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An Assessment of the Economic Development Existence in Nigeria by Benedict N Global Journal of Management and Business Research: B Economics and Commerce Volume 13 Issue 5 Version 1.0 Year 2014 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 2249-4588 & Print ISSN: 0975-5853 An Assessment of the Economic Development Existence in Nigeria By Benedict N. Akanegbu & Matthew Oladapo Gidigbi Nasarawa State University, Nigeria Abstract - Poverty incidence and unemployment rate of the developing countries have been increasing as they claimed development in their economies, the situation in which Nigeria is not an exception. Thereby, this study set to investigate whether economic development existed in the country in the past 27 years, covering the periods of 1986 – 2012. Likewise, to inform the decision makers and policy implementers about the appropriate usage of the words ‘economic development’, and as well portends its redefining and differentiation between ‘GDP growth and GDP widening’. The study stipulated ideal methods of assessing the existence of economic development based on the extant definitions from the most relevant authors in the field of Development Economics. Keywords: economic development, gross domestic products, poverty, and unemployment . GJMBR-B Classification: JEL CODE: C13, O47, O10 Abstract - Poverty incidence and unemployment rate of the developing countries have been increasing as they claimed development in their economies, the situation in which Nigeria is not an exception. Thereby, this study set to investigate whether economic development existed in the AnAssessmentoftheEconomicDevelopmentExistenceinNigeria country in the past 27 years, covering the periods of 1986 – 2012. Likewise, to inform the decision makers and policy implementers about the appropriate usage of the words ‘economic development’, and as well portends its redefining and differentiation between ‘GDP growth and GDP widening’. The study stipulated ideal methods of assessing the existence of economic development based on the extant definitions from the most relevant authors in the field of Development Economics. Strictly as per the compliance and regulations of: Keywords: economic development, gross domestic products, poverty, and unemployment . GJMBR-B Classification: 0 © 2014. Benedict N. Akanegbu & Matthew Oladapo Gidigbi. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License http://creativecommons.org/licenses/by-nc/3.0/), permitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. An Assessment of the Economic Development Existence in Nigeria Benedict N. Akanegbu α & Matthew Oladapo Gidigbi σ Abstract- Poverty incidence and unemployment rate of the excluded and silent about with the exception of token developing countries have been increasing as they claimed aspect of ‘economic development measurement’. Quah development in their economies, the situation in which Nigeria (2001) buttresses its empirical measurements, even is not an exception. Thereby, this study set to investigate though, painstakingly. Little wonder, that the use of the whether economic development existed in the country in the term economic development is losing grip and turning to past 27 years, covering the periods of 1986 – 2012. Likewise, 2014 to inform the decision makers and policy implementers about be academic mess and political propaganda. Since, the the appropriate usage of the words ‘economic development’, masses could not witness any trickle down effects of the ear and as well portends its redefining and differentiation between proclaimed economic development constantly sing by Y ‘GDP growth and GDP widening’. The study stipulated ideal the government agents, especially, the policy-makers 55 methods of assessing the existence of economic development and implementers. The indigence has started seeing it based on the extant definitions from the most relevant authors as political brouhaha, cajoling, and hiding pillar for in the field of Development Economics. More so, the study political leaders. This calls for a shift of economic finds new ways of using time-series regression analysis in development measurement from a mere comparative answering logic-form question of economic development, and statics to a partial comparative dynamic measurement. this goes with variables’ signing rather than contributions. Based on partial comparative statics analysis, the study finds This will help in differentiating between Gross Domestic that economic development only existed in the country in the Products (GDP) widening – increment in the size of year1988 – 1990, and 1994 fiscal years during the years in Gross Domestic Products (GDP) warranted by increase consideration. In addition, based on partial comparative in the number of people who are either producing or dynamic analysis, the study finds that no economic consuming- and economic development, which trickle development has existed in the last 27 years in the country. down to reduce poverty incidence, unemployment, and Keywords: economic development, gross domestic inequality level in the society. Ultimately, it will be products, poverty, and unemployment. imperative to assess Nigeria’s economic development in B the light of new economic view of development by () I. Introduction deviating from its traditional view, which has no conomic development is an invented compound impressing measurement, but ordinary figure statement concept for recognizing economically backward of national outputs. or lagging behind countries, compared to other Historically, economic development and growth E became a concern of the so-called developed countries, countries who are topping in term of economic well- being of their citizens. Economic development is with the notion that ‘poverty anywhere is a threat to generally used in synonymous terms such as economic prosperity everywhere’, besides, it has been an arrow of growth, economic welfare, secular change, social justice the concerned-countries’ leaders, in bid of breaking off and economic progress, (Somashekar, 2003). Media the yoke of vicious cycle of poverty on their citizens circuses of economic development in the country, each which was not a flickering fire as it is today. fiscal year is not on a lighter mood, even though, it is a) Objective development without trickle down effects towards Universally, economists unanimously agreed masses. that economic development bring about reduction and/ th However, from 20 century to date, only comp- or elimination of poverty, inequality and unemployment. arative statics perspective of economic development Nevertheless, myriads of journal articles experimenting and growth has been under the limelight of economists, on the country’s data failed to relate the inconsistencies while an extensive part of its dynamic analysis is in the universal believe of the economists. This study tends to bridge the gap between the general believe of Global Journal of Management and Business Research Volume XIV Issue V Version I the economists and the happenings in Nigeria, with Author α : Department of Economics, Faculty of Social Sciences, respect to the indigent population. On this backdrop, Nasarawa State University, Keffi, Nasarawa State, Nigeria. the study sets to answer this question, ‘Does economic e-mail: [email protected] development in Nigeria implies reduction and elimin- Author σ : Department of Economics, School of Management and ation of poverty, inequality and unemployment? More Information Technology, Modibbo Adama University of Technology, Yola, Adamawa State Nigeria. e-mail: [email protected] so, the following are the specific objectives of the study: ©2014 Global Journals Inc. (US) An Assessment of the Economic Development Existence in Nigeria i. To investigate the existence of economic develop- technicalities of the concept ‘economic development’ pment in Nigeria between the periods of 1986 - needs being overlooked and conceived it in relation to 2012. comparatively long periods (Ibid.) ii. To correlate existence of growth in figure wise with/ Seer (1969) defined development as the to its impact on the country’s teeming population. occurrence that goes with reduction and elimination of This research article would help in informing poverty, inequality and unemployment within a growing decision makers and policy implementers about what economy. Furthermore, to sufficiently determine what they might probably need to do, in ensuring economic economic development means, he asserted: development translation from figure to reality in better- The questions to ask about a country’s ment of the citizens and society. More so, it will portend development are therefore: What has been happening whether growth exist or not. to poverty? What has been happening to unemplo- The study is structured into five sections. yment? What has been happening to inequality? If all Section I, which is the introductory part, and study three of these have declined from high levels, then 2014 objective inclusive. Section II covers the background beyond doubt this has been a period of development information about the operational concept of the study for the country concerned. If one or two of these central ear Y and its overall observed performance in the country. problems have been growing worse, especially if all Section III covers the model specification and method- three have, it would be strange to call the result 56 ology,
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