Advanced Search
MyIDEAS: Login to save this paper or follow this series

Challenges of Population Dynamics in Nigeria: Implications for Household’s Portfolio Choices

Contents:

Author Info

  • Kanayo Ogujiuba

    (Department of Economics; University of Nigeria)

Abstract

This research study attempts to quantify and examine how changes in Population dynamics affect household portfolio choices (expenditure on food, monetary transactions, goods and services and non-cash expenditure) in Nigeria given the fact that Nigeria is going through a demographic transition. Previous efforts to assess impacts of Population growth have ignored the household expenditure responses, which has been far from being definitive on the transmission net effects on household portfolio choices. This study focuses on Nigeria with the aim of overcoming these defects and obtaining reliable information. The study establishes a link between demographic variables and household expenditure components using the Vector Error Correction Methodology. Next, the estimated equations are used to project the pattern of the different components of expenditure income based on three population scenarios generated from different assumptions on changes in fertility. Nonetheless, several counterfactual simulations were examined to enhance our understanding of the effects of Population dynamics on contingent choices. The results suggest that population dynamics in Nigeria can produce significant effects on the economy via the expenditure profiles of households. The results also suggest that other factors such as real per capita income, ratio of other expenditure categories to total expenditure influence growth of household expenditure components. The results of the study have some important implications for policy: • Pursuit of prudent macroeconomic policy has significant payoffs, as it avoids further constraints on household’s provision of essential social services, such as health services; • The rate of urbanization in Nigeria affects many categories of household expenditure, and therefore government policy of directing policies that would improve household expenditure on monetary transactions is likely to have significant payoffs in terms of easing the rate of pressure on households. • The results show how changes in age structure could be extremely relevant to the process of economic growth. Finally, there must be a sustainable momentum to boost monetary transactions among the people as a means of revitalizing the weakened social pillar. Doing so calls for a population rights approach to development planning that places people at the centre of developmental efforts. This will help in achieving the objectives envisaged for the social charter in the “NEEDS” framework. The determination for an appropriate mix of policies for managing Nigeria’s development requires prescriptions that recognize the structural linkages between the sectors. Such prescriptions must uniquely isolate, define and determine the nature and magnitude of the change variables that drive the development process. The necessity of such prescriptions should form the building blocks of national development planning and resource management. This entails reconciling planning with implementation and carrying out regular analysis of the challenges of population dynamics that underpins the NEEDS programme.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/mic/papers/0512/0512007.pdf
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Microeconomics with number 0512007.

as in new window
Length: 29 pages
Date of creation: 30 Dec 2005
Date of revision:
Handle: RePEc:wpa:wuwpmi:0512007

Note: Type of Document - pdf; pages: 29
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Kelley, Allen C. & Schmidt, Robert M., 1995. "Aggregate Population and Economic Growth Correlations: The Role of the Components of Demographic Change," Working Papers 95-37, Duke University, Department of Economics.
  2. Allen Kelley & Robert Schmidt, 1995. "Aggregate population and economic growth correlations: The role of the components of demographic change," Demography, Springer, vol. 32(4), pages 543-555, November.
  3. Glover, Donald R & Simon, Julian L, 1975. " The Effect of Population Density on Infrastructure: The Case of Road Building," Economic Development and Cultural Change, University of Chicago Press, vol. 23(3), pages 453-68, April.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:0512007. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.