Papers by Olumuyiwa O Olamade
This paper examines the long-run relationship between exports and economic growth in Sub-Sahara A... more This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.
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This paper examines the importance of the manufacturing sector for economic growth in African cou... more This paper examines the importance of the manufacturing sector for economic growth in African countries. Although many African countries have posted impressive growth performance in last one decade. A notable fact of this growth is the declining share of manufacturing in the gross domestic product (GDP). Will the contraction of the manufacturing sector hurt African economic growth in the long-run? We approach this question by testing Kaldor's first law of economic growth using panel data for a sample of 28 African countries over the period 1981-2015. Results obtained from pooled Ordinary Least Squares, Fixed Effects, and System Generalized Method of Moments provides current evidence to support manufacturing as the engine of growth in Africa. The Fagerberg-Verspagen (1999) criteria show that despite the falling share of manufacturing in the GDP, the difference between the coefficient of manufacturing output growth and share of manufacturing in GDP is positive and significant. We conclude that de-industrialisation will adversely affect both the growth rate of the non-manufacturing sectors and of the whole economy in African countries.
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This paper examines the long-run intersectoral dynamics and effect of externalities from sectoral... more This paper examines the long-run intersectoral dynamics and effect of externalities from sectoral expansion on growth in Nigeria using time series data from 1981 to 2014. The real value added of the agriculture, manufacturing, minerals and services sectors was regressed against the real gross domestic product (GDP). We use the bounds testing approach to check the long-run interdependence of sectors while impulse response functions and variance decompositions test the direction and strength of linkages among the sectors. Our tests confirm the sectors evolve interdependently over the study period. The minerals sector is the most linked sector with two-way linkages to other sectors. The services sector shows the strongest backward linkage. However, both the minerals and services sectors are not significant in explaining variations in the GDP. The strength and extent of agriculture and manufacturing linkages are much less compare to minerals. Nevertheless, they are positive and significant in explaining long-run growth. 1. Introduction The place of structural change in economic growth has been a subject of long debate among economists of different schools. The neoclassical growth approach holds the view that structural change is an unimportant side effect of economic growth, and so focuses mainly on the determinants of aggregate economic growth. Other economists, especially those associated with the World Bank, claims that growth is a product of changes in the sectoral composition of the economy. In the last three decades, there has been a resurgent of the empirical literature on sectoral economic growth and linkages. The sectoral growth literature springs mainly from the dual economy model of Lewis (1954) and Hirschman (1958) theory of 'unbalanced growth'. The dual economy models view the agricultural sector as the basis of an emerging economy and a generator of capital necessary for industrialisation. On attaining industrialisation, the agricultural sector plays a passive role with no internal economic integration, and a low degree of inter-sectoral linkage (Blunch and Verner, 1999). Recent researches on sectoral growth dispute the assertions of the dual economy model. Blunch and Verner (1999) reveal a large degree of interdependence in sectoral growth in Ghana, Cote d'Ivoire and Zimbabwe. The Ecuadorian economy also shows a large degree of interdependence in sectoral growth (Fiess and Verner, 2001). Sepehrdoust and Hye (2012) found the agricultural sector to have a positive link with economic growth and industrial sector growth in Iran. The concept of sectoral interdependence or linkage describes a sector's relationship with the rest of the economy through it's direct and indirect intermediate demands and supplies. The supply linkage (backward linkage) arises from the interdependence of the sectors to meet their input needs. On the other hand, the demand linkage (forward linkage) arises from the interdependence of the sectors to meet final consumption needs (Saikia, 2011). The sectors with the highest linkages are likely to stimulate rapid growth of production, income and employment (Hirschman, 1958). Many African countries in the 1960s and 1970s adopted policies, which favours the industrial sector at the expense of the agricultural sector, looking to emulate the post-World War II experiences of the industrial economies. The import-substitution industrialisation policies of the 1970s actually favour the industrial sector at the expense of the agricultural sector. However, the expected supply linkage between the industrial and agricultural sectors did not materialise. In Nigeria for instance, the Breweries and Flourmills depend heavily on imported barley and wheat to the neglect of local grains. From the mid-1980s, most African countries keyed into the global shift towards economic openness, which became a major influence on policies of the World Bank and the standard model of development recommended by the IMF to all its client countries (Palley, 2003). In the face of a rapidly integrating global economy, import-substitution industrialisation that favours or neglects some sectors of the economy cannot be optimal. Economic openness would suggest a balance of policies that include
