adegbemi B Onakoya
Babcock University, Economics, Faculty Member
- A focused goal-getter, professional humanistedit
Research Interests: Actuarial Science, Economics, Bankruptcy, Debt, Insolvency, and 3 moreCreditor, Debtor, and Going Concern
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The study examined the effects of trade liberalization on the Nigerian manufacturing sector output between 1980 and 2015. Johansen test was used to determine the existence or otherwise of a long run relationship among the variables. The... more
The study examined the effects of trade liberalization on the Nigerian manufacturing sector output between 1980 and 2015. Johansen test was used to determine the existence or otherwise of a long run relationship among the variables. The Impulse Response test was also applied to ascertain the direction of causality and the ripple effects of the shock of one variable on the other respectively. The findings concluded that all the moderating variables had long-run relationship with manufacturing output. There was no significant relationship between trade liberalization and the output of the Nigerian manufacturing sector in both the short and long run. Key words: Industrialization, Liberalization, Trade Openness, Gross Domestic Product, Inflation Rate, Real exchange rate, Foreign Direct Investment.
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The theoretical obligation of the managers in the agency theory is to safeguard the interest of the shareholders, and this study is targeted at investigating the impact of corporate governance on the performance of nine selected banks in... more
The theoretical obligation of the managers in the agency theory is to safeguard the interest of the shareholders, and this study is targeted at investigating the impact of corporate governance on the performance of nine selected banks in Nigeria. The study performs a pooled Ordinary Least Square (OLS) regression analysis of the data from 2006 to 2010. The findings suggest that both size of the board and its ownership structure have positive significant effects on the Return on Equity (ROE). However, the influence of governance indicator on the assets of the companies is significantly negative. Further, the board composition is found to be insignificant as a predictor of profitability measures. The regulatory influence and economic conditioning factors also show no significant effect on Return on Assets (ROA) as well as ROE, suggesting that the banks have developed the ability to absorb or conceal domestic shocks in the economy. The results generally support the hypothesized fact that the banking industry suffers from asset management and poor governance malaise. The study recommends that the regulatory authorities, including the Asset Management Company of Nigeria, be involved in the screening and monitoring of debt assets beyond the current salvage practice.
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The growth and development of any nation is highly dependent on the level of infrastructure. Infrastructural decay has taken a big toll on the economic development of most Sub- Saharan African nations. This paper investigated the effect... more
The growth and development of any nation is highly dependent on the level of infrastructure. Infrastructural decay has taken a big toll on the economic development of most Sub- Saharan African nations. This paper investigated the effect infrastructural decay on the growth of the manufacturing sector in Sub- Saharan Africa with particular reference to the Nigerian situation. The data necessary for this study were obtained from secondary sources. The results of unit root suggest that all the variables in the model are stationary. The ordinary least square regression with a coefficient of 0.92 revealed a strong positive relationship between the variables of interest. A co-integration test was performed on these variables to determine the long-run relationship between the variables. The results of causality tests suggest that electricity supply, transport infrastructure and inflation rate (the explanatory variables) jointly explain changes in the manufacturing sector performance. The re...
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While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far... more
While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of f...
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The challenge to provide enough resources to fund infrastructure development has been the bane of most developing countries like Nigeria. The appropriate economic and trade policies to deploy to increase revenue generating capacity of the... more
The challenge to provide enough resources to fund infrastructure development has been the bane of most developing countries like Nigeria. The appropriate economic and trade policies to deploy to increase revenue generating capacity of the government become compelling. This study examined the impact of trade openness on trade and tax revenue in Nigeria between 1981 and 2018. The study employed Augmented Dickey Fuller and Phillip Peron tests to conduct the stationarity tests. Akaike Information Criterion and Final Predictor Error provided the best lag lengths. Johansen cointegration test was used to determine the long run relationship. The study employed Vector Error Correction Model for the regression analysis while T- test and F test were also done to confirm the statistical significance of the variables and the models. For autocorrelation problem, Breusch-Godfrey serial correlation LM test were conducted and other post- estimation tests were also used. The result of the study showe...
