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Editor's Note

The Journal of Economics and Sustainable Growth is proud to publish its first volume through the Development Bank of Nigeria in its first year of operation. This is quite a milestone for the Bank as it positions itself as an intellectual leader in the development finance space in the country. The journal seeks to publish scholarly research and commentary on developments in economics and finance in Nigeria and Africa at large. Indeed, the primary focus is on applied and policy-oriented works which ultimately serves as a basis for public policy discussions on Micro, Small, and Medium Enterprises (MSMEs) in the country.

 

In the journals inaugural issue, we have painstakingly insured a diverse representation of scholarly works that span from corporate insolvency and economic growth, to topics on ICT in reducing information asymmetry for financial sector competition.

 

The first article on corporate insolvency posits a change in the overall management of corporate insolvency is of paramount importance in Nigeria. The author argues that rescuing an insolvent company is more advantageous to stakeholders with economic interests in it than liquidation by demonstrating that if a distressed company is rescued and returned to profitability, not only will it be able, over time, to meet all of its financial obligations to its body of creditors, but the company will also survive and continue to provide jobs for the employees, make tax revenue contributions to the state as well as ensure customers are not deprived of the goods or services provided by the company. In the final analysis, the author posits contributions are vital to the growth of a country’s economy all of which would be lost if the company ceases to exist.

 

The second article featured in the journal is empirical in nature on financial liberalization and business entry nexus in sub Saharan Africa. The authors examined whether the outcome of the financial liberalization strategy adopted in the African continent for the past two and half decades promoted new business entrants.

 

In the third article the author examined the role of information and communication technology in complementing information sharing bureaus (or private credit bureaus and public credit registries) for financial sector competition in 53 countries in Africa. This is a robust study that highlights several takeaways.

 

In the fourth article, another empirical work in which the author examined the impact of mobile money on prices and output in Nigeria between 2008 – 2016. Although the article highlights interesting results, the big takeaway is that the government and policymaker should encourage the use of mobile money to achieve price and output stability. Furthermore, the author opined policy makers should develop avenues of controlling mobile money transactions to channel macroeconomic variables in the desired direction towards achieving the desired policy goals.

 

The last article in our inaugural issue examines the impact of SME financing and inclusive growth in Nigeria from 1990 to 2016. The authors adopted the ARDL model and the Error correction model. In a nutshell, they contend under the review period that SMEs have not had the level of impact primarily due to the interest rate of loans.

 

On a final note, permit me to take the opportunity to thank the Board of Directors of the Development Bank of Nigeria (DBN), the Management team led by Mr. Tony Okpanachi MD/CEO, all the staff of DBN and last but certainly not the least, our contributors to the first issue. Without each of your contributions this novel idea would not come to fruition. It is my hope that the overall content of this issue spurs the imagination of all and begins to drive a shift in the strategy of policy makers.

 

Thank you,

 

Prof. Joseph NnannaEditor in Chief







Table of Contents

1.

Financial Liberalization and Business Entry Nexus in SSA

2.

SME Financing and Inclusive Growth in Nigeria

3.

Impact of Mobile Money on Prices and output

4.

Companies and Economic Growth: Time to Rethink the Treatment of Insolvent Corporate Entities in Nigeria

5.

ICT in Reducing Information Asymetry for financial sector competition

Financial Liberalization and Business Entry Nexus in SSA

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SME Financing and Inclusive Growth in Nigeria

Read

Impact of Mobile Money on Prices and output

Read

Companies and Economic Growth: Time to Rethink the Treatment of Insolvent Corporate Entities in Nigeria

Read

ICT in Reducing Information Asymetry for financial sector competition

Read