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This paper examines the competitiveness of Nigeria as a resource-driven economy relative to four ... more This paper examines the competitiveness of Nigeria as a resource-driven economy relative to four selected emerging market economies in Africa and Asia that has witnessed transition from the basic level of economic development. The central objective of the paper is to comparatively determine the strengths and weaknesses impacting Nigeria's competitiveness at each stages of economic development, using the Global Competitiveness Report's three stages of development and the competitiveness pillars characteristics of each stage as the basis of analysis. While Nigeria remain a resource-driven economy, its performance in the efficiency enhancers, and the more complex innovation and sophistication factors were found to be good for an efficiency-driven economy. Nigeria's abysmally low and deteriorating performance in the basic requirements remain its strongest challenge for competitiveness and long term growth. 1.0 Introduction Competitive firms operating in a country are the source of wealth creation and accordingly the main engines of competitiveness. The Asian Development Bank (2003) claims that competitiveness is primarily a firm-level concept, therefore any understanding of the determinants of competitiveness must begin at that level. Though economic development research recommend sound monetary and fiscal policies, stable and efficient institutions, and a trusted and efficient legal system as corner stones of economic development. Recent research evidence, however, suggests that these factors only provide the opportunity to create wealth. They do not themselves create wealth as they bear indirectly on the productivity of firms. Porter (2005); Porter, Delgado, Ketels and Stern (2008); and Sala-i-Martin, Blake, Hanouz, Geiger and Mia (2009) linked the capacity of firms for wealth creation to their productivity, which arises first, from the sophistication of their operating practices and strategies, and secondly to the quality of the microeconomic business environment in which they operate. A higher-quality business environment will significantly affect the capabilities that firms can access, the competitive choices they can make, and the productivity that they can generate using their internal assets. Thus, the competitiveness of a country derives from the productivity of its firms. The degree of a country's competitiveness has two major implications for its development. It sets the sustainable level of prosperity that can be earned by the economy, such that more competitive economies tend to be able to produce higher levels of income for their citizens. Furthermore, it determines the rates of return obtained by investments in the economy (Global Competitiveness Report, 2008; 2009). A competitive economy is typically one which institutions, factors and policies continually enhances the productivity of its firms, produce sustainable high level of income for its citizens and offer better returns on investments than other economies. In this paper, Nigeria is benchmarked against four other large emerging market economies at different stages of economic development. Egypt and Indonesia were selected because they ranked as resource-driven economies alongside Nigeria in 2009, and subsequently have moved up to the next stage of development in the global competitiveness ranking within the study period.
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This paper investigates the long-run relationship between exports and imports in 13 ECOWAS (Econo... more This paper investigates the long-run relationship between exports and imports in 13 ECOWAS (Economic Community of West African States) countries during 1970-2015. Evidence points to cointegration of exports and imports in eight of the countries using the bounds testing approach to cointegration. The sign and significance of the error correction term estimates reinforce our evidence of cointegration. Estimates of long-run coefficient based on ARDL and two other long-run estimators; Fully Modified OLS (FMOLS), and the Dynamic OLS (DOLS) showed that Benin, Cape Verde, Cote d'Ivoire, Mali, and Nigeria satisfies the sufficient condition for sustainability of their current accounts over the long-run. Finally, CUSUM and CUSUMSQ tests confirmed the stability of the estimated parameters. However, structural breaks in the relationship between exports and imports exist in Benin.