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This paper examines the effect of intermediation capacity of the financial institutions on the Nigerian economic development (Real Gross Domestic Product (RGDP). It is a causal-effect relationship study which made use of macro data... more
This paper examines the effect of intermediation capacity of the financial institutions on the Nigerian economic development (Real Gross Domestic Product (RGDP). It is a causal-effect relationship study which made use of macro data obtained from Central Bank of Nigeria (CBN) Statistical Bulletin from the period 1981-2016. The result of the Johansen co-integration test and ARDL bound test evidenced that there exist a long-run relationship between financial institutions’ activities and real GDP. ARDL regression model showed financial institution activities, particularly the loans to the private sector significantly impacted on economic growth both in the short-run and long-run The study also found that bank loans and advances, bank reserves and interest rate had insignificant negative impact on real GDP while credit to private sector significantly affected economic development of Nigeria (RGDP) Thus, economic development of Nigeria is driven by the performance of deposit money banks a...
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Ogundajo Grace Abstract This study examined the impact of the recapitalisation of deposit money banks on profitability covering a nine-year period from 2008 to 2017. Panel data of 13 Deposit money banks using data obtained from secondary... more
Ogundajo Grace Abstract This study examined the impact of the recapitalisation of deposit money banks on profitability covering a nine-year period from 2008 to 2017. Panel data of 13 Deposit money banks using data obtained from secondary source is used. The study is based on the Buffer theory of capital adequacy, deposit insurance theory and the expense theory. The investigation was in two phases. The pre-estimation involved the descriptive analysis, correlation analysis and variance inflation factor analysis utilised to evaluate the characteristics of the series. In the estimation and model diagnostic phase, the study utilised the Hausman test to determine and select the most appropriate estimating technique amongst the Pooled OLS, fixed effect and random effect analysis. The model diagnostic test was carried out to determine the appropriateness and exhaustiveness of the model. They are the heteroskedasticity, Cross dependence, the Serial correlation and Autocorrelation tests. The ...
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This study examines the impact of trade openness on manufacturing sector performance in the Nigerian economy, using a time series data from 1975 to 2010. The effects of stochastic shocks of each of the endogenous variables are explored... more
This study examines the impact of trade openness on manufacturing sector performance in the Nigerian economy, using a time series data from 1975 to 2010. The effects of stochastic shocks of each of the endogenous variables are explored using Error Correction Model (ECM). The analysis shows that trade openness has a positive impact on the manufacturing sector performance while exchange rate, inflation rate have a negative impact on the sector performance. The error correction coefficient also indicates rate of adjustment for disequilibrium of the variables shows that growth in the manufacturing sector adjust slowly in the economy. The development of Manufacturing sector and its effective promotion have not been approached seriously in Nigeria, hence, the lack of their impact in the economy. This could be attributed to a plethora of factors, including a weak technological base and low level of capacity utilization. Another major finding from this study is that there are significant pa...
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Okun’s law in its original form was predicated on the experience in the United States of America. Some methodological refinements have been added based on studies conducted in other climes with varied results. This research investigated... more
Okun’s law in its original form was predicated on the experience in the United States of America. Some methodological refinements have been added based on studies conducted in other climes with varied results. This research investigated the applicability of this law in Nigeria, South Africa and the United States of America. The study conducted a comparative analysis of three of the versions of the law. The research employed Ordinary Least Squares method having validated it’s appropriateness with Dickey-Fuller and Philips-Perron tests. The demonstrated superiority of the dynamic version over the difference version was manifest in all the countries. The result also showed that the dynamic version of the law was applicable in the three nations while the difference version showed the lack of linkage between economic growth and unemployment only in Nigeria. Deployment of employment creative employment schemes, labour market reform and economic restructuring are recommended in the Nigeria...
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This paper investigated the impact of macroeconomic variables on the Nigerian value-added agricultural output from 1971 to 2016 both in the short and the long-run. The descriptive statistics and stationarity tests were conducted prior to... more
This paper investigated the impact of macroeconomic variables on the Nigerian value-added agricultural output from 1971 to 2016 both in the short and the long-run. The descriptive statistics and stationarity tests were conducted prior to the long run tests using the Johansen co-integration procedure and the Vector Error Correction Model (VECM) technique. In the third step, the serial correlation and the heteroscedasticity tests were conducted in addition to the Impulse Response analysis. The result revealed the absence of linkage between each of interest, exchange rate and employment in agriculture, and oil revenue on the one hand and agricultural value added output on the other. However, external reserves and real per capita GDP as a proxy of aggregate demand shock in the short term significantly affected the output of the value chain. In the long run, inflation rate, exchange rate and agricultural employment rates were positively related with and are significant in forecasting the...
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This study theoretically examined the convergence of macroeconomic policies on growth among ECOWAS countries. The model used in the study was tested based on endogenous growth theory. The study found fiscal divergence and monetary... more
This study theoretically examined the convergence of macroeconomic policies on growth among ECOWAS countries. The model used in the study was tested based on endogenous growth theory. The study found fiscal divergence and monetary convergence among the sampled countries in ECOWAS. We therefore concluded that the converged countries could form Monetary and Economic Union in order to foster economic growth.
