for its approved indications.

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Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries

Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries

Moreover, greater inequality in income distribution and positive variations in energy intensity reduce the rate of growth in the private capital share of GDP. Our findings that inequality has a negative influence on investment and thus on economic growth is in line with that of García-Peñalosa and Wen (2008), who argue that redistribution provides insurance to agents undertaking risky activities, which reduces income uncertainty, thus inducing more entrepreneurship. This result also confirms the well-established relationship between inequality and institutions: a robust body of literature establishes that the inequitable distribution of resources creates rent-seeking policies and exploitative and inefficient economic institutions that stifle entrepreneurship and growth (Acemoglu, Johnson and Robinson, 2001; Banerjee and Iyer, 2005; Engerman and Sokoloff, 2005). As a consequence, reducing high levels of inequality is important in influencing the quality of institutions to remove socio-institutional frictions that hinder investment and economic growth. Returning to the estimation results, the short-run elasticities for the GINI index are up to three times greater in the high network interaction sub-sample than in the full-sample, for which the measure is -1.444%. A similar effect is found for variations in energy intensity: the short-run elasticity measures for energy intensity variation in the high network interaction and high competition sub-samples are three times greater than those in the full-sample analysis. Once again, these results show that the sub-samples chosen for this study are crucial in giving a clear and comprehensive view of the link between private investment growth and inclusive institutions.
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The nexus between mobile phones diffusion, financial inclusion and economic growth: evidence on African countries.

The nexus between mobile phones diffusion, financial inclusion and economic growth: evidence on African countries.

economics. Bernanke (1986) and Elbourne (2008), amongst others have criticised the VAR method which was pioneered by Sims (1980) in studying the impulse response functions between variables in the short run for failing to cater for the needs of researchers interested in shocks other than monetary policy shocks. The shortcomings of VAR gave birth to Structural VAR (S-VAR) which is superior to the prior alternatives of VAR models as it accounts for economic information that lays unembellished the rationale for the restrictions that helps identify other shocks. The other strength of panel SVAR models is that it uses economic theory to identify the concurrent relationships between variables (Canova, 2007). The SVAR, therefore, suits well as an alternative improvement to VAR approach. Several authors have recently applied SVAR in banking and finance-related studies. Love and Zicchino (2006) and Graeve and Karas (2010), have applied the VAR to study the bank run. However, the limitation of both the VAR and S-VAR is that they only handle time series data which restricts their applicability to one economy, and slow down the gains of S-VAR in terms of handling studies interested in shocks outside monetary policy but is still able to pool panel data for African countries. Further efforts to capture transmissions effects and interdependencies across countries and economic units led to the creation of the Panel VAR (PVAR) (Canova and Cicarrelli, 2014), plagued with the problem of dimensionality. Moreover, S-VARs overcome the limitation of PVARs while making certain that the dynamic behaviour of the VARs in the model is captured which corresponds to this study. In addition, S-VARs allow the recovery of interesting patterns in the VARs using the minimum amount of theory which is essential in fields with little or no theoretical consensus (Graeve and Karas, 2010), as in the case with this study. Furthermore, using SVARs, this study remains focused when faced with different countries under review, as it affords the flexibility and dynamic cross-section and slope heterogeneity (Cannova and Ciccarelli, 2014).
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Fiscal stimulus and the improvement of fiscal space by economic growth: a study of European countries with low economic growth

Fiscal stimulus and the improvement of fiscal space by economic growth: a study of European countries with low economic growth

In this thesis, it is studied whether the fiscal stimulus can be seen increasing the economic growth such largely that the fiscal stimulus does not tighten further the government fiscal space in the European countries France, Italy, Portugal, Spain, Slovenia and Finland in the year 2014. This is assessed by the study of the depressed economy, comparing the change in the fiscal debt of GDP when the government has stimulated the economy to the case it has not stimulated. In Slovenia the economic growth has been such high in the year 2014 that its economic growth can be no longer regarded to be low, and thereby the study of the depressed economy less represent the fiscal debt of GDP dynamics in the country by the economic growth. The sample of the European countries is used to estimate the values of yearly fiscal multipliers that represent the average increase in the annual economic growth in the sample of the countries when the economy is stimulated. To the extent, as these fiscal multipliers are used to examine, how the fiscal stimulus impacts on the fiscal debt of GDP, the study on the depressed economy reflects on how the fiscal stimulus affects the fiscal debt of GDP in those European countries. In the analysis, it is presumed that the government does not increase the expenditures in the further periods. Thereby the higher economic growth reduces the fiscal deficits over time because the economic growth leads to increase in the tax revenues according to tax ratio. The fiscal stimulus is in the study considered to be an increase in the government consumption that is one per cent of GDP. In the study, it is found that using the fiscal stimulus such a large increase in the economic growth is achieved, that when there is one percentage higher fiscal deficit of GDP, the fiscal debt of GDP increases less than in the case the economy is not stimulated. Thereby the result also shows, that as the fiscal stimulus reduces the growth in the fiscal debt of GDP, there is less need to be concerned that the fiscal stimulus would tighten the government fiscal space more than in the case it is not stimulated the economy. The initially low economic growth that is one per cent, leads to that the fiscal debt of GDP increases further when the government fiscal deficit is three percentages of GDP. Thereby this result shows that the fiscal debt of GDP to be reduced during the five-year period requires a larger increase in the economic growth than what is estimated to be achieved by the fiscal stimulus according to the fiscal multipliers. In the analysis, a low interest rate on the government debt is presumed, as found to be prevailing in the surveyed European countries during the year 2014. This supports that the larger fiscal debt taking does not lead to the considerably higher accumulation in the interest on the fiscal debt.
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Employment and Economic Growth Nexus in Nigeria

Employment and Economic Growth Nexus in Nigeria

Thus the high level of unemployment currently experienced in Nigeria can be attributed, ceteris paribus, to the relatively low employment intensity of GDP growth as measured by the observed employment elasticity of 0.05. Second, the negative relationship between the level of employment and foreign private investment is pointing to the fact that either the private investors are using the ‘wrong’ technology of production in terms of using capital- intensive, rather than labour intensive method of production in a labour-surplus economy like Nigeria. Alternatively, the foreign investors might be using FPC to create jobs, not for Nigerians, but for their own nationals if they end up hiring their own nationals and import them to the host country,Several implications for policy formulation and further research can be gleaned from this study. Given the observed low elasticity of employment relative to the recommended benchmark, the public sector has a key role to play in job creation alongside the private sector. Thus, in addition to providing the necessary macroeconomic environment for economic growth enhancement, government policies on the quantum and direction of public expenditure are expected to improve employment generation which is expected to increase the level of output. The negative relationship between the log of FPC and EMP is probably an indication that the foreign capital in the Nigerian economy within the period of study is not labour intensive but rather capital intensive. An appropriate policy to reverse this trend is expected to contribute significantly to employment generation.
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