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Applying  an extended  IS-­LM  model  to  South Africa,this paper finds that fiscal expansion reduces output and causes real appreciation and that monetary expansion increases output and leads to real depreciation. Besides, a lower real interest rate or  a  higher  stock  price  helps  raise  output; and  a  higher  real interest  rate or a higher stock  price results in real depreciation.Hence,  except  for  the negative  impact  of  fiscal  expansion  on output,  the  predictions  of  the  Mundell­ Fleming  model  are applicable to South Africa.

Keywords: Fiscal  expansion,  monetary expansion,  exchange  rates, Mundell-Fleming  model.

JEL Classification: E52,  E62,  F41.

Yu Hsing. Does the Mundell­ Fleming Model Apply to South Africa?. Journal of Money,Banking and Finance, Vol. 6, No. 2, 2020, pp. 89­-98

The focus of this paper is to determine the extent international remittance inflows predict the growth of Nigeria’s domestic economy ranging from 1980 to 2019. To achieve such objective, the author adopted VEC Granger causality test for estimation of the parameters specified in the models. This is complimented with other standard econometric pretests and post­tests such as unit root tests, co integration tests as well as vector error correction model to determine the properties of the time series data used for the analysis. The result of the analysis indicates that the series employed for the analysis exhibits longrun co integration. The Vector Error Correction Model (VECM)results also show a negative significant relationship between international remittance inflows and real gross domestic product in the short run as indicated by at statistics coefficient of ­6.874905 and a p­value of 0.0087. Consequently, from the long run  result of  the VECM,  international remittance  inflow maintained a negative relationship with economic growth in the long run. The Wald test indicates no causality among RGDP, IRIGWT, ODAGNI, BOT and INF. VECM in the second equation of the study shows a positive insignificant relationship between international remittance inflows and domestic credit to private sector in the short run within the period under consideration with a t­ statistics of 0.053623 and p­value of 0.6807. However,from the long run result of the VECM in the second equation,international remittance inflows indicate a negative relationship with domestic credit to the private sector in the long run. The result of the error correction model in the short run as indicated by the lower chamber of VECM showed a positive significant correlation between overseas development assistance and gross domestic product as indicated by the t­ statistics of 8.643742 and p­value of 0.0097. The result from the upper chamber of the VECM indicates a negative relationship between  overseas development assistance and economic growth in the long run.The implication of the study is that international remittance inflows have not translated  considerably to the growth of Nigerian economy. In view of the above findings, the study makes the following recommendations: the federal government should adopt strict policy measures to regulate international remittance inflows to Nigeria by ensuring proper investment of greater percentage of all remittances. This can be done by insisting that all remittance above certain level be accompanied with an investment plan or properly taxed. In order to encourage remittances passing through the official channel, the Central Bank  of  Nigeria  should  ensure  that transaction  cost  of international remittance inflows are kept very minimal.

Keywords: Remittance inflows, VectorError correction model, Granger Causality, Waldtest, Correlation,

Titus Chinweuba Eze. Modeling the Relationship between Remittance Inflows and the Growth of Nigeria’s Domestic Economy: VEC Granger Causality Test Approach. Journal of Money, Banking and Finance, Vol. 6, No. 2, 2020, pp. 99-­122

The  Anchor   Borrowers’  Programme  (ABP)  was initiated to create an ecosystem that connects small farm owners to big processors within the economy with a view to improving capacity  utilization and  promoting  exports  by  exhibiting potential in the promotion of locally produced goods. Thus, with this  feat, one  can  say that the local  manufacturers  are, without doubt,  on  the verge of  meeting up with  international standard towards  enhancing  patronage  from  both  local  and  foreign consumers.  It  is  on  this  note  that  this  paper  examined  the potential of domestic  industrial output  on  economic  growth  in Nigeria.  An  Auto regressive  Distributed  Lag  (ARDL)  model procedure  was  employed  and  the  results  revealed  that  the contribution  of  the  domestic  industrial  output  to  economic growth was appalling which was necessitated by the worrisome image  of  “Nigerian”  goods.  The  study  concluded  that domestic production in Nigeria has been lagged behind in terms of  output performance  in  the economy.

Keywords: Domestic output, Capital, Labour, Made-in-Nigeria, Gross Domestic Product (GDP)

Fasoye Kazeem and Olayiwola Abiodumn Sunday. Impact of Domestic Industrial Output on Economic Growth in Nigeria. Journal of Money, Banking and Finance, Vol. 6, No. 2, 2020, pp. 123-135

The  present  study  provides  evidence  of the  link between environmental conservation awards in form of carbon credits and the firm’s profitability. This  investigation is  base don  firms, which use to disclose revenues  generated from  the carbon credits in their annual reports. By using sample firms’data from 2011 to 2015, the results of the study reveal that carbon revenue significantly affects sample firms’ profitability.  More specifically, earning of the shareholders are  affected most by the trading of carbon credits because it affects the profitability and therefore the amount left for the shareholders will be less if they  do  not  include  the  carbon  credits.  Like  in  Gujarat Fluor chemicals Ltd the EPS for the year 2014­-2015 would have been decreased by 112.94% due to the decrease in the sales by 42.35% if the company would have ignored the revenues from the carbon credits. The findings of this study are of considerable importance  to  strategic  policy  makers,  firms  and  other stakeholders.

Keywords: Carbon Credit, India,Revenue, Climate Change ,Performance.

Praveen  Kumar.  The Nexus  Environmental  Conservation  awards  and  Firms’Profitability: A Step towards Green Investment. Journal of Money, Banking and Finance, Vol. 6, No. 2, 2020, pp. 137-­149