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The Nigerian currency has since the introduction of the Structural Adjustment Programme (SAP) of 1986 has been continually depreciated except for a few years. This study investigated the “J-curve” effect which is the nexus between trade... more
The Nigerian currency has since the introduction of the Structural Adjustment Programme (SAP) of 1986 has been continually depreciated except for a few years. This study investigated the “J-curve” effect which is the nexus between trade balance (TB) and the real effective exchange rate (REER) in Nigeria. It adopted Johansen Cointegration following the outcome of the preliminary Augmented Dickey-Fuller (ADF) test for stationarity of the data series in the model from 1981 to 2016. The Granger causality and the Impulse Response Function tests were also deployed. The post-estimation diagnostic validation conducted included the normality, heteroskedasticity and autocorrelation tests. Empirical evidence from this study showed that in the short run, the trade balance benefited from the devaluation of the Naira rather than suffer deleterious consequences. There was no long run relationship between the dependent variable, (TB) and the explanatory variables, REER and GDP. In Nigeria, it was t...
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Nigeria as an oil exporting mono-economy is vulnerable to world oil prices fluctuations. About10 percent of GDP and 86 percent of the government’s export revenues come from the oil and gas sector. The study assessed the impact of the... more
Nigeria as an oil exporting mono-economy is vulnerable to world oil prices fluctuations. About10 percent of GDP and 86 percent of the government’s export revenues come from the oil and gas sector. The study assessed the impact of the Nigerian oil sector performance on the macroeconomic variables between 1980 and 2017 in light of this overdependence. It carried out pre-estimation tests namely descriptive statistics in order to understand the nature of the variables. The Augmented Dickey Fuller and Phillip Perron tests were also deployed to determine stationarity level of the variables. The long-run co-integration test was conducted after determining the optimal lag. The Error Correction model technique was applied to determine the possible existence of short-run relationship among the variables. The Toda Yamamoto modified Wald’s test was employed in order to know the direction of causality. The Impulse Response Function together with other post-estimation tests was also used. The res...
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The study investigated possible nexus between trade liberalization and poverty alleviation in Nigeria covering the period 1986 to 2014. Descriptive statistics and Unit root test were conducted. The Johansen Co-integration test was also... more
The study investigated possible nexus between trade liberalization and poverty alleviation in Nigeria covering the period 1986 to 2014. Descriptive statistics and Unit root test were conducted. The Johansen Co-integration test was also applied to determine the existence of a long run relationship among the variables. The Vector Error Correction model on the hand revealed that poverty alleviation is not significantly determine by trade liberation in Nigeria in the short-run at 5% level of significance. This means that trade openness aggravated the poverty level in a country. The foreign direct investment and foreign exchange rate are positive and significantly related to human development index. The rate of inflation however is not statistically significant in influencing human development index and poverty. The Impulse Response functions indicated that the impact of trade liberalization fluctuated during the period. The post estimation diagnostic tests confirmed that the robustness of model. Specifically, the residual serial correlation LM tests confirmed the absence of serial correlation. The Q- Statistics test showed that the residuals were normally distributed. The White demonstrated the absence of heteroscedasticity in the model while the inverse roots of AR characteristic polynomial proved that the estimates were dynamically stable. The study recommended that the government should deploy fiscal monetary and trade policy measures to promote the accumulation of domestic capital, protect infant industries and engender property rights. Social and economic policies are also required to protect any country against the adverse effects of lowered trade barriers and the revamping of poverty alleviation programmes.