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ICT is strategic to a firm if it helps to gain a competitive advantage and or reduce a competitiv... more ICT is strategic to a firm if it helps to gain a competitive advantage and or reduce a competitive disadvantage. The intensity of ICT application in shaping or sustaining strategy will depend on the competition faced by companies, their strategic response to the competition, and their capability to dynamically integrate ICT and competitive strategies. Based on a sample of manufacturing
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Emerging Implications, 2012
Technological Learning and Innovations in Indigenous Leather Clusters in Nigeria: Current Status ... more Technological Learning and Innovations in Indigenous Leather Clusters in Nigeria: Current Status and Policy Directions (9781466601345): Willie O. Siyanbola, Olumuyiwa O. Olamade, Oluseyi O. Isola, Boladale A. Adebowale: Book Chapters.
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American Journal of Industrial and Business Management, 2012
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Olamade O. Owolabi, Yusuff S. Adeleke, Kazeem Abubakar, Apr 8, 2013
Customer Relationship Management (CRM) is an enterprise-wide business strategy directed at attrac... more Customer Relationship Management (CRM) is an enterprise-wide business strategy directed at attracting, retaining and effectively serving customers to grow up their value over the long term. Because customers differ in their preferences and purchasing habit, and their mobility is enhanced by increasing availability of information, firms invest in technolo- gies that help them gain detailed understanding of their customers, allowing them to know how to respond to customer needs and market products and services more effectively. While the modern CRM strategy is intensive in the use of analytical technologies, the Nigeria supermarket industry still at the first stage of its development phase have largely interacted with customers through personal interaction partly due to the low level of competition for customers, high cost of investment in analytical CRM infrastructure and lack of dynamic capability to integrate technology, people and processes.
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Journal of Entrepreneurship and Business Innovation, 2014
Total Innovation Management (TIM) is the system of forming an innovative synergy between technolo... more Total Innovation Management (TIM) is the system of forming an innovative synergy between technology, organization and culture to build innovation competence in organizations. Supply Chain (SC) is a global network used to deliver products and services from raw materials to end-customers via an engineered flow of information, physical distribution and cash. This paper appraised TIM on SC in the automobile industry in Nigeria using structured questionnaire and interview. The upshot indicated 40% of SC executives are more concerned with risk associated with supply and thus invest in insurance policies. 80% of trained SC staff applies ICT tools in visibility (trackability). All SC staff was receptive to innovative ideas, indicating sustainability of TIM ideology in the sector. Keywords: Total Innovation Management, Supply Chain, automobile industry, Nigeria
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Journal of Electronic Commerce in Organizations, 2000
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International Journal of …, 2012
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International Journal of Information Management, 2004
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… Management in the …, 2011
... 1 SME and MSME are used interchangeably ... knowledge support institutions and to absorb new ... more ... 1 SME and MSME are used interchangeably ... knowledge support institutions and to absorb new knowledge, low capacity to understand the requirement and procedure for accessing support, and management practices that makes them ineligible to access support funds. ...
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Abstract: In spite of the increasing globalisation of technology, the involvement of developing c... more Abstract: In spite of the increasing globalisation of technology, the involvement of developing countries in producing new technologies and innovations is almost negligible. The production of technological knowledge is concentrated in industrialised countries and developing nations are still lagging behind. It is therefore imperative for developing countries to look inwards to deploy science, technology and innovation (STI) in specific areas where they have comparative advantage. These comparative advantages could ...
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Technology Analysis & Strategic Management, 2011
In this paper, we examine the environmental scanning strategy of manufacturing companies in south... more In this paper, we examine the environmental scanning strategy of manufacturing companies in southwestern Nigeria against the background that manufacturing companies in Nigeria exist in a challenging environment characterised by high import dependency, inappropriate policies, lack of transparent governance and weak industrial capabilities. Empirical data was collected with a questionnaire from a sample of 84 manufacturing firms in southwestern Nigeria. It was observed that generally companies in the industry actively engage in systematic gathering, analyses and assimilation of information about the business environment as strategic input into planning. The main objective of firms’ search was to obtain information required to initiate or support strategies for competing in the domestic market. Central among the factors determining the companies’ level of intrusiveness into the environment are companies’ capacity to interpret changes in the environment, available channels of information and quality of information.
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Papers by Olumuyiwa O Olamade