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This paper examines the impact of corporate governance on bank performance in Nigeria during the period 2005 to 2009 based on a sample of six selected banks listed on Nigerian Stock Exchange market making use of pooled time series data.... more
This paper examines the impact of corporate governance on bank performance in Nigeria during the period 2005 to 2009 based on a sample of six selected banks listed on Nigerian Stock Exchange market making use of pooled time series data. Form the findings, we observe that corporate governance have been on the low side and have impacted negatively on bank performance. The study therefore contends that strategic training for board members and senior bank managers should be embarked or improved upon, especially on courses that promote corporate governance and banking ethics. Introduction The importance of a vibrant, transparent and healthy banking system in the
Research Interests: Finance, Econometrics, Corporate Social Responsibility, Social Entrepreneurship, Community Development, and 10 moreCorporate Governance, Banking, Public Sector Financial Management, Economic Development, Environmental Sustainability, Green Supply Chain Management, Ethical Leadership, Responsible Consumption, Social Entrepreneurship & Innovation, and Human Rights and Corruption
This study examines the effect of oil discovery on sectoral performance in Nigeria, using the time series data from 1975 to 2010. The empirical analysis rests on the Dutch Disease (DD) hypothesis and also combines several procedures in... more
This study examines the effect of oil discovery on sectoral performance in Nigeria, using the time series data from 1975 to 2010. The empirical analysis rests on the Dutch Disease (DD) hypothesis and also combines several procedures in modern econometric estimation techniques. The findings show that oil discovery in Nigeria affects both the agricultural and industrial sectors. However, the effect on the agricultural sector is larger than that on the industrial sector, thus, confirming the existence of DD in Nigeria. The study therefore recommends that the government should give priority to the agricultural sector through the provision of infrastructures, incentives in the form of subsidies, and general modernization of agricultural activities.
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This paper examined the impact of the changes in the macroeconomic factors on the output of the manufacturing sector in Nigeria from 1981 to 2015. Preliminary evaluation of the data was conducted using both descriptive statistics and... more
This paper examined the impact of the changes in the macroeconomic factors on the output of the manufacturing sector in Nigeria from 1981 to 2015. Preliminary evaluation of the data was conducted using both descriptive statistics and stationarity evaluation. The test indicated that not all the variables are normal. The occurrence of order integration at first level difference necessitated the deployment of the Johansen cointegration test. The findings revealed no short run association among manufacturing output and each of GDP, exchange rate, broad money supply and unemployment rate. Negative relationship existed amongst inflation rate, interest rate, exchange rate, broad money supply on one hand, and manufacturing output. The inflation rate and interest rate, were statistically insignificant. However, significant and positive relationship existed between GDP of the previous year and unemployment on the one hand and manufacturing output on the other, at 5 percent level. The results ...
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The essence of the law on bankruptcy is to collect the debt of an entity and distribute such asset among the contending claimholders. It is, also meant to resolve the broad issues of business failure in the context of the imminent or... more
The essence of the law on bankruptcy is to collect the debt of an entity and distribute such asset among the contending claimholders. It is, also meant to resolve the broad issues of business failure in the context of the imminent or indeed the actual collapse of the indebted entity. The objective of the study is to explore relevant theories guiding the procedure of distribution or entitlement in bankruptcy among a group of agents. The study employed exploratory research method via an extended literature review, to investigate the underlying principles guiding the allocation of a given amount of a perfectly divisible good among a group of agents. The results of this extended literature review indicate that the procedure of distribution or entitlement in bankruptcy is supported by five of the theories reviewed while only value based theory posits the absence of any cogent solution to the financial distress of the debtor. The knowledge of theories is not enough for business survival, ...
This study examines the impact of financing small scale enterprises on economic growth in Nigeria, using a quarterly time series data from 1992 to 2009. The study combined several econometric estimation techniques. The findings shows that... more
This study examines the impact of financing small scale enterprises on economic growth in Nigeria, using a quarterly time series data from 1992 to 2009. The study combined several econometric estimation techniques. The findings shows that loan to small scale entrepreneurs have a positive impact on the economic performance while interest rate has a negative impact on economic growth. The study thereby concludes that the greatest or worst problem confronting SMEs in Nigeria is managerial capacity. Access to capital or finance is necessary but not a sufficient condition for successful entrepreneurial development.
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While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far... more
While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of f...
Currency management covers currency recalibration, redenomination and restructuring and it forms part of a broad package of economic and political reforms to strengthen the monetary sector of an economy. This paper reviews the likely... more
Currency management covers currency recalibration, redenomination and restructuring and it forms part of a broad package of economic and political reforms to strengthen the monetary sector of an economy. This paper reviews the likely impact of policy of currency restructuring by the Central Bank of Nigeria (CBN) in the context of macroeconomic implication for Nigeria and in comparison with other nations. The synthesis of the literature suggests that currency management in Nigeria, when viewed from the macroeconomic perspective, is significantly low and in most of the selected countries. The findings also support the literature that the policy may not propel inflation in an open economy. The results, however, suggest that currency denomination in whatever form is only possible in a country with high level of output, of which Nigeria is yet to achieve. The paper therefore recommends that, before embarking on currency restructuring policy, government ought to put in place appropriate f...
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This paper examines the relationship between capital market development and Nigeria’s economic growth using data covering the range of 1981 to 2010 using a Johansen Cointegration technique to test for long run relationship among the... more
This paper examines the relationship between capital market development and Nigeria’s economic growth using data covering the range of 1981 to 2010 using a Johansen Cointegration technique to test for long run relationship among the variables under study. The empirical findings from the research work suggest that the capital market is an essential catalyst for economic growth and is on the average and beneficial to the economy. However, the high costs of raising capital and structural imbalances in the market as well as inconsistent government policies may distorts the speedy growth of the market and thus, limit its positive impact on the economy.
This study examines the impact of trade openness on manufacturing sector performance in the Nigerian economy, using a time series data from 1975 to 2010. The effects of stochastic shocks of each of the endogenous variables are explored... more
This study examines the impact of trade openness on manufacturing sector performance in the Nigerian economy, using a time series data from 1975 to 2010. The effects of stochastic shocks of each of the endogenous variables are explored using Error Correction Model (ECM). The analysis shows that trade openness is positively related to the performance of the manufacturing sector while exchange rate, inflation rate have a negative impact on the sector performance. The error correction coefficient also indicates rate of adjustment for disequilibrium of the variables shows that growth in the manufacturing sector adjust slowly in the economy. The effective promotion and development of the Manufacturing sector have in Nigeria, not been seriously [AO1] approached hence, the paucity of study on their impact on the economy. This could, be attributed to a plethora of factors, including a weak technological base and low level of capacity utilization. Also another major finding from this study i...
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This paper examines the impact of oil price movements on real output growth in Nigeria during the period 1970 to 2011 making use of annual time series data. The empirical analysis rests on dynamic VAR analytical framework. To capture the... more
This paper examines the impact of oil price movements on real output growth in Nigeria during the period 1970 to 2011 making use of annual time series data. The empirical analysis rests on dynamic VAR analytical framework. To capture the possible channels reflecting the fluctuations in the oil prices, the model includes money supply, real exchange rate, government spending and inflation. Our findings indicate the lagged effects of the VAR model are not able to capture any significant impact of changes in oil prices, and oil price shocks are therefore not found to contribute directly to output, exchange rate or inflation in the short run but show a positive significant relationship to output growth in the long run. Following the VAR model results, the generalized impulse responses reaffirm the direct link between the net oil price shock and growth, as well as the indirect linkages.
Research Interests: GDP and Oil Flunctuation
This study attempts to understand how Islamic microfinance can be used to alleviate poverty and maintain sustainable development in Nigeria. It analyses the principles of Islamic finance and conceptualizes its operational details to see... more
This study attempts to understand how Islamic microfinance can be used to alleviate poverty and maintain sustainable development in Nigeria. It analyses the principles of Islamic finance and conceptualizes its operational details to see the linkage between the real economies and sustainable development. The survey conducted in Ogun State, a sub national government of Nigeria reveals that notwithstanding the current upsurge in religious tension in Nigeria, religion is not a hindering factor to the implementation of Islamic microfinance. It also showed that Islamic microfinance in concert with the right fiscal and monetary policies framework, will contribute positively to poverty alleviation in Nigeria.
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This paper examines the relationship between capital market development and Nigeria‖s economic growth using data covering the range of 1981 to 2010 using a Johansen Cointegration technique to test for long run relationship among the... more
This paper examines the relationship between capital market development and Nigeria‖s economic growth using data covering the range of 1981 to 2010 using a Johansen Cointegration technique to test for long run relationship among the variables under study. The empirical findings from the research work suggest that the capital market is an essential catalyst for economic growth and is on the average and beneficial to the economy. However, the high costs of raising capital and structural imbalances in the market as well as inconsistent government policies may distorts the speedy growth of the market and thus, limit its positive impact on the economy.
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"This paper examines the impact of oil price movements on real output growth in Nigeria during the period 1970 to 2011 making use of annual time series data. The empirical analysis rests on dynamic VAR analytical framework. To... more
"This paper examines the impact of oil price movements on real output growth in Nigeria during the period 1970 to 2011 making use of annual time series data. The empirical analysis rests on dynamic VAR analytical framework. To capture the possible channels reflecting the fluctuations in the oil prices, the model includes money supply, real exchange rate, government spending and inflation. Our findings indicate the lagged effects of the VAR model are not able to capture any significant impact of changes in oil prices, and oil price shocks are therefore not found to contribute directly to output, exchange rate or inflation in the short run but show a positive significant relationship to output growth in the long run. Following the VAR model results, the generalized impulse responses reaffirm the direct link between the net oil price shock and growth, as well as the indirect linkages."